Tier 1 and Tier 2

Definition:

Descriptions of the capital adequacy of banks. Tier 1 refers to core capital while Tier 2 refers to items such as undisclosed resources.

Investing Essentials


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

Term of the Day

Central Counterparty Clearing House

An organization in European countries that helps facilitate trading done in European derivatives and equities market.

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