Financial Markets

Principal is the original amount borrowed or the face value of a debt instrument, excluding interest and other financing costs. In a bond, it is generally …

A discount security provides no scheduled income during its life. Rather than receiving periodic payments, the holder generally earns a return when the security is repaid …

A day-count convention determines the portion of a year represented by an interest-bearing period. It combines a method for counting elapsed days with a specified year-length …

The debt market comprises the channels through which governments, companies and other borrowers obtain financing by offering claims that require future payments. Investors can hold these …

Debt securities are tradable claims through which an entity raises funds and commits to repay investors under predetermined terms. Investor compensation can take the form of …

Defaulter pays is a risk-management approach in which a participant is responsible for ensuring that its failure does not impose an unfunded loss on others. Protection …

Delivery versus delivery (DvD) is a settlement method in which two securities exchanges are coordinated so that neither exchange is finalized unless the other is successfully …

Delivery versus payment (DvP) is a settlement method for securities trades in which the buyer's funds and the seller's securities are released as coordinated parts of …

Dematerialisation is a securities-holding method in which an investor’s interest is recorded digitally in a financial account or register, without issuing or retaining a paper certificate.

A depository is a securities-market institution that maintains an authoritative ledger of investors' positions, often through accounts operated by intermediaries, and supports the administration of book-entry …