What is a 'Value-Added Tax - VAT' A value-added tax (VAT) is a type of consumption tax that is placed on a product whenever value is added at a stage of production and at final sale. VAT...
How to Calculate Variation and Maintenance Margin
In futures trading, you must provide variation margin to your broker if you want to continue trading. If you fail to provide variation margin, your broker will forcefully close your position and you...
DefinitionValue-based price is a pricing strategy which sets prices primarily, but not exclusively, according to the perceived or estimated value of a product or service to the customer rather than according to the cost of the product or historical...
Leverage is the utilization of distinct financial tools or borrowed capital comprised to increase the possible return on an investment. Leverage is most commonly seen through real estate transactions and mortgages when individuals are purchasing a new home. ...
DefinitionA savings account is a deposit account held at a retail bank that pays interest but cannot be used directly as money in the narrow sense of a medium of exchange. These accounts let customers set aside a portion...
What is the 'Fair Credit Billing Act - FCBA' A federal law designed to protect consumers from unfair credit billing practices. The Fair Credit Billing Act (FCBA) provides guidelines for both consumers and creditors including procedures to...
What is 'Federal Direct Loan Program ' A program that provides low-interest loans to postsecondary students and their parents. The William D. Ford Federal Direct Loan Program is issued and managed by the U.S. Department of Education...
What is 'Family And Medical Leave Act - FMLA' The Family and Medical Leave Act (FMLA) was signed into law on August 5, 1993 by President Bill Clinton. The FMLA is a labor law requiring larger employers...
What is 'Federal Farm Credit System - FFCS' In the United States, a network of federally chartered financial institutions designed to provide credit-related services to the agricultural and farming sectors of the economy. In total, this government-sponsored...
What is 'Fairway Bond' A type of bond that accrues interest if the embedded index or interest-rate option underlying the bond remains within a specified range. The fairway in golf is like the index or interest rate...