Simple interest and Stock exchange alternative trading service: Difference between pages

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A method of calculating and quoting interest which takes no account of interest on interest.
(SEATS). A computerized system used on the London Stock Exchange for trading on the Alternative Investment Market and for stocks of restricted liquidity. A screen-based service showing current prices and orders, it runs alongside the Stock Exchange Automated Quotations System (SEAQ).
So the total interest for a given period is calculated simply by multiplying or dividing the simple annual interest rate by the relative length of the interest period.


Simple interest is the usual basis of quotation for periods up to and including one year.
For example, when the daily rate of GBP interest is quoted as 5.11%, this means that the amount of interest per day is given by the quoted simple annual rate of 5.11% multiplied by 1/365 (to reflect one day in a 365 day year):
= 5.11% x 1/365
= 0.014% per day.


== See also ==
== See also ==
* [[Compound interest]]
* [[Alternative Investment Market]]
* [[Interest]]
* [[Stock exchange automated quotation system]]
* [[LIBOR]]
* [[Money market]]
* [[Periodic rate of interest]]
   
   



Revision as of 14:20, 23 October 2012

(SEATS). A computerized system used on the London Stock Exchange for trading on the Alternative Investment Market and for stocks of restricted liquidity. A screen-based service showing current prices and orders, it runs alongside the Stock Exchange Automated Quotations System (SEAQ).


See also