November 27, 2024
History and Formation of DTCC The formation of DTCC was a response to the significant challenges faced by the securities industry in the late 1960s. With trading volumes surging, physical securities exchanges were overwhelmed, leading to what was known as… Continue Reading…
What is Demonetization? Definition and Process Demonetization involves the removal of a currency’s legal tender status and its replacement with a new currency. This process can be complex and involves several steps. For instance, when India demonetized its 500 and… Continue Reading…
What is Delta Hedging? Delta hedging is a risk management strategy aimed at reducing the directional risk associated with price movements in the underlying asset. The term “delta” refers to the sensitivity of an option’s price to changes in the… Continue Reading…
What is a Delayed Draw Term Loan (DDTL)? A delayed draw term loan (DDTL) is a type of loan that allows borrowers to draw funds over a specified period, known as the draw period. Here’s how it works: Incremental Draws:… Continue Reading…
Retirement savings are a crucial aspect of financial planning, and one often overlooked but highly beneficial tool is the Deferred Profit Sharing Plan (DPSP). These plans offer a unique way for employers to share their profits with employees, providing a… Continue Reading…
What is a Deed of Release? A deed of release is a legal document that eliminates previous claims on assets or contracts. It is often used in real estate to signify the satisfaction of a mortgage or other lien on… Continue Reading…
What is DIP Financing? DIP financing is a type of loan provided to companies that are undergoing Chapter 11 bankruptcy. The term “debtor in possession” refers to the company’s ability to retain control over its assets during the bankruptcy process.… Continue Reading…
What are Debt Funds? Debt funds are a type of mutual fund that invests in bonds, government securities, and other debt instruments. Unlike equity funds that invest in stocks, debt funds focus on generating returns through interest income from these… Continue Reading…
What is a Dealer Market? Definition and Mechanism A dealer market functions through a network of dealers who act as market makers. These market makers post prices for buying and selling securities, thereby providing liquidity to the market. The process… Continue Reading…
What is a DUNS Number? A DUNS number is a unique nine-digit identifier assigned to businesses by Dun & Bradstreet. The full name, Data Universal Numbering System, reflects its universal application across different industries and countries. This number serves as… Continue Reading…