What Is a Forward Forward? Forward forward agreements, also known as forward rate agreements, are a type of financial contract in which two parties agree to enter into a loan transaction at a future date. The party borrowing the funds agrees to repay the principal amount along with a premium, upon maturity of the loan.
What Is Forward Guidance? Forward guidance refers to the communication from a central bank about the state of the economy and the likely future course of monetary policy. It is the verbal assurance from a country’s central bank to the public about its intended monetary policy. Key Takeaways Forward guidance refers to the communication from a
What Is Forward Integration? Forward integration is a business strategy that involves a form of downstream vertical integration whereby the company owns and controls business activities that are ahead in the value chain of its industry, this might include among others direct distribution or supply of the company’s products. This type of vertical integration is
What Is Forward Looking? The term “forward looking” is a business term used to identify predictions about future business conditions, typically with publicly-traded corporations. The term is useful to stockholders, who consistently query company management about what they believe will happen in the future so that they can buy or sell shares accordingly. While no
What Is Forward Margin? The forward margin, or forward spread, reflects the difference between the spot rate and the forward rate for a certain commodity or currency. The difference between the two rates can either be a premium or a discount, depending on if the forward rate is above or below the spot rate, respectively.
What Is a Forward Market? A forward market is an over-the-counter marketplace that sets the price of a financial instrument or asset for future delivery. Forward markets are used for trading a range of instruments, but the term is primarily used with reference to the foreign exchange market. It can also apply to markets for
What Is Forward Price-to-Earnings (Forward P/E)? Forward price-to-earnings (forward P/E) is a version of the ratio of price-to-earnings (P/E) that uses forecasted earnings for the P/E calculation. While the earnings used in this formula are just an estimate and not as reliable as current or historical earnings data, there are still benefits to estimated P/E
What Is a Forward Premium? A forward premium is a situation in which the forward or expected future price for a currency is greater than the spot price. It is an indication by the market that the current domestic exchange rate is going to increase against the other currency. This circumstance can be confusing because an
What is a Forward Price Forward price is the predetermined delivery price for an underlying commodity, currency, or financial asset as decided by the buyer and the seller of the forward contract, to be paid at a predetermined date in the future. At the inception of a forward contract, the forward price makes the value of the contract
What Is SEC Form 4: Statement of Changes in Beneficial Ownership? SEC Form 4: Statement of Changes in Beneficial Ownership is a document that must be filed with the Securities and Exchange Commission (SEC) whenever there is a material change in the holdings of company insiders. Insiders consist of directors and officers of the company
