HomeDefinitionsCompareDebt DifferentialThe financial definition for Differential:A small charge, typically 1/8 point, added to the purchase price and subtracted from the selling price by the dealer for odd-lot quantities. Similar MatchesDifferential swapDifferential swapSwap between two LIBOR rates of interest, e.g., yen LIBOR for dollar LIBOR Payments are in one currency. Forward differentialForward differentialAnnualized percentage difference between spot and forward rates. Tax differential view (of dividend policy)Tax differential view (of dividend policy)The view that shareholders prefer capital gains over dividends, and hence low payout ratios, because capital gains are effectively taxed at lower rates than dividends. Further SuggestionsYield differential or pickupClick to compare definitions of Differential Click to view definitions beginning di |