Finance

Horizontal Spread

Horizontal Spread

A horizontal spread (more commonly referred to as a calendar spread) is a form of spread of options involving the purchasing of the same underlying stocks at the same price, but with different expiry dates. The objective is typically to benefit from changes in unpredictability over the long haul .....

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Risk Tolerance

Risk Tolerance

The degree of uncertainty in investment returns is risk tolerance; it is the capacity of an investor to mentally tolerate the prospect of losing money on an investment. The amount of risk an investor can afford to take is calculated by many factors. A significant factor of investing is risk toler.....

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Exchange-Traded Derivatives

Exchange-Traded Derivatives

An exchange-traded derivative is a listed financial agreement that trades on a regulated exchange. It offers an overview of the globally listed markets for futures and options, and how individual exchanges and products respond to a new operating environment marked by rapid, almost constant, chang.....

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Exchange-Traded Notes (ETN)

Exchange-Traded Notes (ETN)

“Exchange-traded” means the buying and selling of ETNs on a national stock exchange, whereas “note” refers to the fact that an ETN is simply a debt. A senior, unsecured, unsubordinated debt protection issued by an underwriting bank is an exchange-traded note (ETN). ETNs, similar to other .....

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Direct Stock Purchase Plan (DSPP)

Direct Stock Purchase Plan (DSPP)

A direct stock purchase plan (DSPP) enables investors to purchase directly from the company the shares of a company’s stock. It is a way for individuals, rather than through a brokerage, to buy stocks directly from a company. For investors to acquire stock of a specific business over time, .....

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Stock Appreciation Rights (SARs)

Stock Appreciation Rights (SARs)

Stock appreciation rights (SARs) refer to the right to obtain compensation equal to a rise in the common stock price of the company over the base price or an appreciation of the equity securities currently trading in the public sector. When the stock price of the company increases, SARs are lucra.....

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Depository Transfer Check (DTC)

Depository Transfer Check (DTC)

A Depository Transfer Check (DTC) is used by a designated collection bank to deposit a corporation’s daily receipts from various locations, and it is also known as a depository transfer draft. It is easy to use a depository transfer check to ensure better cash management for all its locatio.....

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Validation Code

Validation Code

A validation code also referred to as a CVV, CV2, or CVV2 code is a sequence of three or four numbers issued on the front or rear side of a debit/credit card. It is an additional layer of protection that when making payments online or over the phone, protects clients from fraud. Most MasterCard g.....

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Employee Savings Plan (ESP)

Employee Savings Plan (ESP)

A pooled investment portfolio that is sometimes matched by an employer is an employee savings plan (ESP). It is provided by an employer who requires workers to set aside a portion of their pre-tax income for retirement savings or other long-term purposes, such as paying for college tuition or buy.....

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Employee Stock Purchase Plan (ESPP)

Employee Stock Purchase Plan (ESPP)

A tax-efficient Employee Stock Purchase Plan (ESPP) refers to a stock scheme that requires participating employees to purchase the stock of their company at a reduced price. Employees contribute to the scheme by payroll deductions that are generated between the date of the bid and the date of pur.....

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Calendar Spread

Calendar Spread

A calendar spread also referred to as a time spread or horizontal spread, is a spread of options or futures generated by simultaneously entering a long and short position at the same strike price but with different settlement months on the same underlying commodity. In the case of futures contrac.....

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Vertical Spread

Vertical Spread

A vertical spread is a trading strategy in options trading that involves trading two options at the same time; it is the most fundamental spread of options. This includes the simultaneous purchase and sale, but at different strike rates, of options of the same form (puts or calls) and expiration......

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