Examlex
Commissions for on-line trades are considerable lower than for orders placed with a full- service broker.
Nominal Rate
The stated or advertised interest rate on a loan or investment, not accounting for compounding or fees.
Effective Rate
The interest rate on a loan or financial product, adjusted for the effect of compounding over a specified period of time.
Semi-annually Compounded
A method of computing interest in which interest is added to the principal balance twice a year, resulting in compound growth.
Effective Rate
The actual rate of interest earned or paid on an investment or loan, taking into account compounding.
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