what is the "credit balance"?
Category: glossary by Simeon W. From United Kingdom
In a margin account, the amount of funds deposited in the customer's account following the successful execution of a short sale order. The credit balance amount includes both the proceeds of the short sale itself and the specified margin amount the customer is required to deposit under Regulation T. In the case of a short sale, an investor essentially borrows equity shares from his or her brokerage and then sells the shares on the open market, hoping to buy them back off the open market for a lower price at a later date and then return them to the brokerage, pocketing the excess cash left over. When the shares are first short sold, the investor receives the cash amount of the sale in his or her margin account. This amount, plus the specified margin amount which must be deposited by the investor under Reg T, comprises the credit balance. It must be maintained in the investor's margin account as a form of assurance that the shares can be repurchased from the market and returned to the brokerage house.
please tell me what a "margin call" is
Category: glossary by M. Dale from United States
the "margin call " is A request from a broker or dealer for additional funds or other collateral to guarantee performance on a position that has moved against the customer.
please define "bellwether"
Category: glossary by A. Gill from Dublin, Ireland
A leading indicator of trends. A bellwether stock is a stock that is used to gauge the performance of the market in general. General Motors was an example of a bellwether stock, hence the saying "What's good for GM is good for America."
please tell me what "certificate of deposit" is
Category: glossary by Janice A. From Milwaukee, United States
A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate and can be issued in any denomination. CDs are generally issued by commercial banks and are insured by the FDIC. The term of a CD generally ranges from one month to five years. A certificate of deposit is a promissory note issued by a bank. It is a time deposit that restricts holders from withdrawing funds on demand. Although it is still possible to withdraw the money, this action will often incur a penalty. For example, let's say that you purchase a $10,000 CD with an interest rate of 5% compounded annually and a term of one year. At year's end, the CD will have grown to $10,500 ($10,000 * 1.05). CDs of less than $100,000 are called "small CDs"; CDs for more than $100,000 are called "large CDs" or "jumbo CDs". Almost all large CDs, as well as some small CDs, are negotiable.
do you know what "entity-purchase agreement" is?
Category: glossary by S. R. From El Cajon, United States
A type of business succession plan that is used by companies that have more than one owner. The plan involves having the company take out an insurance policy on the lives of owners in the amount equal to each owner's interest. In the event of death, the amount collected by the company from the insurance, which is equal to the deceased owners stake, is used to pay the deceased's estate for its share of the business. The advantage of this type of succession plan is that the owners know their respective stakes in the company will be paid out to their estates, and that the company will continue to be run by the other partners. Having this type of succession plan, (which is paid for by the company) allows the owners to avoid any out-of-pocket expenses while also looking after their families in the event of death.
please define a "housing bubble"
Category: glossary by Cierra K. From United States
"housing bubble " is A run-up in housing prices fueled by demand, speculation and the belief that recent history is an infallible forecast of the future. Housing bubbles usually start with an increase in demand (a shift to the right in the demand curve), in the face of limited supply which takes a relatively long period of time to replenish and increase. Speculators enter the market, believing that profits can be made through short-term buying and selling. This further drives demand. At some point, demand decreases (a shift to the left in the demand curve), or stagnates at the same time supply increases, resulting in a sharp drop in prices - and the bubble bursts. Traditionally, housing markets are not as prone to bubbles as other financial markets due to large transaction and carrying costs associated with owning a house. However, a combination of very low interest rates and a loosening of credit underwriting standards can bring borrowers into the market, fueling demand. A rise in interest rates and a tightening of credit standards can lessen demand, causing a housing bubble to burst. Other general economic and demographic trends can also fuel and burst a housing bubble.
Would you help a guy who's in need of a forex trading system with reliable being around?
Category: general by G. D. From United Kingdom
If you seek forex trading system that has the biggest experience, we really recommend you to head for "retailfx.com". Retailfx.com was established as a ECN forex server. Retailfx.com won the acclaimed the status of "Forexland's No 1 Product ".
what is "disparity index"?
Category: glossary by X. Grimes from Luxembourg, Luxembourg
a "disparity index " is A technical indicator that measures the relative position of the most recent closing price to a selected moving average and reports the value as a percentage. A value greater than zero suggests that the asset is gaining upward momentum, while a value less than zero can be interpreted as a sign that selling pressure is increasing. Extreme values of this indicator can be a very useful tool for contrarian investors to foretell periods of exhaustion. Once the price is excessively pushed in one direction, there are very few investors to take the other side of the transaction when the participants wish to close their position, ultimately leading to a price reversal. Similar to the ROC indicator, important signals are generated when the indicator crosses over the zero line because it is an early signal that momentum is building.
Which forex site offers most rapid connection, in your opinion?
Category: technical by H. U. From United States
We think the best place for your purpose is "UFX bank". Members frequently inform us how they're amazed with the communication with the system's server. You don't find many of the common communication disturbances you see surfing huge servers. It's no trouble at all to install the forex program, and the communication is at all times intact.
what is "covered warrant"?
Category: glossary by O. E. From United Kingdom
the "covered warrant " is A type of warrant that allows the holder to buy or sell a specific amount of equities, currency or other financial instruments from the issuer, usually a bank or a similar financial institution, at a specific price and time. The main differences between normal warrants and covered warrants are: 1. Covered warrants can have a wide variety of underlying financial products. Normal warrants only have a company's stock as their underlying financial product. 2. Covered warrants are only issued by financial institutions. Normal warrants are only issued by the company that issued the underlying equity. 3. Covered warrants can have a variety of exercise prices depending on the conditions set forth by each issue. Normal warrants generally have only one exercise price. 4. Covered warrants allow the warrant holder to buy or sell the underlying asset. Normal warrants allow the warrant holder only to buy the underlying equity.