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Q: please define a "debt instrument"

Category: glossary , Asked by: F. E. From United States

A: A paper or electronic obligation that enables the issuing party to raise funds by promising to repay a lender in accordance with terms of a contract. Types of debt instruments include notes, bonds, certificates, mortgages, leases or other agreements between a lender and a borrower. Debt instruments are a way for markets and participants to easily transfer the ownership of debt obligations from one party to another. Debt obligation transferability increases liquidity and gives creditors a means of trading debt obligations on the market. Without debt instruments acting as a means to facilitate trading, debt is an obligation from one party to another. When a debt instrument is used as a medium to facilitate debt trading, debt obligations can be moved from one party to another quickly and efficiently. Visit Interbank FX

    please define the "hook reversal"

    Category: glossary by E. Eaton from Laval, Canada

    "hook reversal " is A short-term candlestick pattern, occurring in either an uptrend or a downtrend, that is used to predict a reversal in the trend's direction. The pattern is identified when a candlestick has a higher low and a lower high compared to the previous day's candlestick. This pattern is unique because the difference in size between the first and second bar's body is small, compared to that seen in other types of engulfing patterns. If this pattern is found in an uptrend, then the open must be near the prior high, and the low must be near the prior low. This pattern is often classified as a type of harami position because the real body of the second candle forms within the body of the previous candle. It should be noted that the reversal suggested by this pattern is considered to be more significant if it is identified within a strong trend.

    what is an "investment"?

    Category: glossary by W. Cook from Ireland

    the "investment " is An asset or item that is purchased with the hope that it will generate income or appreciate in the future. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or appreciate and be sold at a higher price. The building of a factory used to produce goods and the investment one makes by going to college or university are both examples of investments in the economic sense. In the financial sense investments include the purchase of bonds, stocks or real estate property. Be sure not to get'making an investment' and'speculating' confused. Investing usually involves the creation of wealth whereas speculating is often a zero-sum game; wealth is not created. Although speculators are often making informed decisions, speculation cannot usually be categorized as traditional investing.

    please tell me what a "clearing" is

    Category: glossary by F. Hawkins from Atlanta, United States

    The process of settling a trade.

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    please define the "wash-out round"
    "wash-out round " is A common round of financing to owners of small companies that are not yet financially stable. When such financing is done, the new issuance serves to dilute drastically the ownership of previous investors and owners. Often, the new investors are able to take control of the company because the previous owners are in desperate need of more financing to avoid bankruptcy. Also know as "burn-out round" or "cram-down round". The wash-out round is often the final financing opportunity available to entrepreneurs before a company is forced into bankruptcy. Wash-out rounds often occur when companies are unable to achieve performance levels that have been set in order to receive additional financing from investors. Wash-outs occurred during the dotcom craze of the late 1990s when many companies were significantly overvalued. Visit Global Forex Trading (GFT)

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