2007-04-06 07:12:58 · 1 answers · asked by mba_2006 1 in Education & Reference ➔ Higher Education (University +)
It would be a good idea to provide more information when you ask a question like this.
Are you talking about financial instruments? If so, then a swap is a contract between two parties where one party pays the return on one security while the other pays the return on a different one.
For example, in an Interest Rate Swap, one party pay a fixed interest rate to the other -- while the second guy pays a floating rate to the first. Payments are netted out, so only one really pays. For an Equity Swap, one person would pay the total return on a stock to the other guy, and get back floating rate interest payments in return.
If you aren't asking about finance -- it could be one of thise trends from the 1970s where men swap their wives with somone else -- but just for the evening.
2007-04-06 07:24:09 · answer #1 · answered by Ranto 7 · 0⤊ 0⤋