Mortgage life insurance
Mortgage life insurance is purchased in order to guarantee that any outstanding mortgage debt you may have at the time of your death will be paid off in full. Types of Mortgage Life Insurance...
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Critical insurance
Critical Illness Insurance is the financial safety net should you suffer from a critical illness. Critical illness coverage provides benefits that are paid upon the diagnosis of a critical illness such as cancer, heart...
Stock purchase program
Participating in an employee stock purchase plan (ESPP) can be an important part of employee’s overall financial strategy. ESPPs enable you to invest in your company by purchasing shares of your company’s stock, usually...
Adjustable rate mortgage (ARM)
Adjustable-rate mortgages (ARMs) are loans with interest rates that change. ARMs may start with lower monthly payments than fixed rate mortgages An adjustable-rate mortgage differs from a fixed-rate mortgage in many ways. Most importantly,...
Viatical settlement
A viatical settlement is an arrangement between the owner of an insurance policy (the viator) and a third party (the provider). The provider negotiates with the viator for the purchase of his/her life insurance...
Troubled assets relief program
Financial turmoil began in August 2007 when asset-backed securities, particularly those backed by subprime mortgages, suddenly became illiquid and fell sharply in value as an unprecedented housing boom turned to a housing bust. The...
Annual percentage yield (APY)
Whether you are borrowing money to make a large purchase or depositing your money in a financial institution so you can make money (e.g., savings account, certificate of deposit), you will need a basic...
London interbank offered rate
The London Interbank Offered Rate is a daily reference rate based on the interest rates at which banks borrow unsecured funds from other banks in the London wholesale money market (or interbank market). Alternatively,...
Financial Crisis
The definition of a financial crisis is applied broadly to various situations in which some loan companies or assets suddenly lose a large part with their value. From the 19th and early 20th centuries,...
Commodities Exchange
A commodities exchange is an exchange where commodities and derivatives merchandise is traded. Most commodity markets around the world trade in raw materials and agricultural products (like wheat, barley, sugar, maize, cotton, cocoa, coffee,...
Public Finance
Public finance’s purview is generally considered a three fold thing. Every component of public finance is about how the government affects something, but the sections it affects are different from one another. For one,...
Hedge
To hedge is to take a futures position that is equal and opposite to a position held in the cash market. The objective is to mitigate the risk of an adverse move in prices....
Financial regulation
Outline of the U.S. financial regulatory system Federal Reserve System The Federal Reserve System, often referred to as the Federal Reserve or simply “the Fed,” is the central bank of the United States. It...
Credit derivative
Overview of Credit Derivatives A credit asset is the extension of credit in some form: normally a loan, accounts receivable, installment credit or financial lease contract. Every credit asset is a bundle of risks...
Options
An option in finance is a financial derivative product that represents a contract sold by the option writer to another party (option holder). An option contract gives the buyer the right –not the obligation...