Financial Glossary  
           
 Glossary Tutorials Articles About Advertise Contact
Browse the largest investing glossary online.   Search
A
1|2|3
B
1|2
C
1|2|3
D
1|2|3
E
1|2|3
F
1|2|3
G
1|2|3
H
1|2|3
I
1|2|3
J
1|2
K
1|2|3
L
1|2|3
M
1|2|3
 
N
1|2|3
O
1|2|3
P
1|2|3
Q
1|2
R
1|2|3
S
1|2|3
T
1|2|3
U
1|2|3
V
1|2|3
W
1|2
X
1|2
Y
1|2|3
Z
1|2
#
1|2

 
Include Definitions
(more results)
Browse by Category
 
Investing / Investments
Real estate investing
Stock investing
Investment management
Retirement investing
Bonds / bond funds
Mutual Funds
 
Personal Finance
Business and finance
Household finance
Mortgage
Finance dictionary
Corporate finance
Financial service
Money management
Estate planning
Loans
 
Stock Market Investing
Stock research
Stock trading
Stock options
Stock trading
Stock exchanges
 
 
InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Convexity  

Definition 1.

Property that a curve is above a straight line connecting two end points. If the curve falls below the straight line, it is called concave.
 

Definition 2.

A measure of the curvature in the relationship between bond prices and bond yields.
 

Definition 3.

A volatility measure for bonds used in conjunction with modified duration in order to measure how the bond's price will change as interest rates change. It is equal to the negative of the second derivative of the bond's price relative to its yield, divided by its price. For example, since a non-callable bond's duration usually increases as interest rates decrease, its convexity is positive.
 
  Home | Glossary | Tutorials | Articles | About
Webmasters |Advertise | Contact | Privacy


All material Copyright InvestHub.com and IAT Inc., 2003-2014