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Posts tagged as “Obligation”

Delinquency

The term delinquency has two primary, distinct meanings in different contexts: one in law and criminology (specifically regarding minors) and another in finance.

Compliance In Finance

Compliance in finance refers to the adherence to all applicable laws, regulations, industry standards, and internal policies that govern the financial services sector and capital markets.

Know Your Customer (KYC)

This is the essence of Know Your Customer (KYC), a due diligence process that has evolved from a simple formality into a cornerstone of financial security and regulatory compliance.

Social Capital

Social capital refers to the value derived from social networks and relationships. It's the "who you know" and the goodwill, trust, and norms of reciprocity that come with those connections.

Basics of Swaps

A swap is a derivative contract where two parties agree to exchange the cash flows from two different financial instruments over a specified period.

Basics of Forwards Contracts

A forward contract is a private, non-standardized agreement between two parties to buy or sell an asset at a pre-agreed-upon price on a specific date in the future.

Basics of Options Contracts

An options contract gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a specific date.

Basics of Futures Contracts

A futures contract is a standardized, legally binding agreement to buy or sell a specific asset at a predetermined price on a specified date in the future. These contracts are traded on a futures exchange and are used for two primary purposes: hedging and speculation.

Off-Balance-Sheet Risk

Off-balance-sheet (OBS) risk refers to the potential for financial losses or liabilities arising from activities or transactions that do not appear directly on a company's balance sheet.