Obligation

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Dictionary Says

Definition of 'Obligation'

The legal responsibility to meet the terms of a contract. If the obligation is not met there is often recourse for the other party to the contract.
Investopedia Says

Investopedia explains 'Obligation'

In the financial world, obligation refers to an outstanding debt that a party must still repay - and if they do not pay, they default on the debt. For example, when the U.S. government issues Treasury bonds it has the obligation to pay back the principal to the debt holders.
Search results for

'Obligation'

  • What is the difference between a collateralized mortgage ...

    http://www.investopedia.com/ask/answers/07/CMO-CBO.asp
    ... Feedback Feedback. What is the difference between a collateralized mortgage
    obligation (CMO) and a collateralized bond obligation (CBO)? ...

  • Series 7 Study Guide - Debt Securities - Collateralized Mortgage ...

    http://www.investopedia.com/exam-guide/series-7/debt-securities/collateralized-mortgage-obligation.asp
    ... What's wrong with my debtor paying me back faster than his obligation requires?"
    As counterintuitive as it sounds to someone new to debt markets, being paid ...

  • A Primer On Defined-Benefit Pension Plans

    http://www.investopedia.com/articles/retirement/11/defined-benefit-pension-plans-primer.asp
    ... The Pension Obligation Now that we've differentiated between defined-contribution
    and defined-benefit plans, we need to dig deeper into the pension obligations ...

  • Municipal Bond Tips For The Series 7 Exam

    http://www.investopedia.com/articles/professionaleducation/07/Series_7_municipal.asp
    Learn to distinguish between general obligation and revenue bonds to ace
    this test. ... situations. General Obligation or Revenue Bond? ...

  • Behind The Scenes Of Your Mortgage

    http://www.investopedia.com/articles/pf/07/secondary_mortgage.asp
    ... monthly payment ends up with an investor as part of an mortgage-backed security
    (MBS), asset-backed security (ABS), collateralized mortgage obligation (CMO) or ...

  • 4 Reasons To Hold Onto An Option

    http://www.investopedia.com/articles/optioninvestor/09/when-exercise-options.asp
    ... A call option is a contract that grants its owner the right, but not the obligation,
    to buy 100 shares of the underlying asset by paying the strike price per ...

  • What is the difference between options and futures?

    http://www.investopedia.com/ask/answers/05/060505.asp
    ... An option gives the buyer the right, but not the obligation to buy (or sell) a certain
    asset at a specific price at any time during the life of the contract. ...

  • Losing Money? Don't Blame Your Broker

    http://www.investopedia.com/articles/pf/07/dont_blame_your_broker.asp
    ... As A Shareholder.) However, as an intelligent investor (or, at least as somebody
    who would prefer not to be victimized), you also have an obligation to do all ...

  • Spotting Creative Accounting On The Balance Sheet

    http://www.investopedia.com/articles/fundamental-analysis/10/creative-accounting-balance-sheet.asp
    ... Companies can make themselves appear in a stronger financial position by
    changing a few assumptions to reduce the pension obligation. ...

  • How To Sell Put Options To Benefit In Any Market

    http://www.investopedia.com/articles/optioninvestor/10/sell-puts-benefit-any-market.asp
    ... The exact opposite view is taken when you sell a call or put option. Most important,
    when you sell an option you are taking on an obligation not a right. ...

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