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Investments glossary

Maturity Date

The maturity date is the date on which the principal amount of a note, draft, acceptance bond or other debt instrument becomes due. On this date, which is generally printed on the certificate of the instrument in question, the principal investment read more

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Investments glossary

Logistics

Logistics refers to the overall process of managing how resources are acquired, stored, and transported to their final destination. Logistics management involves identifying prospective distributors and suppliers and determining their effectiveness read more

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Investments glossary

Request for Proposal (RFP)

A request for proposal (RFP) is a business document that announces and provides details about a project, as well as solicits bids from contractors who will help complete the project. Most organizations prefer using RFPs, and, in many cases, governments read more

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Investments glossary

Graduate Management Admission Test (GMAT)

The GMAT, which stands for the graduate management admission test, is a standardized test intended to measure a test taker’s aptitude in mathematics, verbal skills, and analytical writing. The GMAT is most commonly used as the primary exam reviewed read more

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Investments glossary

Joint Venture (JV)

A joint venture (JV) is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity.

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Investments glossary

Vanishing Premium

A vanishing premium is a fee paid for an insurance policy until the cash value of the policy grows enough to cover the fee.

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Investments glossary

Monte Carlo Simulation Definition

Monte Carlo simulations are used to model the probability of different outcomes in a process that cannot easily be predicted due to the intervention of random variables. It is a technique used to understand the impact of risk and uncertainty in prediction read more

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Investments glossary

Underlying

Underlying, when referred to in reference to equity trading, is the common stock that must be delivered when a warrant is exercised, or when a convertible bond or convertible preferred share is converted to common stock. The price of the underlying read more

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Investments glossary

Opening Cross

Opening cross refers to a method the Nasdaq uses to determine the opening price for an individual stock. This method accumulates data on the buy and sell interest among market participants for a particular security two minutes before the market open. read more

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Investments glossary

3-6-3 Rule

The 3-6-3 rule is slang that refers to an unofficial rule in the banking industry that alludes to the condition of being noncompetitive and simplistic.