Swap

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Dictionary Says

Definition of 'Swap'

Traditionally, the exchange of one security for another to change the maturity (bonds), quality of issues (stocks or bonds), or because investment objectives have changed. Recently, swaps have grown to include currency swaps and interest rate swaps.
Investopedia Says

Investopedia explains 'Swap'

If firms in separate countries have comparative advantages on interest rates, then a swap could benefit both firms. For example, one firm may have a lower fixed interest rate, while another has access to a lower floating interest rate. These firms could swap to take advantage of the lower rates.
Search results for

'Swap '

  • An In-Depth Look At The Swap Market

    http://www.investopedia.com/articles/trading/11/introduction-swap-market.asp
    The swap market plays an important role in the global financial marketplace; find
    out what you need to know about it. ... An In-Depth Look At The Swap Market. ...

  • Starbucks Stock Swap: Happy Baristas Means Happy Investors ...

    http://financialedge.investopedia.com/financial-edge/0609/Starbucks-Stock-Swap-Happy-Baristas-Means-Happy-Investors.aspx
    ... Starbucks Stock Swap: Happy Baristas Means Happy Investors. Posted: June 8,
    2009 ... the McCafe? What is an employee stock swap? An employee ...

  • Currency Swap Basics

    http://www.investopedia.com/articles/forex/11/introduction-currency-swaps.asp
    Currency Swap Basics. ... appropriate currency. Let's back up for a minute to
    fully illustrate the function of a currency swap. Purpose ...

  • CFA Level 1 Study Guide - Derivatives - Swap Markets and Contracts ...

    http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/swap-markets-contracts.asp
    ... Includes various methods for terminating a swap contract. ... 15.35 Effect of Cash Flows
    on Put-Call Parity and the Lower Bounds; 15.36 Swap Markets and Contracts; ...

  • How can I use an "airbag swap"?

    http://www.investopedia.com/ask/answers/08/airbag-swap.asp
    An airbag swap is an interest rate swap designed to provide a cushion against rising
    interest rates. The airbag swap originally was designed for. ...

  • What is a "gypsy swap"?

    http://www.investopedia.com/ask/answers/08/gypsy-swap.asp
    A gypsy swap is a unique method by which a company may raise capital without issuing
    debt or holding a secondary offering. ... What is a "gypsy swap"? ...

  • What is a debt/equity swap?

    http://www.investopedia.com/ask/answers/06/debtequityswap.asp
    ... Feedback Feedback. What is a debt/equity swap? ... One possible way to achieve
    this goal is to issue a debt/equity or an equity/debt swap. ...

  • How do I use a rollercoaster swap?

    http://www.investopedia.com/ask/answers/08/rollercoaster-swap.asp
    A rollercoaster swap is the name for a swap (the exchange of one security for another)
    with a notional principal that differs during various payment. ...

  • What is an absolute rate?

    http://www.investopedia.com/ask/answers/08/absolute-rate.asp
    An absolute rate is easy to understand once you know the basics of an interest rate
    swap. ... An absolute rate is the fixed rate portion of an interest rate swap. ...

  • An Introduction To Swaps

    http://www.investopedia.com/articles/optioninvestor/07/swaps.asp
    ... 1. Contingent claims, eg options 2. Forward claims, which include exchange-traded
    futures, forward contracts and swaps SEE: Options Basics A swap is an ...

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