Business, Legal & Accounting Glossary
Medium-term refers to the time to hold an asset. It may be as low as 1 year and could extend to 10 years. This term is usually employed when referring to bonds. Investors holding a stock for an approximate period of 1 year may be termed medium-term investors.
The Medium-term in technical analysis means a time period from a few weeks to a few months. This time period is also known as intermediate-term.
Holding of an asset for a short time period. From an investment view, a short term security is one that matures within 1 year or in a lesser period of time.
It refers to holding an asset for an extended time period. A long term asset can be held for a brief period of 1 year and may stretch to 30 years or more.
It is an investment strategy followed by investors who purchase stocks and holds them for a longer time period. This stock is held even if the market fluctuates. Stocks destined for buy and hold strategy for a specific investor are bought selectively. An investor after purchasing stocks does not concern himself with technical investors and short-term price movements.
It is commonly believed that a buy and hold investing strategy in equities fetch a higher return than peer investment asset classes like bonds. Longer-term investments carry a lower tax rate than short term investments.
A medium-term note is a note that matures from 5 to 10 years. MTN gives an idea to investors to what its maturity value will be as compared to other fixed-income securities. The coupon rate on medium-term notes will be higher than short term notes excluding other factors.
It is an arrangement by which the International Monetary Fund (IMF) allows medium-term concessional loans to poorer nations. These are loans are given for the balance of payment adjustments. ESAF facility became operational from 1987.
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This glossary post was last updated: 27th March, 2020 | 1 Views.