Investing, Income and Valuation

Accrued Interest

Accrued interest is interest that has been earned or accumulated since the previous interest payment but has not yet been paid. It is particularly...

Annual Percentage Yield (APY)

Annual Percentage Yield, usually shortened to APY, expresses an annualized rate of return while taking the effect of compounding into account. It i...

Capital Appreciation

Capital appreciation is an increase in the value of an asset or investment over time. For example, if an asset is purchased for $100,000 and later...

Cash Flow

Cash flow is money moving into or out of an asset, business or investment. For an RWA investment, incoming cash flow might come from rent, interest...

Coupon

A coupon is the interest payment associated with a bond or other debt instrument. The coupon rate is generally stated as a percentage of the bond's...

Discount

A discount occurs when an asset or token trades below a relevant reference value. For example, a tokenized investment trading at $97 while its unde...

Distribution

A distribution is a payment or transfer of income, profits, capital or other value from an investment structure to its investors. Depending on the...

Dividend

A dividend is a distribution a company may make to shareholders, commonly from profits or accumulated earnings. Dividends are not guaranteed and ma...

Face Value

Face value is the stated value of a bond or other debt instrument used to calculate certain contractual payments and, typically, the amount due at...

Fair Value

Fair value is an estimate of what an asset or financial instrument is worth under current market conditions using an appropriate valuation approach...

Market Value

Market value is the price an asset or investment can currently command in the market. For a traded tokenized asset, this may be the price buyers an...

Maturity

Maturity is the date on which a bond, loan or other time limited financial obligation reaches the end of its agreed term. For many debt instruments...

Net Asset Value (NAV)

Net Asset Value, usually shortened to NAV, is the value of an investment fund's or vehicle's assets minus its liabilities. NAV is often expressed a...

Premium

A premium occurs when an asset or token trades above a relevant reference value. For example, a tokenized investment trading at $102 while its unde...

Principal

Principal is the original amount of money invested, borrowed or owed before interest or other returns are added. For a bond or loan, it commonly re...

Redemption

Redemption is the process through which an investor exchanges an investment, share, unit or token according to the product's terms in order to rece...

Total Return

Total return measures the overall gain or loss from an investment, taking into account both changes in its value and income received from it. For a...

Valuation

Valuation is the process of estimating what an asset, company or investment is worth. Different assets require different valuation methods. Publicl...

Yield

Yield measures the income generated by an investment relative to its value or the amount invested. Depending on the asset, that income might come f...