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What Does Baltic Dry Index – BDI Mean?
The Baltic Dry Index (BDI) is a number issued daily by the London-based Baltic Exchange.A shipping and trade index created by the London-based Baltic Exchange that measures changes in the cost to transport raw materials such as metals, grains and...
What Does BOBL Futures Contract Mean?
A futures contract with medium term debt that is issued by the Federal Republic of Germany as its underlying asset. The contract has a notional contract value of 100,000 euros, with a term to maturity of 4.5 to five years. Unlike most other types of future...
What Does Broker Booth Support System – BBSS Mean?
An electronic system used by the New York Stock Exchange to send orders between brokers and trading booths on the floor of the exchange. An order-management system designed exclusively for NYSE members, which enables member firms to quickly and efficiently...
What is a Dividend Irrelevance Theory?
Dividend Irrelevance Theory is a theory that a company’s dividend policy has no real effect on the value of the company. A theory which explains that investors are not concerned with a company’s dividend policy since they can sell a portion of...
Dividend Recapitalization
Issuing debt and using the proceeds to pay a special dividend to stockholders. When a company incurs a new debt in order to pay a special dividend to private investors or shareholders. This usually involves a company owned by a private investment firm,...
What is a Dividend Rollover Plan?
Dividend rollover plans are processes that involve the buying and selling securities that are shortly going to pay a dividend. An investment strategy in which a dividend-paying stock is purchased right before the ex-dividend date, which gives the purchaser...
What is an Cutoff Point?
Cut off point is a point separating two opposite states, such as ‘yes’ and ‘no.’Basically it is the point at which an investor decides whether or not a particular security is worth purchasing. The cutoff point is very subjective...
Consumer Confidence Index – CCI
Consumer confidence is the degree of optimism that consumers feel about the overall state of the economy and their personal financial situation. How confident people feel about stability of their incomes determines their spending activity and therefore...
Constructive Sale Rule – Section 1259
A section of the Internal Revenue Code that clarifies the transactions that are subject to capital gains taxation. Basically, any transaction that essentially offsets a previously held position is subject to the tax, even if it is not a straight sale...
ABC Agreement
ABC Agreement is an agreement between a firm that finances a seat on the New York Stock Exchange and the employee who purchases the seat. The agreement, approved by the exchange, permits the member to transfer the seat to another employee of the member...
Accelerated Death Benefit – ADB
A death benefit in some life insurance policies that may be paid before the policyholder’s actual death. Generally speaking, one may use the accelerated death benefit only to defray medical expenses should the policyholder be diagnosed with a terminal...
Adjustable-Rate Preferred Stock – ARPS
A type of preferred stock where the dividends issued will vary with a benchmark, most often a T-bill rate. preferred stock , whose dividend instead of being fixed is adjusted, usually quarterly, based on changes in the Treasury bill rate or other money...
Annuitization Phase
The annuitization phase involves liquidating the annuity through fixed annuity payments for a period certain or for the remainder of the annuitant’s life. Rolling over annuity funds or receiving a full lump sum from an annuity at maturity is not...
Arbitrage Trading Program – ATP
A trading strategy taking a long or short position on a stock or commodity and taking the opposite position on a futures contract. This strategy often makes use of a computer program because the transactions involved can become complex and occur in rapid...
Articles Of Incorporation
The Articles of Incorporation (sometimes also referred to as the Certificate of Incorporation or the Corporate Charter) are the primary rules governing the management of a corporation in the United States and Canada, and are filed with a state or other...
