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Answer Posted / geetha
Derivaties:
Financial contracts that derive their value from other
underlying instruments. The Province uses derivatives
including swaps, forward foreign exchange contracts,
forward rate agreements, futures and options to hedge and
minimize interest costs.
or
A derivative is a synthetic construction designed to give
the same profile of returns as some underlying investment
or transaction, without requiring the principal cash
outlay. They are called derivatives because they derive
their value from the performance of the underlying
instrument.
Financial derivatives can be found in debt, equity,
currency and commodity markets.
Equity:
Equity is simply the amount of ownership value a homeowner
has in the property. Equity is computed by subtracting the
total of the unpaid mortgage balance and any outstanding
liens or other debts against the property from the
property's fair market value.A homeowner's equity increases
as he or she pays off the principal balance of the mortgage
and/or as the property appreciates in value.When a mortgage
and all other debts against the property are paid in full,
the homeowner has 100 percent equity in the property.
Mutual Fund:
Types of investment funds that raise money from
shareholders to invest in a group of assets such as
equities, fixed income, and money market funds. Mutual
Funds may often have a minimum investment amount and a
series of fees associated with them.
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