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Investments glossary

J-Curve

A J-curve is a trendline that shows an initial loss immediately followed by a dramatic gain. In a chart, this pattern of activity would follow the shape of a capital J.

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Investments glossary

Relief Rally Definition

A relief rally is a respite from market selling pressure that results in an increase in securities prices. Sometimes it happens when expected negative news ends up being positive, or it’s less severe than expected.

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Investments glossary

Negative Confirmation

Negative confirmation is a letter or document requesting that the recipient should only respond to the sender if there were an issue with the contents of the message or the recipient wanted to opt out of the event the letter had addressed.

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Investments glossary

Out-of-Pocket Maximum

What does out-of-pocket maximum mean? This number—also called the out-of-pocket limit— is the most a health insurance policyholder will pay each year for covered healthcare expenses. These limits help policyholders control risk by capping their read more

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Investments glossary

Short Call

A short call option position in which the writer does not own an equivalent position in the underlying security represented by their option contracts. Making a short call is an options trading strategy in which the trader is betting that the price read more

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Investments glossary

Money Purchase Pension Plan

A money purchase pension plan is an employee retirement benefit plan that resembles a corporate profit-sharing program.1 It requires the employer to deposit a set percentage of the participating employee’s salary in the account every year. read more

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Investments glossary

Umbrella Personal Liability Policy

An umbrella personal liability policy is extra liability coverage which goes beyond the limits of the insured’s home, auto or other liability coverage. It provides an additional layer of security to those who are at risk of high loss if they injure read more

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Investments glossary

Tick Size Definition

Tick size is the minimum price movement of a trading instrument. The price movements of different trading instruments vary, with their tick sizes representing the minimum amount they can move up or down on an exchange. In U.S. markets, the tick size read more

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Investments glossary

Buyback

A buyback, also known as a share repurchase, is when a company buys its own outstanding shares to reduce the number of shares available on the open market. Companies buy back shares for a number of reasons, such as to increase the value of remaining shares read more

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Investments glossary

Long-Run Average Total Cost (LRATC)

Long-run average total cost (LRATC) is a business metric that represents the average cost per unit of output over the long run, where all inputs are considered to be variable and the scale of production is changeable. The long-run average cost curve read more