editor In the business world, there are several methods of taking control of a company. One method is popularly known as the bear hug. Basically, the bear hug is a hostile takeover attempt that is made in such a way that the company’s board of directors finds it impossible not to accept the offer. Here is … Read more
The term traunch refers to a series of payments that are to be made periodically only if certain goals are reached. A practical example of the use of this concept can be found in start-up campaigns, where split fundraisers are often made and continued only if a certain goal is reached. This particular staggered methodology … Read more
A centralized market is a type of national or local market in which securities and financial instruments are traded at fixed prices without any influence from competing markets. The quoted prices of securities shown on the market represent the only price available to traders seeking to buy or sell a particular security. The main centralized … Read more
Short sales and put options are two bearish investment methodologies. The concept of a bearish position can be summarized by saying that the investor will go into profit the moment the price of the security on which he is positioned falls. Difference between Short Selling and Put Options Although both Short Selling and Put Options … Read more
In finance, the rule of 72 and the rule of 70 are methods for estimating the doubling time of an investment. The number referred to in the rule is divided by the interest rate over the period (usually years) to obtain an approximation of the number of periods required for doubling. Although modern scientific calculators … Read more
The term normal course issuder bid, of Canadian origin, refers to the repurchase of one’s own shares by a public company in order to cancel them. It is thus a repurchase of own shares that is used by publicly traded companies in Canada. The NCIB is a practice used mainly for the following reasons: To … Read more
The Quadruple Witching Day is when Stock Index Futures, Individual Stock Futures, Stock Index Options, and Stock Options expire simultaneously. While options on stocks and stock indexes expire on the third Friday of each month, all four contract types expire together on the third Friday of the month that closes each quarter: thus, on the … Read more
The term Sell to Open, in the world of financial markets, refers to the moment when a trader decides to open a sell “short position” on a given option. The sale of a financial instrument, especially with reference to derivative instruments, results in the opening of a selling position (or short position). The short position … Read more
Theta measures the time decay (time decay) of options. Theta can also be defined as the excess of an option’s price over its intrinsic value, slowly affecting the value of options. in practical terms, it tells us the gain (or loss) we make as time passes. Theta and time decay in options Options have a … Read more
Silver certificates were U.S. currencies issued from 1878 to 1964. Prior to 1968, these certificates were redeemable for the face value of the certificate in silver coins or the equivalent in silver bullion. After 1968, the federal government discontinued the practice of redeeming silver and began allowing owners to redeem certificates only for Federal Reserve … Read more
