The 800 pound gorilla
Slang for the most important party to a transaction/or in a group |
Similar financial terms
Simple compound growth methodA method of calculating the growth rate by relating the terminal value to the initial value and assuming a constant percentage annual rate of growth between these two values.
Realized compound yield
Yield assuming that coupon payments are invested at the going market interest rate at the time of their receipt and rolled over until the bond matures.
Compound interest
Interest paid on previously earned interest as well as on the principal.
Compound option
Option on an option.
Compounding
The process of accumulating the time value of money forward in time. For example, interest earned in one period earns additional interest during each subsequent time period.
Compounding frequency
The number of compounding periods in a year. For example, quarterly compounding has a compounding frequency of 4.
Compounding period
The length of the time period (for example, a quarter in the case of quarterly compounding) that elapses before interest compounds.
Continuous compounding
The process of accumulating the time value of money forward in time on a continuous, or instantaneous, basis. Interest is earned continuously, and at each instant, the interest that accrues immediately begins earning interest on itself.
