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Investments glossary

Senior Bank Loan

A senior bank loan is a debt financing obligation issued to a company or an individual by a bank or similar financial institution that holds legal claim to the borrower’s assets above all other debt obligations. Because it is considered senior read more

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Investments glossary

Cottage Industry

A cottage industry is a small-scale, decentralized manufacturing business often operated out of a home rather than a purpose-built facility. Cottage industries are defined by the amount of investment required to start, as well as the number of people read more

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Investments glossary

Baptism by Fire

Baptism by fire is a phrase commonly used to describe a person or employee who is learning something the hard way through a challenge or difficulty. In many cases, someone who starts a new job must undergo a baptism by fire, meaning they must immediately read more

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Investments glossary

Incentive Stock Options (ISOs)

An incentive stock option (ISO) is a company benefit that gives an employee the right to buy stock shares at a discounted price with the added allure of a tax break on the profit. The profit on incentive stock options is taxed at the capital gains read more

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Investments glossary

L Share Annuity Class

The L share annuity class is a version of a variable annuity that starts paying out earlier than most but has relatively high administrative costs. It is designed for investors who want to be able to begin withdrawing funds from an account after a read more

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Investments glossary

Spot Price

The spot price is the current price in the marketplace at which a given asset—such as a security, commodity, or currency—can be bought or sold for immediate delivery. While spot prices are specific to both time and place, in a global economy the read more

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Investments glossary

Option Chain

An option chain, also known as an option matrix, is a listing of all available option contracts, both puts and calls, for a given security. It shows all puts, calls, strike prices, and pricing information for a single underlying asset within a given read more

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Investments glossary

Guppy Multiple Moving Average – GMMA

The Guppy Multiple Moving Average (GMMA) is a technical indicator that identifies changing trends, breakouts, and trading opportunities in the price of an asset by combining two groups of moving averages (MA) with different time periods. There read more

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Investments glossary

Vanishing Premium Policy

A vanishing premium policy is a form of permanent life insurance in which a consumer can use the dividends from such a policy to pay the premium. Over time, the cash value of the policy increases to the point where dividends earned by the policyholder read more

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Investments glossary

Shooting Star Definition and Applications

A shooting star is a bearish candlestick with a long upper shadow, little or no lower shadow, and a small real body near the low of the day. It appears after an uptrend. Said differently, a shooting star is a type of candlestick that forms when a read more