WORD OF THE DAY: ABS - refers to asset-backed security. This is a term for a convention used to express the rate of prepayments for an asset-backed security. ABS expresses principal prepayments as a percentage of the orig ... More
1. ) The amount by which the price for a security or bond sells below its par or face value. The discount or difference between such a reduced value purchase price and the redemption (par) value comprises all or part of the investor's compensation for owning the security.
2. ) The amount by which a preferred stock or bond may sell below its par value. See Premium.
Fund Letters
