Naked Call
What is a naked call A naked call is an options strategy in which the investor writes (sells) a call option on a security without owning the underlying security. It is also known as an uncovered call. Theoretically, a naked call is unlimited in profit potential as the stock price can rise indefinitely, while the downside is limited to the...
It is a 401k?
A 401k plan is a retirement plan that is available through an employer. It allows you to save and grow your nest egg using investments in the market. When you are ready to retire, you'll have a larger amount available for you to use. 401ks are qualified tax-advantaged accounts. This means they meet certain requirements from the IRS that...
Paid-Up
What is 'Paid-Up' The state of a settlement when all payment obligations for a security have been completed in a customer account. When an individual has paid up, he or she has paid for the security in full. Explaining 'Paid-Up' For example, when an investor buys stock, he/she is given three days to pay...
Pacific Rim
What is 'Pacific Rim' The Pacific Rim is a geographic area surrounding the edges of the Pacific Ocean. The Pacific Rim covers the western shores of North America and South America, in addition to Australia, eastern Asia and the islands of the Pacific. Explaining 'Pacific Rim' "Pacific Rim" is a description of a region, not...
MLP
An MLP is a master limited partnership. These are companies organized as partnerships that are publicly traded, combining both the advantages of a private partnership with tax while also retaining the liquidity offered by stocks. Are MLPs a good investment Investing directly into MLPs can be valuable for high net worth investors. The reason for this is that avoding...
Y2K
What is 'Y2K' A shorthand term for "the year 2000" commonly used to refer to a widespread computer programming shortcut that was expected to cause extensive havoc as the year changed from 1999 to 2000. Instead of allowing four digits for the year, many computer programs only allowed two digits (e.g., 99 instead of 1999). As a...
What is ADR
ADR stands for American Depository receipt. It is issued by the United States depository bank and is a negotiable certificate which represents a certain number of shares. This is often just one share of company stock in a foreign company. Currently, the ADR is traded like any domestic shares on United States stock markets. Are There Fees Associated with...
C-Suite
What is 'C-Suite' C-suite is a widely-used slang term used to collectively refer to a corporation's most important senior executives. C-Suite gets its name because top senior executives' titles tend to start with the letter C, for chief, as in chief executive officer, chief operating officer and chief information officer. Explaining 'C-Suite' The C-suite is...
RSI – Relative Strength Index
Relative Strength Index (RSI) is a technical analysis tool that is used by investors to make investment decisions. Developed by J. Welles Wilder, RSI is a momentum oscillator that helps in determining the rate of change of prices. RSI values range from 0 to 100. An RSI of 30 indicates that the asset is oversold while an RSI greater...
XRT
What is 'XRT' A notation on a ticker tape that is used to indicate that a security is trading on an ex-rights basis. When used in conjunction with a security that has just undergone a rights offering, the word is intended to remove any uncertainty that may occur by reaffirming that such rights stay with the seller of the security...