Day count convention

Definition:

A convention for determining the number of days between two dates and the number of days in a year, which are used for calculating interest accrued on bonds and other interest rate dependent securities. Also see actual/actual, actual/360, 30/360.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Good-this-Month order (GTM)

An order to buy or sell securities that continues to be a valid order until the end of the current month.

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