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Home > QFINANCE Dictionary > Definition of floating charge

Definition of

floating charge

Finance

charge linked to company's assets overall a charge linked to any of the company's assets in a category, but not to a specific item

floating charge - Related Articles
  • Managing Interest Rate Risk

    Best Practice

    Companies with debt charged at variable rates (for example, based on Libor, and also called floating rates) will be exposed to increases in interest rates, whereas companies whose borrowing costs are totally or partly fixed will be exposed to falls in interest rates. The reverse is obviously true
    By Will Spinney

  • Raising Capital by Issuing Bonds

    Checklists

    the exact cost across the debt’s lifetime and can budget for the principal and interest payments each year. Floating-rate debt usually has a mark-up over the base rate set by the central bank in charge of the currency that is being borrowed, meaning that the issuer may have to pay more

  • Risk Management of Islamic Finance Instruments

    Best Practice

    Nonetheless, Kamali (2001) finds that “there is nothing inherently objectionable in granting an option, exercising it over a period of time or charging a fee for it, and that options trading like other varieties of trade is permissible mubah, and as such, it is simply an extension of the basic liberty
    By Andreas Jobst

  • Private Investments in Public Equity

    Best Practice

    that is convertible into common stock based on a floating or variable conversion price, i.e., the conversion price fluctuates with the market price of the issuer’s common stock. Hence, with a structured PIPE, investors do not assume price risk during the pendency of the resale registration statement. If the market
    By William K. Sjostrom, Jr

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Definitions of ’floating charge’ and meaning of ’floating charge’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’floating charge’ and other financial terms with our online QFINANCE Financial Dictionary.

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