The Basics Of Game Theory Game theory is a branch of applied mathematics that is used in the social sciences, most notably in economics, as well as in biology (most notably evolutionary biology and ecology), engineering, political science, international relations, computer science, and philosophy. Game theory is the process of modeling the strategic interaction between two … [Read more...]
The Parity Price: Meaning
What Does Parity Price Mean? The Parity Price is the cost for a given commodity that is tied to a historical price or composite price.When the price of an asset is directly linked to another price.The term "parity" refers to equality. Examples of parity price are: 1. Convertibles - the price at which a convertible security equals the value of the underlying stock. 2. … [Read more...]
Reverse Convertible Note – RCN
A synthetic instrument that shares characteristics with both bonds and stocks. Reverse convertible notes typically provide high coupon payments and final payoffs that depend on the performance of an underlying stock.A security that combines aspects of a stock and a bond. An RCN operates like a debt security that pays a fixed coupon, which is usually higher than the coupons for … [Read more...]
Can You Buy Bonds and Stocks simultaneously ?
Should You Buy Bonds as Well as Stocks Are Bonds a lucrative investment? First, think about what your short term and long term goals are before deciding to invest in bonds. For the most part, it is never a good idea to put all your assets into any one investment instrument. Diversification is important. If you do decide to include some bonds in your portfolio, be sure to … [Read more...]
The Basics of Convertible Bond Calculator
The Basics of Convertible Bond Calculator The security ranging term of convertible bond is between 25 & 30 years, providing the owner authority to aquire the issuers' common stock directly from the issuer before purchasing it in the open market. Convertible bonds are termed as subordinated debt & are risky than unsubordinated debt. Features in structure of a … [Read more...]