Guaranteed minimum interest rate, as agreed in particular for floaters. Even if interest rates fall below this level, the investor is still granted the minimum interest rate. – This downside protection comes at a price. If market interest rates are higher than the minimum rate, the investor is granted a somewhat lower interest rate. The opposite – i.e., the upper limit of the interest rate – is known as the cap. – A trading place on the stock exchange (the area of an exchange where securities are traded). – See cap, inflation options, pit.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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