Categories
Investments glossary

Wash Trading

Wash trading is a process whereby a trader buys and sells a security for the express purpose of feeding misleading information to the market. In some situations, wash trades are executed by a trader and a broker who are colluding with each other, and read more

Categories
Investments glossary

Serial Correlation

Serial correlation is the relationship between a variable and a lagged version of itself over various time intervals. Repeating patterns often show serial correlation when the level of a variable affects its future level. In finance, this correlation read more

Categories
Investments glossary

Baby Boomer

Baby boomer is a term used to describe a person who was born between 1946 and 1964. The baby boomer generation makes up a substantial portion of the world’s population, especially in developed nations. It represents nearly 20% of the American read more

Categories
Investments glossary

Transfer on Death (TOD)

The transfer on death designation lets beneficiaries receive assets at the time of the person’s death without going through probate. This designation also lets the account holder or security owner specify the percentage of assets each designated read more

Categories
Investments glossary

Next of Kin

Next of kin refers to a person’s closest living blood relative. The next-of-kin relationship is important in determining inheritance rights if a person dies without a will and has no spouse and/or children. The next of kin may also have responsibilities read more

Categories
Investments glossary

Long Straddle

A long straddle is an options strategy where the trader purchases both a long call and a long put on the same underlying asset with the same expiration date and strike price. The strike price is at-the-money or as close to it as possible. Since calls read more

Categories
Investments glossary

Offtake Agreement

An offtake agreement is an arrangement between a producer and a buyer to purchase or sell portions of the producer’s upcoming goods. An offtake agreement is normally negotiated prior to the construction of a production facility—such as a mine read more

Categories
Investments glossary

Wet Loan

A wet loan is a mortgage in which the funds realize at—or with the completion of—a loan application. Submission of other required documentation for closing the property, such as surveys and title searches, happens after the dispersion of funds.

Categories
Investments glossary

Nonprofit Organization (NPO)

A nonprofit organization is a business that has been granted tax-exempt status by the Internal Revenue Service (IRS) because it furthers a social cause and provides a public benefit. Donations made to a nonprofit organization are typically tax-deductible read more

Categories
Investments glossary

Written Premium

A written premium is an accounting term in the insurance industry used to describe the total amount customers are required to pay for insurance coverage on policies issued by a company during a specific period of time. Written premiums factor in read more