Credit Card
A credit card is a system of payment that lets the cardholder to pay for products and services based on the promise to pay for them. The credit card is based on the revolving...
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Covered Calls
A trader can create a covered call by selling the call options on a security already owned by him. For example, Trader Z owns 1,000 shares of security ABC and then proceeds to sell...
Credit Spread (Options)
Credit spread is also known as net credit spread. A credit spread occurs when two options of the same class are simultaneously bought and sold. These two options are also required to have same...
Whole Life Insurance
Whole life insurance refers to a life insurance policy that is valid for the insured’s entire life. In most cases, whole life insurance requires the payment of premium every year. In Commonwealth of Nations,...
Home Equity Loan
Home equity loan refers to a loan in which the borrower utilizes the equity or ownership in his/her home as a collateral. Borrowers generally take out home equity loans to fund significant expenses like...
Term Deposit
Term Deposit refers to a deposit kept with a bank for a fixed term. The maturities for term deposit range from between a month to a few years. Once a customer buys a term...
Federal Student Loan Consolidation
In the U.S., the Federal Direct Student Loan Program (FDLP) includes consolidation loans that let students to combine Stafford Loans, PLUS Loans, and Federal Perkins Loans into one single debt. This scheme helps reducing monthly repayments and increases the...
Put Option
A put or put option is a deal between two parties to exchange an underlying instrument, at a predetermined price (the strike), by a specified date (also referred to as a maturity date). While one party, the buyer of...
Currency carry trade
The carry of an asset is the return obtained from holding it. It could be an earning or a cost. Cost of Carrying Inventory The Cost of Carrying Inventory is expressed as a percentage...
Covered call
Definition Covered call writing is either the simultaneous purchase of stock and the sale of a call option or the sale of a call option against a stock currently held by an investor. Generally,...
Group Term Life Insurance
Definition: It’s that type of insurance where the coverage is offered to a group of people. This coverage offers benefit to the insured group even if one of the beneficiaries dies during the specified...
Credit Card Balance
Definition: A credit card balance is the amount of charges, or lack of that, payable to the credit card company. Typically, it may take about 24 hours for the credit card company to update...
Credit Balance
Definition: While maintaining a margin account, the amount of funds which are deposited in the customer’s account after a successful execution of a short sale order is called as credit balance. The credit balance...
Real Estate Investment Trust
A real estate investment trust or REIT is a financial product that is traded like a stock on the major stock exchanges and invests in real estate market directly, either through equities or mortgages....
Call Option
A call option also referred to as simply call is a financial transaction between two parties, a buyer and seller for this type of option trading. In this contract, the buyer has a right...