A piece of legislation that was created in an attempt to establish an economy-wide climate and energy policy to help address the issue of climate change. The U.S House of Representatives passed the act on June 26, 2009, by a vote of 219 to 212.The bill proposes a cap and trade system, under which the government sets a limit (cap) on the total amount of greenhouse gases that can … [Read more...]
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 annuitization. For annuitization to occur, liquidation must occur solely via conversion to an income stream.The period during which an … [Read more...]
Arbitrage Trading Program – ATP Explained
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 succession. A trader using an arbitrage trading program usually closes the positions toward the end of the futures contract … [Read more...]
Articles Of Incorporation Explained
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 regulatory agency.A set of documents filed with a government body for the purpose of legally documenting the creation of a … [Read more...]
Asymmetric Volatility Phenomenon – AVP
The asymmetric volatility phenomenon (sometimes known as AVP) is a market dynamic that shows that there are higher market volatility levels in market downswings than in market upswings. Factors that cause this phenomenon have been attributed to several possible sources, such as the effects of leverage in the markets, volatility feedback and psychological investment factors … [Read more...]