An asset allocation fund is a fund that provides investors with a diversified portfolio of investments across various asset classes. 

An asset allocation fund is a fund that provides investors with a diversified portfolio of investments across various asset classes. Investors can access asset allocation funds by purchasing shares in mutual funds or exchange traded funds (ETFs).
Asset allocation funds were developed from modern portfolio theory. Investors seeking additional investing categories beyond just 60/40 will find many options, including conservative allocation funds, moderate allocation funds, and aggressive alloca­tion funds. Some of the most common asset allocation funds include balanced funds and target-date funds. Overall, most funds will actively monitor and allocate or rebalance securities in response to evolving market conditions and economic environments.
Below are examples of some of the investment industry’s top asset allocation funds.
**The iShares Core Aggressive Allocation ETF (AOA)**:

Asset Allocation Fund

The average annual return (AAR) measures the money made or lost by a mutual fund. Read about AAR and how to choose the best mutual fund investment.

The average annual return (AAR) is a percentage used when reporting the historical return, such as the three-, five-, and 10-year average returns of a mutual fund. Before making a mutual fund investment, investors frequently review a mutual fund's average annual return as a way to measure the fund's long-term performance. The average annual return (AAR) is a percentage used when reporting the historical return, such as the three-, five-, and 10-year average returns of a mutual fund. The average annual return (AAR) is a percentage that represents a mutual fund's historical average return, usually stated over three-, five-, and 10 years. Investors considering a mutual fund investment will often review the AAR and compare it with other similar mutual funds as part of their mutual fund investment strategy.

Average Annual Return (AAR)

The Automated Customer Account Transfer Service (ACATS) moves securities from one brokerage to another.

The Automated Customer Account Transfer Service (ACATS) is a system that facilitates the transfer of securities from one trading account to another at a different brokerage firm or bank. The Automated Customer Account Transfer Service (ACATS) is a system that facilitates the transfer of securities from one trading account to another at a different brokerage firm or bank. The ACATS system is initiated when the new receiving firm has the client sign the appropriate transfer documents. If the information matches between both the delivering firm and the receiving firm, the ACATS process can begin. Clients can transfer all publicly traded stocks, exchange-traded funds (ETFs), cash, bonds, and most mutual funds through the ACATS system.

Automated Customer Account Transfer Service (ACATS)

An accredited investor has the financial sophistication and capacity to take the high-risk, high-reward path of investing in unregistered securities sans certain protections of the SEC.

Accredited Investors – Updated Investor Bulletin

§230.501  Definitions and Terms Used in Regulation D

Final Rule: Amending the “Accredited Investor” Definition

SEC Modernizes the Accredited Investor Definition

Investor Bulletin: Private Placements Under Regulation D

Table of Contents
What Is an Accredited Investor?
Understanding Accredited Investors
Requirements
Purpose of the Requirements The SEC defines an accredited investor as either:
1.  an individual with gross income exceeding $200,000 in each of the two most recent years or joint income with a spouse or partner exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year.
2.  a person whose individual net worth, or joint net worth with that person's spouse or partner, exceeds $1,000,000, excluding the person's primary residence. Accredited investors are allowed to buy and invest in unregistered securities as long as they satisfy one (or more) requirements regarding income, net worth, asset size, governance status, or professional experience.
Unregistered securities are considered inherently riskier because they lack the normal disclosures that come with SEC registration.
Accredited investors are legally authorized to purchase securities that are not registered with regulatory authorities like the SEC. When companies decide to offer their shares to accredited investors, the role of regulatory authorities is limited to verifying or offering the necessary guidelines for setting benchmarks to determine who qualifies as an accredited investor. While this individual fails the income test, they are an accredited investor according to the test on net worth, which cannot include the value of an individual's primary residence.

Accredited Investor

Accrual rate refers to the rate of interest that is added to the principal of a financial instrument between cash payments of that interest. 

An accrual rate is the interest rate applied to a financial obligation, such as bonds, mortgages, and credit cards. You can calculate the daily accrual rate on a financial instrument by dividing the interest rate by the number of days in a year—365 or 360 (some lenders divide the year into 30 day months)—and then multiplying the result by the amount of the outstanding principal balance or face value. An accrual rate is the interest rate applied to a financial obligation, such as bonds, mortgages, and credit cards. However, the accrual rate for paid vacation time and pensions is the rate at which vacation time or benefits are earned. For example, in the case of bonds, since a bond’s price is the sum of all its future cash flows—including principal and interest, the price at which it changes hands will include any interest accrued (but not yet paid.)

Accrual Rate

An accumulated dividend is a dividend on a share of cumulative preferred stock that has not yet been paid to the shareholder.

An accumulated dividend is a dividend on a share of cumulative preferred stock that has not yet been paid to the shareholder. However, if it is a participating policy, which pays regular dividends to the policyholder, the accumulated dividends would be added to and increase the death benefit that is paid. An accumulated dividend is a dividend on a share of cumulative preferred stock that has not yet been paid to the shareholder. An accumulated dividend is a dividend on a share of cumulative preferred stock that has not yet been paid to the shareholder. A cumulative preferred stock allows the investor to earn dividends regardless of the company's ability to pay them immediately or in the future.

Accumulated Dividend

Accumulation means increasing the size of a position. It can also refer to an asset that is heavily bought and to the growth of a portfolio over time.

Accumulation Distribution Indicator – 4 Entry Triggers and Trade Examples

Accumulation/Distribution Indicator (A/D): An indicator used to analyze the extent of accumulation (demand) and distribution (supply) of a stock

Table of Contents
What Is Accumulation?
Understanding Accumulation
Example of Accumulation
Accumulation/Distribution Indicator
Special Considerations
Accumulation FAQs The accumulation/distribution (A/D) indicator, also known as the accumulation/distribution line, is an indicator that shows whether a stock is being accumulated or distributed. Conversely, when the A/D line increases but the price follows a bullish price action, this is an indication of a bearish A/D divergence. When the A/D line decreases but the price follows a bearish price action, this is an indication of a bullish A/D divergence. In finance, accumulation more specifically means increasing the position size in one asset, increasing the number of assets owned/positions, or an overall increase in buying activity in an asset.

Accumulation

An accumulation period is the phase in an investor's life when they build up their savings and investment portfolio to save for retirement. 

H.R.1994—Setting Every Community Up for Retirement Enhancement Act of 2019

An accumulation period (or accumulation phase) is the segment of time in which contributions to an investment are made regularly, or premiums are paid on an insurance product, such as an annuity, intended to be used for retirement purposes. A life insurance policy is an example of a fixed annuity in which an individual pays a fixed amount each month for a predetermined time period (typically until age 59½) and receives a fixed income stream during their retirement years.
For instance, say that an annuity guarantees $1,000 of monthly income for the lifetime of the annuity holder from age 65 onwards. In the context of a deferred annuity, the accumulation period is the period of time when the annuitant is making contributions to the annuity and building up the value of their annuity account. An accumulation period (or accumulation phase) is the segment of time in which contributions to an investment are made regularly, or premiums are paid on an insurance product, such as an annuity, intended to be used for retirement purposes. In a deferred annuity, the greater your contributions are during the accumulation period and the longer the accumulation period is, the greater your income stream will be once you begin the annuitization phase.

Accumulation Period

An adjustment index is a formula or numerical value that is used to modify or improve a data set.

The term adjustment index refers to a modification that is applied to a data set in order to make it a better representation of external conditions. This adjustment index allowed the UNDP each year to adjust the index in a way that boosts the index of human development in countries with greater equality. The term adjustment index refers to a modification that is applied to a data set in order to make it a better representation of external conditions. An adjustment index is a factor or formula used to adjust a data set or metric to reflect better measurement, new methodology, or changes to real-world conditions. Other applications of the adjustment index may be used to update an out-of-date piece of data to better represent present-day conditions.

Adjustment Index Defintition

An affirmative covenant is a type of promise or contract that requires a party to adhere to certain terms.

An affirmative covenant is a type of promise or contract that requires a party to adhere to certain terms. Affirmative covenants, which require an issuer to perform certain actions or meet specific benchmarks, may be contrasted with restrictive or negative covenants, which instead disallow the issuer from engaging in certain actions. In a March 2018 report by Mayer Brown LLP on high yield bonds by German real estate companies, the firm noted that another player, the Luxembourg-based Corestate Capital Holding S.A. (S&P: BB+) joined the group of real estate companies issuing debt. Additional examples of affirmative covenants include obligating the issuer to return the principal of a loan at maturity or maintain its underlying assets or specific collateral, such as real estate or equipment Examples of affirmative covenants include requirements to maintain adequate levels of insurance, requirements to furnish audited financial statements to the lender, compliance with applicable laws, and maintenance of proper accounting books and credit rating, if applicable.

Affirmative Covenant

An aggregate function includes values grouped together to form a single value that provides a summary of the data list.

An aggregate function is a mathematical computation involving a range of values that results in just a single value expressing the significance of the accumulated data it is derived from. Obviously, there are many aggregate functions in business—aggregate costs, aggregate income, aggregate hours, and so on. Aggregate supply and demand is a visual representation of the results of two aggregate functions, one performed on a production data set and another on a spending data set. The aggregate demand curve is produced out of a similar spending data set and shows the aggregate number of the subsets plotted over a period to produce a curve showing changes over the time series. The aggregate function simply refers to the calculations performed on a data set to get a single number that accurately represents the underlying data.

Aggregate Function

American Association of Individual Investors (AAII) is a nonprofit investor education organization with local chapters throughout the United States.

The American Association of Individual Investors (AAII) is an investor education organization. The organization’s website works on a freemium model, providing some investment information for free, but reserving most of the group’s materials, including a monthly journal, mutual fund analysis, stock screeners, and model portfolios, for dues-paying members only. Specifically, dividend growth investors, who favor investments that deliver ever-increasing dividend income, may find limited value in the stock screens, which prioritize price performance and total return and virtually ignore dividend payments. AAII regularly touts its portfolios’ dramatic performance results in marketing materials, but these model portfolios may only be available to the public after they’ve made their noteworthy gains. For example, AAII’s screens don’t consider transaction fees when calculating percentage return, so a screen that represents frequent buying and selling will show a return higher than what an investor would receive in practice.

American Association of Individual Investors (AAII)

An investment analyst is an expert at evaluating financial information, typically for the purpose of making buy, sell, and hold recommendations for securities.

An investment analyst is a financial professional with expertise in evaluating financial and investment information, typically for the purpose of making buy, sell and hold recommendations for securities. An investment analyst is a financial professional with expertise in evaluating financial and investment information, typically for the purpose of making buy, sell and hold recommendations for securities. A buy-side analyst is primarily a portfolio management analyst creating investment research and investment recommendations for portfolios with large amounts of capital such as mutual funds, hedge funds and insurance companies. Brokerage firms, investment advisors and mutual fund companies hire investment analysts to prepare investment research for multiple purposes. An investment analyst is a financial professional with expertise in evaluating financial and investment information.

Investment Analyst

The term annual basis has multiple applications in finance. In each sense, it refers to an observed figure over the course of the year. 

The term annual basis has multiple applications in finance. Say a bond pays 5% per year interest, the rate is quoted on an annual basis, and assuming the bond has 10 years left to maturity, it will pay that 5% out each year on an annual basis as well. For instance a salary of $60,000 per year is not only quoted on an annual basis, but also occurs each year on an annual basis. For example, if Angela wanted to establish a household budget for the year and it was April 1, she could look at how much money her family had spent on groceries in January, February and March to estimate what her family's grocery costs would be on an annual basis. In options markets, volatility is calculated on an annual basis, and interest payments on deposits and loans (including bonds or other fixed income instruments) are conveyed as annual yields.

Annual Basis

Annualizing a number means converting a short-term calculation or rate into an annual rate.

To annualize a number means to convert a short-term calculation or rate into an annual rate. Typically, an investment that yields a short-term rate of return is annualized to determine an annual rate of return, which may also include compounding or reinvestment of interest and dividends. An annualized return is similar to a run rate, which refers to the financial performance of a company based on current financial information as a predictor of future performance. To annualize a number, multiply the shorter-term rate of return by the number of periods that make up one year. To annualize a number, multiply the shorter-term rate of return by the number of periods that make up one year.

Annualize

An annualized rate is a rate of return for a given period that is less than one year but computed as if the rate were for a full year. 

An annualized rate of return is calculated as the equivalent annual return an investor receives over a given period. Calculating the annualized performance of an investment or index using yearly data uses the following data points:
P = principal, or initial investment
G = gains or losses
n = number of years
AP = annualized performance rate
The generalized formula, which is exponential to take into account compound interest over time, is:
AP = ((P + G) / P) ^ (1 / n) - 1 Thus, the annualized performance is:
AP = (($50,000 + $25,000) / $50,000) ^ (1/4) - 1
In this example, the annualized performance is 10.67 percent. Also, returns of 15 percent, -7.5 percent, 28 percent, and 10.2 percent provide the same result. The rate of return looks at gains or losses on investments over varying periods of time, while the annualized rate looks at the returns on a yearly basis.

Annualized Rate of Return

Annualized total return gives the yearly return of a fund calculated to demonstrate the rate of return necessary to achieve a cumulative return. 

Table of Contents
What Is Annualized Total Return?
How to Use It
Formula and Calculation If an investor has a cumulative return for a given period, even if it is a specific number of days, an annualized performance figure can be calculated; however, the annual return formula must be slightly adjusted to:
Annualized Return \= ( 1 \+ Cumulative Return ) 3 6 5 Days Held − 1 \\begin{aligned} &\\text{Annualized Return} = ( 1 + \\text{Cumulative Return} ) ^ \\frac {365}{ \\text{Days Held} } - 1 \\\\ \\end{aligned} ​Annualized Return\=(1+Cumulative Return)Days Held365​−1​ The annualized return of Mutual Fund A is calculated as:
Annualized Return \= ( ( 1 \+ . 0 3 ) × ( 1 \+ . 0 7 ) × ( 1 \+ . 0 5 ) × ( 1 \+ . 1 2 ) × ( 1 \+ . 0 1 ) ) 1 5 − 1 \= 1 . 3 0 9 0 . 2 0 − 1 \= 1 . 0 5 5 3 − 1 \= . 0 5 5 3 , or  5 . 5 3 % \\begin{aligned} \\text{Annualized Return} &= \\big ( (1 + .03) \\times (1 + .07) \\times (1 + .05) \\times \\\\ &\\quad \\quad (1 + .12) \\times (1 + .01) \\big ) ^ \\frac{1}{5} -1 \\\\ &= 1.309 ^ {0.20} - 1 \\\\ &= 1.0553 - 1 \\\\ &= .0553, \\text{or } 5.53\\% \\\\ \\end{aligned} Annualized Return​\=((1+.03)×(1+.07)×(1+.05)×(1+.12)×(1+.01))51​−1\=1.3090.20−1\=1.0553−1\=.0553,or 5.53%​
An annualized return does not have to be limited to yearly returns. The key difference between the Annualized Total Return and the Average Return is that the Annualized Total Return captures the effects of compounding, whereas the Average Return does not. The annualized rate of return would be:
Annualized Return \= ( 1 \+ . 2 3 7 4 ) 3 6 5 5 7 5 − 1 \= 1 . 1 4 5 − 1 \= . 1 4 5 , or  1 4 . 5 % \\begin{aligned} \\text{Annualized Return} &= ( 1 + .2374) ^ \\frac{365}{575} - 1 \\\\ &= 1.145 - 1 \\\\ &= .145, \\text{or } 14.5\\% \\\\ \\end{aligned} Annualized Return​\=(1+.2374)575365​−1\=1.145−1\=.145,or 14.5%​
Calculations of simple averages only work when numbers are independent of each other.

Annualized Total Return

Appreciation is the increase in the value of an asset over time. Check out an easy way to calculate the appreciation rate for assets and investments.

Dollar Yuan Exchange Rate - 35 Year Historical Chart

Table of Contents
What Is Appreciation?
How Appreciation Works
Calculating the Appreciation Rate
Appreciation vs. Depreciation However, in order to calculate the appreciation rate that means you need to know the initial value of the investment and the future value. For example, the term capital appreciation refers to an increase in the value of financial assets such as stocks, which can occur for reasons such as improved financial performance of the company. What might be a good appreciation rate for real estate is different than what is a good appreciation rate for a certain currency given the risk involved. The appreciate rate (or CAGR) is 4.6% \[($125,000 / $100,000)^(1/5) - 1\].
Appreciation is also used in accounting when referring to an upward adjustment of the value of an asset held on a company's accounting books.

Appreciation

Arbitrage-free valuation is the theoretical price of an asset based on the underlying real performance of the asset.

Arbitrage-free valuation is the value of an asset or financial instrument based solely on the real performance or cash flows that it generates. If the transportation, storage, marketing, and other related costs to bring each orange to market from Florida to New York come to $4, then in both places the respective market price ($1 in Florida or $5 in New York) is equal to the arbitrage-free valuation of the orange ($1 to grow the orange in Florida vs. $1 to grow the orange + $4 in associated costs to bring it to market in New York).
Now suppose that transportation costs fall due to technological improvement or lower fuel prices, and as a result, the cost of bringing a Florida orange to market in New York falls from $4 to $3. When an asset’s market price differs from its arbitrage-free value, then an opportunity for arbitrage exists by trading the asset for another asset or portfolio of assets that replicate its underlying performance or cash flows or by buying and selling the assets in different markets where the price differs. However, every act of arbitrage (every arbitrage trade) will tend to move the market price closer toward the arbitrage-free valuation, eventually eliminating the opportunity for arbitrage profits. Most markets are too efficient to allow risk-free arbitrage trades, because prices adjust to quickly eliminate any spread between market price and arbitrage-free valuation.

Arbitrage-Free Valuation

In an arm's length market, parties have no relationship or contact with one another aside from a transaction at hand.

An arm's length market describes a financial market consisting of parties that have no relationship or contact with one another aside from the transaction at hand. The expression is used specifically in contract law to arrange an agreement that will stand up to legal scrutiny, even though the parties may have shared interests (e.g., employer-employee) or are too closely related to be seen as completely independent (e.g., the parties have familial ties).
Tax laws throughout the world are designed to treat the results of a transaction differently when parties are dealing at arm's length and when they are not.
An arm's length relationship is separate from a fiduciary relationship, where the parties are not on an equal footing, but rather, power, control, and information asymmetries exist. The transactions that take place in arm's length markets are known as arm's length transactions, in which the buyers and sellers act independently and do not have any relationship to each other. An arm's length market describes a financial market consisting of parties that have no relationship or contact with one another aside from the transaction at hand. An arm's length market describes a financial market consisting of parties that have no relationship or contact with one another aside from the transaction at hand.

Arm's Length Market

The Asian Century refers to the dominant role that Asia is expected to play in the 21st century due to its burgeoning economy and demographic trends.

The Asian Century refers to the dominant role that Asia is expected to play in the 21st century due to its burgeoning economy and demographic trends. Now economists are speculating that the 21st century is destined to become the “Asian Century.”
Asian economies are on track to become larger than the rest of the world combined in 2020, in purchasing power parity (PPP) terms. The concept of the Asian Century gained credence following the rapid economic growth of China and India since the 1980s, which propelled both of them to the ranks of the world's largest economies. British bank Standard Chartered believes India and China will both leapfrog U.S. GDP by 2030 and forecasts that the world’s 10 biggest economies by then will mainly be made of current emerging markets. The Asian Century refers to the dominant role that Asia is expected to play in the 21st century due to its burgeoning economy and demographic trends.

Asian Century

Asset accumulation is building overall wealth through earning, saving, and investing money over time.

Table of Contents
What Is Asset Accumulation?
Understanding Asset Accumulation
Asset Accumulation and Retirement
Tax Breaks In the case of traditional IRAs and employer-sponsored 401(k) plans, the money contributed to the retirement account is not taxed as income at the time that it is contributed, up to annual limits. Some types of retirement plans, such as cash-balance plans, combine features of both defined-benefit and defined-contribution schemes. In the United States, retirement plans are typically classified as either defined-benefit or defined-contribution plans. Individual retirement accounts (IRAs) and 401(k) plans are defined contribution plans.

Asset Accumulation

An asset class is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations.

An asset class is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Equities (stocks), bonds (fixed-income securities), cash or marketable securities, and commodities are the most liquid asset classes and, therefore, the most quoted asset classes. An investment in a particular asset class is an investment in an asset that exhibits a certain set of characteristics. Financial advisors will help investors diversify their portfolios by combing assets from different asset classes that have different cash flows streams and varying degrees of risk. Equities (e.g., stocks), fixed income (e.g., bonds), cash and cash equivalents, real estate, commodities, and currencies are common examples of asset classes.

Asset Class

An asset play is an incorrectly-valued stock that is attractive because its combined asset value is higher than its market capitalization. 

An asset play is an incorrectly-valued stock that is attractive because its combined asset value is higher than its market capitalization, the total dollar market value of all the company's outstanding shares, calculated by multiplying a company's shares outstanding by the current market price of one share. An asset play is an incorrectly-valued stock that is attractive because its combined asset value is higher than its market capitalization, the total dollar market value of all the company's outstanding shares, calculated by multiplying a company's shares outstanding by the current market price of one share. Often, investors who participate in asset plays purchase these stocks in anticipation of price corrections that will cause the company's market capitalization to increase and, therefore, generate a profit for the investors. A stock is called an asset play because the rationale for purchasing the stock is that the company's assets are being offered to the market relatively cheaply, making it an attractive buy or play. Asset plays are stocks that are incorrectly valued stocks because the combined market capitalization of their assets is less than the value of their current outstanding shares.

Asset Play

Assimilation refers to the absorption of a new or secondary stock issuance by the public after it has been purchased by the underwriter. 

Assimilation refers to the absorption of a new or secondary stock issuance by the public after it has been purchased by the underwriter. In the case of a secondary offering where the shares are not the same as formerly issued shares, such as offering Class B shares instead of Class A shares, the rights and entitlements may be different from those of the other class of shares formerly issued. Instead of simply selling the shares on the open market, Shaw got an underwriter to buy their shares stake, which was more than 80 million shares, in a bought deal. When a company offers shares of its stock for sale to the public, either through an initial public offering (IPO) or through a secondary offering, the shares will first be allocated to one or more underwriters. If a company is issuing more shares, the new shares will be absorbed into the existing shares.

Assimilation

At a premium is a phrase attached to a variety of situations where a current value or transactional value of an asset is above its fundamental value.

"At a premium" is a phrase attached to situations where a current value or transactional value of an asset is trading above its fundamental or intrinsic value. Stock A may trade a premium to stock B, but there are many situations where stock A is still the superior investment no matter the premium. While the opinions in financial media can be enlightening, it is important for investors to do their research before deciding that a stock is trading at a premium compared to another stock or its own intrinsic value. Similarly, the equity risk premium refers to an excess return that investing in the stock market provides over a risk-free rate. In the case of a takeover, for example, the acquiring company often purchases the stock of a target company at a premium to market value.

At a Premium

An audit trail tracks accounting data to its source for verification. Learn how companies use auditing to reconcile accounts and detect fraud.

Futures Trader Pleads Guilty to Illegally Manipulating the Futures Market in Connection With 2010 'Flash Crash'

United States v. Navinder Singh Sarao. Court Docket No.: 1:15-cr-00075 (N.D. Illinois)

SEC Staff Accounting Bulletin No. 99: Materiality

Table of Contents
What Is an Audit Trail?
Understanding an Audit Trail
Types of Audit Trails
Audit Trails Pros and Cons
Examples of an Audit Trail Pros
Encourages user accountability and compliance
Helps maintain a well-functioning economy
Protects against fraud
Improves security
Costliness in terms of time and money
Can slow business operations
Requirements may be too rigid
The Order Audit Trail System (OATS) is an automated trade entry system established by the Financial Industry Regulatory Authority (FINRA) that is used to record information relating to orders, quotes, and other trade-related data from all equities traded on the National Market System (NMS). Audit trails also force entities to maintain a thorough and updated audit log and trail system, which further cuts down on fraud and other types of financial crime. Without the use of audit trails to confirm financial information, there would be no reason to believe in the legitimacy of a company's financial reports. Auditing FAQs
An audit trail is a step-by-step record by which accounting, trade details, or other financial data can be traced to their source.

Audit Trail

Certified Valuation Analyst (CVA) is a professional designation that signifies a high standard of competence in the field of valuing businesses.

Those who hold a business degree, have sufficient work experience in business valuation, submit business and personal references and recommendations, are members in good standing of NACVA or pay a CVA designation fee, and pass the five-hour multiple choice CVA exam earn the certification. Duties may include providing guidance and figures for a business that is being sold or merged, valuing a business that is being passed to family members, valuing a business so it can better find credit or funding, or determining a buy-in price for those looking to become partners in an existing business. There are six steps to becoming a CVA:
1.  Meet the CVA qualifications and apply for the designation
2.  Apply for membership to the NACVA, or pay a CVA designation fee The study program to become a CVA covers business valuation fundamentals, techniques and theory, income and asset approaches to business valuation, case analysis, and special purpose valuation.

Certified Valuation Analyst (CVA)

Slang referring to the purchase of a large position in a stock or other financial asset by an individual who feels optimistic about future performance.

Back up the truck is slang that refers to the purchase of a large position in a stock or other financial asset by an investor or trader. If an analyst recommends that it is time to start backing up the truck on XYZ stock, this means that they are extremely confident and upbeat about how well XYZ stock will perform in the foreseeable future. Back up the truck is slang for purchasing a large position in a stock or other financial asset in hopes that its price will shoot up in the future. While the term “back up the truck” might be uttered at a cocktail party, in a hush-hush manner as a hot tip to discretely pass along to a friend, the term isn’t solely limited to those eager to tout an individual equity. Back up the truck is slang that refers to the purchase of a large position in a stock or other financial asset by an investor or trader.

Back Up The Truck

Bailment describes the transfer of property from a bailor, who temporarily relinquishes possession but not ownership of the property, to a bailee. 

Table of Contents
Expand Other financial applications for bailment include:
Designating bailees to temporarily supervise investment portfolios
Holding collateral against secured loans
Warehousing
Self-storage
The shipping of goods
There are three different types of bailments—those that benefit both parties, those that benefit only the bailor, and those that only benefit the bailee. The term bailment refers to a legal relationship between two parties in common law, where assets or property are transferred from a bailor to a bailee. There are three types of bailments—those that benefit both parties, those that benefit only the bailor, and those that only benefit the bailee. A bailment involves the contractual transfer of assets or property from a bailor, who temporarily relinquishes possession but not ownership, to a bailee.

Bailment

A ballot is a document that a shareholder of a company fills in to vote on corporate matters contained in a proxy filing for the annual meeting.

A ballot is a document used by a shareholder to exercise their voting rights. This ballot item is a non-binding “say-on-pay” vote that sometimes is used by shareholders to express their displeasure at the amounts the Named Executive Officers (NEOs) are paid in cash, equity, and other non-cash compensation. At times, these votes can become quite contentious, with management or groups of shareholders advocating that shareholders vote in a particular manner. A proxy vote is a ballot cast by one person or firm for a company's shareholder who can't attend a meeting, or who doesn't want to vote on an issue. Such a ballot is typically submitting by shareholders (electronically or by mail) ahead of their company’s annual general meeting (AGM) or by proxy.

Ballot

The Baltic Exchange handles the trading and settlement of both physical contracts and derivatives relating to shipping and maritime transportation. 

The Baltic Exchange is a London-based exchange that provides real-time maritime shipping information to traders for settling physical and derivative shipping contracts. They are the Baltic Exchange Capesize Index (BCI); Baltic Exchange Panamax Index (BPI); the Baltic Exchange Supramax Index (BSI); the Baltic Exchange Handysize index (BHSI) and the Baltic Exchange Dry Index (BDI). Currently, the Baltic Exchange provides the following set of services:
Independent, high quality dry, wet and gas freight market information
Self-regulated chartering, sale and purchase and freight derivatives markets
Central forum for competing freight market interests
Framework ensuring high standards of business practice and co-operation
London-based business facilities for members These fees are tiered and include anything from simple access to the Baltic Exchange website and index information to full use of the Baltic Exchange dispute resolution services, events and settling of FFAs. The Baltic Exchange is a London-based exchange that provides real-time maritime shipping information to traders for settling physical and derivative shipping contracts.

Baltic Exchange

Basis has many meanings in finance, but most frequently refers to the difference between the price and expenses in a transaction when calculating taxes. 

Although the term "basis" holds various meanings in finance, it most frequently refers to the difference between the prices and the expenses involved in transactions when calculating taxes. In the futures market, basis represents the difference between the cash price of the commodity and the futures price of that commodity. In another context, basis refers to the variation between the spot price of a deliverable commodity and the relative price of the futures contract. However, to ensure that this tax-free treatment is realized, the taxpayer must file IRS Form 8606 for any year that basis is added to the IRA and for any year that distributions are made from any of the individual's traditional, SEP, or SIMPLE IRAs. It is also known as cost basis or tax basis.

Basis

A bear is one who thinks that market prices will soon decline, or has general market pessimism.

Compound Annual Growth Rate (Annualized Return)

A bear is an investor who believes that a particular security, or the broader market is headed downward and may attempt to profit from a decline in stock prices. Because they are pessimistic concerning the direction of the market, bears use various techniques that, unlike traditional investing strategies, profit when the market falls and lose money when it rises. For example, if an investor were bearish on the Standard & Poor's (S&P) 500, that investor would expect prices to fall and attempt to profit from a decline in the broad market index. A bear is an investor who believes that a particular security, or the broader market is headed downward and may attempt to profit from a decline in stock prices. 1:44
Bearish sentiment can be applied to all types of markets including commodity markets, stock markets, and the bond market.

Bear

A bellwether is a leading indicator that suggests the presence of a trend. Discover the pros and cons of using bellwethers as investment tools.

5 Stocks That Are Bellwethers for the U.S. Economy

Table of Contents
What Is a Bellwether? Similarly, Sandoval County in New Mexico is considered a bellwether because it gives a good pulse on national politics in swing states; in that county, there is a pretty moderate political sentiment, so that in some years, it swings red, and other years, it swings blue. For investors who are following the market, bellwether stocks can provide a useful first pulse check on larger economic trends. Instead, investors may use bellwether stocks as indicators while actually putting their money into up-and-coming stocks with plenty of growth potential ahead of them. A stock's status as a bellwether may wane over time, but in the equities markets, the largest and best-established companies in an industry are often its bellwethers.

Bellwether

Benchmark error occurs when an inappropriate benchmark is used as a proxy for an investment strategy.

Benchmark error is a situation in which the wrong benchmark is selected in a financial model, causing the model to produce inaccurate results. When considering what benchmark to use, she rejects using the Japanese Nikkei index as her benchmark because she determines that it is an inappropriate comparison for American stocks and would therefore introduce benchmark error. Instead of the Nikkei index, Alison decides to use the Nasdaq index as her benchmark, which represents prominent American technology companies that are similar to the companies she intends to include in her portfolio. Benchmark error is a situation in which the wrong benchmark is selected in a financial model, causing the model to produce inaccurate results. Benchmark error is a situation in which the wrong benchmark is selected in a financial model, causing the model to produce inaccurate results.

Benchmark Error

A bid-ask spread is the amount by which the ask price exceeds the bid price for an asset in the market.

Table of Contents
What Is a Bid-Ask Spread?
Understanding Bid-Ask Spreads
Relation to Liquidity
Elements of the Bid-Ask Spread
A bid-ask spread is the amount by which the ask price exceeds the bid price for an asset in the market. For the stock in the example above, the bid-ask spread in percentage terms would be calculated as $1 divided by $20 (the bid-ask spread divided by the lowest ask price) to yield a bid-ask spread of 5% ($1 / $20 x 100). The bid-ask spread is the difference between the highest price the seller will offer (the bid price) and the lowest price the buyer will pay (the ask price). Price takers buy at the ask price and sell at the bid price, but the market maker buys at the bid price and sells at the ask price. Table of Contents
What Is a Bid-Ask Spread?
Understanding Bid-Ask Spreads
Relation to Liquidity
Elements of the Bid-Ask Spread
A bid-ask spread is the amount by which the ask price exceeds the bid price for an asset in the market.

Bid-Ask Spread

A bid is an offer made by an investor, trader, or dealer to buy a security that stipulates the price and the quantity the buyer is willing to purchase.

Win More Government Contracts. Start Receiving Perfectly Matched Bids Today

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Table of Contents
What Is a Bid?
How a Bid Works
Inside the Spread
Market Makers
Other Types of Bids
Examples of a Bid When completing a purchase at the bid price, both the bid and the ask may rise to significantly higher levels for subsequent transactions, if the seller perceives a strong demand. Types of bids include auction bids, online bids, and sealed bids. Most government contracts are open for bids through a sealed-bid process, which means you can't see how your competition is bidding. The bid is the price of a stock for a buyer, while the ask represents the price a seller is willing to accept on the trade.

Bid price is the price a buyer is willing to pay for a security. 

A bid price is a price for which somebody is willing to buy something, whether it be a security, asset, commodity, service, or contract. Generally, a bid is lower than an offered price, or “ask” price, which is the price at which people are willing to sell. Investors and traders that initiate a market order to buy will typically do so at the current ask price and sell at the current bid price. The difference between the bid price and ask price is known as the market's spread, and is a measure of liquidity in that security. For example, if the ask price of a good is forty dollars, and a buyer wants to pay thirty dollars for the good, they might make a bid of twenty dollars, and appear to compromise and give up something by agreeing to meet in the middle—exactly where they wanted to be in the first place.

Bid Price

Blind brokering is when brokerage firms ensure anonymity to both the buyer and the seller in a transaction.

Blind brokering is the case when brokerage firms ensure anonymity to both the buyer and the seller in a transaction. Blind brokering is critical to preserve market integrity, since the knowledge of who a buyer or seller is and their intentions can bias markets or lead to inefficient prices for particular trades. Without blind brokers, traders and dealers directly buying and selling securities would inevitably, though implicitly, be exposing information regarding positions and intentions to their counterparties or other market participants. For example, if a large bank needs to sell shares of a stock because the bank needs extra cash (liquidity), potential buyers with that knowledge (of who the seller is or their situation) can manipulate the price to take advantage of the need of the seller to offload shares at any reasonable price. Inter-dealer brokers (IDBs), for instance, put together block trades in stocks, options, fixed-income products, and other securities for clients of large investment banks (dealers) rather than directly with retail clients.

Blind Brokering

A blind pool is a direct participation program or limited partnership that lacks a stated investment goal for the funds raised from investors.

A blind pool, also known as "blank check underwriting" or a "blank check offering," is a direct participation program or limited partnership that lacks a stated investment goal for the funds that are raised from investors. A potential use for a blind pool vehicle is to provide funding for the acquisition of private companies to take them public outside of the traditional regulations and registration process. One potential use for a blind pool vehicle is to provide funding for the acquisition of private companies to take them public outside of the traditional regulations and registration process. The first step in evaluating any blind pool is to examine its prospectus, offering memorandum, or private placement memorandum, which tend to be long legal documents that outline what the fund may invest in and how much authority is given to the manager. The flexibility afforded to blind pools gives them an advantage over traditional funds, which tend to employ self-imposed rules governing investments.

Blind Pool

Blue Collar Trader refers to a trader who has another source of income and trades their extra money as a hobby. 

Blue collar trader is a person who trades as a hobby and has another source of income. Blue collar traders typically earn their primary source of income from a profession, occupation, or business other than trading financial assets. Blue collar traders can be contrasted with professional traders who trade in order to generate returns that serve as their primary source of income. Blue collar traders need to avoid conflicts of interest between their main occupation and their trading positions. Blue collar traders may glean insights from their main professions and use these insights to inform their trading decisions.

Blue Collar Trader

A bonus issue is an offer of free additional shares to existing shareholders. 

A bonus issue, also known as a scrip issue or a capitalization issue, is an offer of free additional shares to existing shareholders. Companies typically declare a stock split as a method of infusing additional liquidity into shares, increasing the number of shares trading and making shares more affordable to retail investors. In addition, shareholders selling bonus shares to meet liquidity needs lowers shareholders' percentage stake in the company, giving them less control over how the company is managed. In contrast, when a company issues bonus shares, the shares are paid for out of the cash reserves, and the reserves deplete. Because issuing bonus shares increases the issued share capital of the company, the company is perceived as being bigger than it really is, making it more attractive to investors.

Bonus Issue

An asset's book value is equal to its carrying value on the balance sheet, and companies calculate it by netting the asset against its accumulated depreciation.

Book value is equal to the cost of carrying an asset on a company's balance sheet, and firms calculate it netting the asset against its accumulated depreciation. As the accounting value of a firm, book value has two main uses:
1.  It serves as the total value of the company's assets that shareholders would theoretically receive if a company was liquidated.
2.  When compared to the company's market value, book value can indicate whether a stock is under- or overpriced. The book value of a company is the net difference between that company's total assets and total liabilities, where book value reflects the total value of a company's assets that shareholders of that company would receive if the company were to be liquidated. Since a company's book value represents the shareholding worth, comparing book value with the market value of the shares can serve as an effective valuation technique when trying to decide whether shares are fairly priced. Book value per share (BVPS) is a method to calculate the per-share book value of a company based on common shareholders' equity in the company.

Book Value : Formula & Calculation

A bought deal is a securities offering in which an investment bank commits to buy the entire offering from the client company.

A bought deal is a securities offering in which an investment bank commits to buy the entire offering from the client company. In all forms of IPOs, including bought deals, the underwriters and/or a syndicate of underwriters will facilitate some or all of the following:
The formation of an external IPO team, consisting of an underwriter(s), lawyers, certified public accountants (CPAs), and Securities and Exchange Commission (SEC) experts
The compilation of detailed company information, including financial performance and expected future operations
The submission of financial statements for official audit A bought deal is a securities offering in which an investment bank commits to buy the entire offering from the client company. In a fixed price offering, the company going public (the issuing company) determines a set price at which it will offer its shares to investors. A company can employ fixed price and book building IPOs separately or combined, and a bought deal can employ these methods for reselling the securities as well.

Bought Deal

Break-even analysis calculates a margin of safety where an asset price, or a firm's revenues, can fall and still stay above the break-even point.

Break-even analysis entails calculating and examining the margin of safety for an entity based on the revenues collected and associated costs. Upon the sale of 500 units, the payment of all fixed costs are complete, and the company will report a net profit or loss of $0.
Alternatively, the calculation for a break-even point in sales dollars happens by dividing the total fixed costs by the contribution margin ratio. For example, if an item sells for $100, the total fixed costs are $25 per unit, and the total variable costs are $60 per unit, the contribution margin of the product is $40 ($100 - $60). The break-even point is calculated by dividing the total fixed costs of production by the price per individual unit less the variable costs of production. Analyzing different price levels relating to various levels of demand, the break-even analysis determines what level of sales are necessary to cover the company's total fixed costs.

Break-Even Analysis : Analysis Explained

A bull position, also known as a long position, is one where the investor profits when the price of the investment rises.

A bull position, also known as a long position, is one where the investor profits when the price of the investment rises. The term bull position is synonymous with the term long position, while bear position is synonymous with short position. The terms bull position and bear position are synonymous with the terms long position and short position, respectively. While a bull position is one where the investor expects the price to rise, a bear position is one where the investor expects its price to fall. A bull position, also known as a long position, is one where the investor profits when the price of the investment rises.

Bull Position

A bull is an investor who invests in a security expecting the price will rise. Discover what bullish investors look for in stocks and other assets.

Table of Contents
What Is a Bull?
Understanding Bulls
Bullish Characteristics
Bulls and Risk Mitigation
Bull vs. Bear Characteristics of a bull market include:
A prolonged period of rising stock prices (usually by at least 20% or more over a minimum of two months)
A strong or strengthening economy
High investor confidence
High investor optimism
A general expectation that things will be positive for an extended period
To limit the risk of losses, a bull may employ the use of stop-loss orders.
This allows the investor to specify a price at which to sell the associated security should prices begin to move downward. A bullish investor can fall prey to a bull trap, when they believe a sudden increase in the value of a particular security is the beginning of a trend, resulting in the investor going long. Four of the most commonly used technical analysis indicators are:
1.  **Moving averages:*If the moving average line is angled up (down), a bullish (bearish) trend is occurring.
2.  **Moving average convergence divergence (MACD):*If the MACD lines are above (below) zero for a prolonged period of time, the stock is in a bullish (bearish) trend. A bull trap exists when an investor believes a sudden increase in the value of a particular security is the beginning of a trend resulting in the investor going long.

Bull

A bull market is a financial market in which prices are rising or are expected to rise.

A bull market is the condition of a financial market in which prices are rising or are expected to rise. Since the dramatic market sell-off during the 2008-09 financial crisis, the stock market has shown a resilient bull market, rising significantly, and reaching new all-time highs more than ten years after that market crash (despite some sharp pullbacks along the way).
Bull markets often exist side-by-side a strong, robust, and growing economy. During this secular bull market—a term that denotes a bull market lasting many years—the Dow Jones Industrial Average (DJIA) averaged 16.8% annual returns. A bull market is the condition of a financial market in which prices are rising or are expected to rise. The opposite of a bull market is a bear market, which is characterized by falling prices and typically shrouded in pessimism.

Bull Market : Characteristics & Examples

Buy and homework is a buzzword coined by Jim Cramer based on the idea that buy and hold is a losing strategy. 

"Buy and homework" is a phrase popularized by former hedge fund manager and TV personality Jim Cramer. Cramer's answer to the first argument is that investors who lack the time to research their stock picks would be better off handing their portfolio over to a professional manager, for example, through a mutual fund or exchange-traded fund. This means paying attention to company and industry news stories, listening to conference calls, reading quarterly earnings reports and 10-K disclosures, understanding the key financial ratios driving the company's business, and knowing what analysts are looking for. However, the underlying philosophy makes sense: it is always a smart idea for investors to do their homework before making important investment moves, and to keep doing their homework to ensure their original investment thesis remains unchanged. If investors spend at least one hour a week researching each stock in their portfolio, they will be well equipped to respond to changes in the market.

Buy And Homework

Buy and hold is a passive investment strategy in which an investor buys stocks and holds them for a long period regardless of fluctuations in the market.

Buy and hold is a passive investment strategy in which an investor buys stocks (or other types of securities such as ETFs) and holds them for a long period regardless of fluctuations in the market. Many legendary investors such as Warren Buffett and Jack Bogle praise the buy-and-hold approach as ideal for individuals seeking healthy long-term returns.
Buy and hold is a long-term passive strategy where investors keep a relatively stable portfolio over time, regardless of short-term fluctuations. Both sides have valid arguments, but a buy-and-hold strategy has tax benefits because the investor can defer capital gains taxes on long-term investments. Rather than treating ownership as a short-term vehicle for profit in the mode of a day trader, buy-and-hold investors keep shares through bull and bear markets. An investor who uses a buy-and-hold strategy actively selects investments but has no concern for short-term price movements and technical indicators.

Buy and Hold

A buyback is a repurchase of outstanding shares by a company to reduce the number of shares on the market and increase the value of remaining shares.

S.2391 - Stock Buyback Reform and Worker Dividend Act of 2019

The Dangers of Buybacks, Mitigating Common Pitfalls

Apple Reports Second Quarter Results, May 1, 2018

Table of Contents
What Is a Buyback?
Understanding Buybacks
How Buybacks Work
Buyback FAQs Companies buy back shares for a number of reasons, such as to increase the value of remaining shares available by reducing the supply or to prevent other shareholders from taking a controlling stake.
A buyback is when a corporation purchases its own shares in the stock market. To reward investors and provide a return to them, the company announces a share buyback program to repurchase 10% of its outstanding shares at the current market price. A buyback, also known as a share repurchase, is when a company buys its own outstanding shares to reduce the number of shares available on the open market. 2.  Companies buy back shares on the open market over an extended period of time and may even have an outlined share repurchase program that purchases shares at certain times or at regular intervals.

Buyback

Buying forward is when a commodity is purchased at a price negotiated today for delivery or use at a future date.

Buying forward is when an investor negotiates the purchase of a commodity at a price negotiated today but takes actual delivery at some point in the future. While futures contracts are standardized, trade on major exchanges, and have clearinghouses that guarantee the timely and complete delivery of the transactions; forward contracts lack a centralized clearinghouse and, therefore, can pose a higher degree of default risk. In contrast with standard futures contracts, a forward contract can be customized to any commodity, amount, and delivery date, and is generally a private arrangement. Buying forward is when an investor negotiates the purchase of a commodity at a price negotiated today but takes actual delivery at some point in the future. Buying forward allows the investor to lock up the commodity or security at a lower price now and then sell when prices rise.

Buying Forward

The capital allocation line on a graph shows all possible mixes of risky and risk-free assets, enabling investors to gauge potential returns based on risk.

The capital allocation line (CAL), also known as the capital market link (CML), is a line created on a graph of all possible combinations of risk-free and risky assets. The expected return (ER) of this portfolio is calculated as follows:
ER of portfolio = ER of risk-free asset x weight of risk-free asset + ER of risky asset x (1- weight of risk-free asset) If the investor allocated 25% to the risk-free asset and 75% to the risky asset, the portfolio expected return and risk calculations would be:
ER of portfolio = (3% x 25%) + (10% \75%) = 0.75% + 7.5% = 8.25%
Risk of portfolio = 75% \20% = 15%
The slope of the CAL measures the trade-off between risk and return. Asset allocation is the allotment of funds across different types of assets with varying expected risk and return levels, whereas capital allocation is the allotment of funds between risk-free assets, such as certain Treasury securities, and risky assets, such as equities. In this example, if an investor were to invest 100% into the risk-free asset, the expected return would be 3% and the risk of the portfolio would be 0%.

Capital Allocation Line (CAL)

Capital flows entail the path that money travels through corporations, governments or other entities for the purpose of investment, trade or business production.

Capital flows refer to the movement of money for the purpose of investment, trade, or business operations. Different sub-sets of capital flows are often scrutinized by analysts such as asset-class movements, venture capital flows, mutual fund flows, capital spending budgets, and the federal budget. Investors also look at the growth rate of certain capital flows, such as venture capital and capital spending, to find any trends that might indicate future investment opportunities or risks. In the financial markets, asset-class movements are measured as capital flows between cash, stocks, bonds, and other financial instruments, while venture capital shifts in regards to investments being placed in startup businesses. Inside of a firm, these include the flow of funds in the form of investment capital, capital spending on operations, and research and development (R&D).

Capital Flows

Capital investment is a sum acquired by a company to further its business objectives. The term also may refer to a company's acquisition of long-term assets.

Capital investment is the procurement of money by a company in order to further its business goals and objectives. It also can refer to a company's acquisition of permanent fixed assets such as property, plant and equipment (PP&E).
A capital investment can be made via several sources including using cash on hand, selling other assets, or raising capital through the issuance of debt or equity.
Capital investment is a broad term that can be defined in two distinct ways:
1.  An individual, a venture capital group or a financial institution may make a capital investment in a business. A new company might seek capital investment from any number of sources, including venture capital firms, angel investors and traditional financial institutions. It is more likely the company will resort to outside financing to make up for any internal shortfall.
Capital investment is meant to benefit a company in the long run, but it nonetheless can have short-term downsides. The company may make a capital investment in the form of an equity stake in another company's complementary operations for the same purposes.

Capital Investment

Capital recovery refers to the earning back of the initial funds put into an investment that a company must accrue before it can earn a profit on its investment.

Capital recovery is a term that has several related meanings in the world of business. If a company is going out of business and needs to liquidate its assets or has excess equipment that it needs to sell, it might hire a capital recovery company to appraise and auction off its assets. Initial cost, salvage value, and projected revenues factor into a capital recovery analysis when a company is determining whether and at what cost to purchase an asset or invest in a new project. When a company is thinking about purchasing a new asset or even a new business, capital recovery is a helpful factor in that decision-making process. Capital recovery refers primarily to recovering initial funds put into an investment through returns from that investment, making it a break-even measure.

Capital Recovery

Capital appreciation is a rise in the value of any asset, such as a stock, bond or piece of real estate. 

Capital appreciation is a rise in an investment's market price. The investor has a return of $5 from capital appreciation as the price of the stock went from the purchase price or cost basis of $10 to a current market value of $15 per share. Some of the financial assets that are invested in for capital appreciation include:
Real estate holdings
Mutual funds or funds containing a pool of money invested in various securities
ETFs or exchange-traded funds or securities that track an index such as the S&P 500
Commodities such as oil or copper
Stocks or equities Investments targeted for capital appreciation tend to have more risk than assets chosen for capital preservation or income generation, such as government bonds, municipal bonds, or dividend-paying stocks. 1:18
Capital appreciation refers to the portion of an investment where the gains in the market price exceed the original investment's purchase price or cost basis.

Capital Appreciation

A capital loss is the loss incurred when a capital asset that has decreased in value is sold for a lower price than the original purchase price.

A capital loss is the loss incurred when a capital asset, such as an investment or real estate, decreases in value. In regards to taxes, capital gains can be offset by capital losses, reducing taxable income by the amount of the capital loss.
Capital gains and capital losses are reported on Form 8949. After dumping XYZ stock on November 30 to claim a loss, the Internal Revenue Service (IRS) disallows the capital loss if the same stock is purchased on or before December 30, requiring the investor to wait 31 days before the repurchased security can be sold again to claim another loss. A capital loss is essentially the difference between the purchase price and the price at which the asset is sold, where the sale price is lower than the purchase price. A capital loss is a loss incurred when a capital asset is sold for less than the price it was purchased for.

Capital Loss

Cash delivery is a settlement between the parties of certain derivatives contracts, requiring the seller to transfer the monetary value of the asset.

Table of Contents
What Is Cash Delivery? Opting for cash delivery means either being credited or debited the difference between the initial price and the final settlement once the futures or options contract expires or is exercised. Those who opt for a cash delivery will either be credited or debited the difference between the initial price and the final settlement once the futures or options contract expires or is exercised. In the investment world, cash delivery is a settlement method when a futures or options contract expires or is exercised. Alternatively, in the foreign exchange (forex) market cash delivery means the settlement of a contract.

Cash Delivery

A cash investment is a short-term obligation, usually fewer than 90 days, that provides a return in the form of interest payments.

A cash investment is a short-term obligation, usually fewer than 90 days, that provides a return in the form of interest payments. Investors that are looking for a safe investment and looking to preserve their capital will opt for secure investment vehicles, such as cash investments. Investors that are looking for a safe investment and looking to preserve their capital will opt for secure investment vehicles, such as cash investments. A cash investment is a short-term obligation, usually fewer than 90 days, that provides a return in the form of interest payments. A cash investment is a short-term obligation, usually fewer than 90 days, that provides a return in the form of interest payments.

Investing Essentials

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