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 the right to the divided, with the position being sold off shortly after the ex-dividend date. The sole intention of this … [Read more...]
Daily Average Revenue Trades – DARTs
Daily Average Revenue Trades - DARTs is basically an common metric which is used in the investing brokerage industry that represents the number of trades from which a given broker can expect to generate revenue through commissions or fees on any given day. Daily average revenue trades are closely monitored by the analysts who periodically follows this sector because much of … [Read more...]
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 and will be based on the personal characteristics of the individual investor.he cutoff point is subject and varies from investor to investor. However, … [Read more...]
What are CUSIP Number?
CUSIP Number typically stands for Committee on Uniform Security Identification Procedures and the 9-character alphanumeric security identifiers that they distribute for all North American securities for the purposes of facilitating clearing and settlement of trades. It is an identification number assigned to all stocks and registered bonds. The Committee on Uniform … [Read more...]
Contingent Credit Default Swap (CCDS)
A variation on the credit default swap (CDS). In a simple CDS, payment under the swap is triggered by a credit event, such as non-payment of interest. Here the trigger requires both the typical default plus some contingent event; e.g., default on another credit. Default correlation between the two credits, of course, is the critical variable. To illustrate with an extreme, … [Read more...]