1: end of period definition
2: how the end of the period works
3: end of period vs period term
4: example of the end of the period
Opening information:
End of period breaks into three words, End means last things or last minute of something, period means one stated time or determined one duration to another.
The end of the period means the last things of one time or the last time of one matter of duration, so now let’s have a look at what is the end of the period, how the end of a period works in the public for all the speculators and Investors, and what is the difference between the end of the period and period term, finally one clear example about the end of the period.
1: end of period definition
Mr. Hokupan is the one who applied for the loan from the bank, and his applied loan was approved after the 1 month of process and the full submission of all files which are demanded from Mr. Hokupan.
He took a 12 million dollar business loan using the business asset as collateral from the bank, the bank provided him a 10 years of long-term paying the whole with a 6.5 percent interest rate.
Hokupan must pay his business each month to the bank even if his business went into loss or profit, but his business loan paying the amount due date would end later 10 years.
His last date of paying the due amount is considered as the end of the period of his business loan, this end of the period would be used in a more complex way in different products.
So now let’s dive into how the end of period works in the public market for all the speculators and Investors.
2: how the end of the period works
The end of the period represents the last day or minutes or the second of the one time, but it’s not specifically demonstrated to any day or minutes.
This end of the period is completely based on when a certain item or matter expires, which at that time becomes the end of the period for all kinds of things.
If the bond security is made a contract for one fixed intestines rate for the next 3 years then finally day of the 3rd year of such bond security is called as end of the period.
When the bond purchaser buys that debt security, they stop receiving the payment of the interest after the last day of 3rd year, which that last day makes the bond end of the period.
Moreover, whenever any of the public Investors purchased the common shares of the business they didn’t have any end period for rights in a business until they held such common shares without exchange to some other person.
Then any of the options traders who bought the call option or put option with a strike price of pre-determined time, that pre-determined time of the last Minute of hours becomes the end of the period for such option security.
However, the preferred shares of the Stock market are considered as fixed interest paid shares in the public market, which that the exchange of preferred shares to other public Investors makes that preferred share end of the period of selling Investors.
Don’t confuse it doesn’t mean the preferred shares had an end of the period, instead selling Investors had the end of the period to hold such preferred shares.
Therefore any debt securities or stock when it’s had its last day to function or pay some interest to another person is called an end period.
Most of them confuse the end of period and term period, so let’s jump into the key difference in it anyway.
3: end of period vs period term
The difference between the end of period and period term are, end of the period is the one that demonstrates any kind of time where about to expire from one-time duration.
And term period is a part of the whole period which is used to separate the total period into different parts.
So the key difference between the end of the period and the period term are, end of the period only represents the last minute of the whole payment period and contract period but the period term became part before the end of the period.
To make you more clear about the end of the period, let’s look at one clear example anyway.
4: example of the end of the period
Say you had purchased one debt instrument, and that dent instrument is considered a bond in the public market.
The purpose of your holding bonds is to pay the interest each year for the next 30 years continuously, with the interest received based on bond value.
Here each year becomes a period term and the 30th of last year is known as the end of the period.