Swap

Business, Legal & Accounting Glossary

Definition: Swap


Swap

Quick Summary of Swap


Traditionally the exchange of one security for another to change the maturities of a bond portfolio or the quality of the issues in a stock or bond portfolio, or because investment objectives have changed.

Currency swaps involve the purchase/sale of a currency in the spot market against the simultaneous purchase/sale of the same amount of the currency in the forward market.

An interest rate swap is an arrangement in which two parties agree to exchange periodic interest payments, at agreed intervals, over an agreed period, but without any principal being paid. The most common and simplest deal involves one party paying a fixed rate of interest and the other paying a floating rate.




Cite Term


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Page URL
https://payrollheaven.com/define/swap/
Modern Language Association (MLA):
Swap. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
March 28, 2024 https://payrollheaven.com/define/swap/.
Chicago Manual of Style (CMS):
Swap. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/swap/ (accessed: March 28, 2024).
American Psychological Association (APA):
Swap. PayrollHeaven.com. Retrieved March 28, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/swap/

Definition Sources


Definitions for Swap are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 26th April, 2020 | 0 Views.