 Financial Terms Reset frequency

# Definition of Reset frequency ## Reset frequency

The frequency with which the floating rate changes.

# Related Terms:

## Compounding frequency

The number of compounding periods in a year. For example, quarterly
compounding has a compounding frequency of 4.

## Frequency distribution

The organization of data to show how often certain values or ranges of values occur.

## Compounding

The process of accumulating the time value of money forward in time. For example, interest
earned in one period earns additional interest during each subsequent time period.

## Compounding period

The length of the time period (for example, a quarter in the case of quarterly
compounding) that elapses before interest compounds.

## Continuous compounding

The process of accumulating the time value of money forward in time on a
continuous, or instantaneous, basis. Interest is earned continuously, and at each instant, the interest that
accrues immediately begins earning interest on itself.

## Cumulative probability distribution

A function that shows the probability that the random variable will
attain a value less than or equal to each value that the random variable can take on.

## Discrete compounding

compounding the time value of money for discrete time intervals. ## Distributions

Payments from fund or corporate cash flow. May include dividends from earnings, capital
gains from sale of portfolio holdings and return of capital. Fund distributions can be made by check or by
investing in additional shares. Funds are required to distribute capital gains (if any) to shareholders at least
once per year. Some Corporations offer Dividend Reinvestment Plans (DRP).

## Lognormal distribution

A distribution where the logarithm of the variable follows a normal distribution.
Lognormal distributions are used to describe returns calculated over periods of a year or more.

## Normal probability distribution

A probability distribution for a continuous random variable that is forms a
symmetrical bell-shaped curve around the mean.

## Probability distribution

Also called a probability function, a function that describes all the values that the random variable can
take and the probability associated with each.

## Skewed distribution

Probability distribution in which an unequal number of observations lie below and
above the mean.

## Standardized normal distribution

A normal distribution with a mean of 0 and a standard deviation of 1.

## Continuous Compounding

The process of continuously adding interest to a principal plus
interest amount and calculating the resulting compound amount

## Discrete Compounding

The process of adding interest to a principal plus interest amount
and calculating the resulting compound amount at specific
intervals, such as monthly or annually

## Probability Distribution

A list of all possible outcomes and the chance of each outcome
occurring ## compounding period

the time between each interest computation

## distribution cost

a cost incurred to warehouse, transport, or deliver a product or service

## probability distribution

a range of possible values for which each value has an assigned likelihood of occurrence

## Normal (bell-shaped) distribution

In statistics, a theoretical frequency
distribution for a set of variable data, usually represented by a bell-shaped

## Distribution center

A branch warehouse containing finished goods and service
items intended for distribution directly to customers.

## Distribution inventory

Inventory intended for shipment to customers, usually
comprised of finished goods and service items.

## compounding

When an asset generates earnings that are then reinvested and generate their own earnings.