Definition or financial glossary – Letter I

-          Interest

The remuneration of an issue of bonds may be determined by a type of fixed or variable remuneration linked to any indicator or index official

Interest is an index to measure the profitability of the savings or cost of credit. Is given in percent.

Indicates an amount of money and time dies, what percentage of that money would be obtained or would have to pay in the case of a credit. Normally the term is usually one year.

There are two types of indicators for measuring the profitability of savings or a credit shortage: the NIR and the APR. The NIR or Nominal interest rate (abbreviated as nominal interest) to the percentage of money that occurs when you run the payment of interest is called. Best explained with an example:

If you have a nominal interest of 6% per annum and is applied once a year, when applied is paid 6% on what was saved.

If applies once a month instead of a year, would be 6%/12 = 0.5% of what was saved.

But next month the NIR is applied to what had saved more produced by interests. So at year end is as if had more than 6% of int

-          Intrinsic value

Value attached to each share when calculating the value of a company, taking as indicators his economic activity, his evolution, expectations, growth, etc.

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Erick Gálvez

Administrador at ASD Forex
Webmaster of ASDForex.com and trader of forex market since 2008. I'm in charge of the publication and editing of news and analysis www.asdforex.com

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