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Meaning / Definition of

Floating Rate

Categories: Credit and Debt,

A debt security or corporate preferred stock whose interest rate is adjusted periodically to reflect changing money market rates is known as a floating rate instrument. These securities, for example, five-year notes, are initially offered with an interest rate that is slightly below the rate being paid on comparable fixed-rate securities. But because the rate is adjusted upward from time to time, its market price generally remains very close to the offering price, or par.When a nation's currency moves up and down in value against the currency of another nation, the relationship between the two is described as a floating exchange rate. For example, the us dollar is worth more japanese yen in some periods and less in others. That movement is usually the result of what's happening in the economy of each of the nations and in the economies of their trading partners. A fixed exchange rate, on the other hand, means that two (or more) currencies, such as the us dollar and the Bermuda dollar, always have the same relative value.

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Definition / Meaning of

Committee On Uniform Security Identification Procedures (CUSIP) Service Bureau

Categories: Stocks,

The CUSIP Service Bureau, operated by Standard & Poor's for the american bankers association, exists for the primary purpose of uniquely identifying issuers and issues of financial instruments within a standard framework, and disseminating this data to the financial marketplace via various media. cusip numbers and standardized descriptions are used by virtually all sectors of the financial industry, and are critical for the accurate and efficient clearance and settlement of securities as well as back-office processing.

The CUSIP Service Bureau seeks to assign unique numbers and standardized descriptions in a timely and accurate manner, using its best efforts to use primary or reliable sources of information. However, because of the possibility of human or mechanical error by securities issuers, CUSlP's sources, Standard & Poor's or others, neither Standard & Poor's nor the american bankers association guarantees the accuracy, adequacy or completeness of any information, and Standard & Poor's and the american bankers association are not responsible for any errors or omissions or for the results obtained from use of such information.

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