What is a tracho?

Transche is part or tranhes of questions of securities with orders that give the buyer the right, but not an obligation, to buy specific security. If the offer includes two or more tranches, some or all tranches may contain an order. Transport authorization offer may have trance with different maturity or different levels of risk. Transches are paid in the prescribed priority order when the maturity date occurs.

TRANCHE is part of a larger range of securities. The offers are divided into tranches so that, for example, parts of the bond problem can have different maturity data. This means that the problem does not remain at once, which gives the issuer more flexibility in paying bonds at maturity. Various tranhes will have different risk of risk for the investor. The 20 -year -old trance has a greater risk than five years of the same security.

The order is a derivative security that is issued with other shares or bonds, and gives the buyer the right to buy shares in the future for urAny price. Stock orders (also called commands to purchase shares) are often issued in conjunction with preferred shares or bonds to make the purchase for investors more attractive. The buyer is not obliged to buy security, but has the opportunity to do so if the price is attractive. If the buyer decides not to use the order by purchasing security within the set time frame, the order simply expires.

Sometimes the menu is created in two or more tranches that allows further funding after the first trance is completed. The Company can create a stock offer and at the same time to reserve the right to offer additional shares in the second trance, unless the first tranše provides enough capital, or if further funding is needed in a relatively short period of time. The second trance will often include the Tranše command to make the purchase more attractive. For the TRANCHE command, the price may be for the price or can be included in all shares in trance.

Transche's order is a sophisticated investment and timeThis is used by companies looking for risky capital. This type of investment requires significant DUE diligence by the investor. It is important to understand a company that offers offer and risks.