An uncovered option is a type of option contract that is not hedged by an opposite position in the underlying security. This leaves the holder of the option open to unlimited losses if the market price of the underlying...
What is 'Underwater' An option that would be worthless if it expired today. An underwater option may be either a call or put option. A call option is underwater when its strike price is higher than the...
When a company offers its stock to the public for the first time, it's called an initial public offering, or IPO. IPOs can be a great opportunity for investors, but only if the stock is priced correctly. When a...
DefinitionBankruptcy is a legal status of a person or other entity that cannot repay debts to creditors. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor. Bankruptcy is not the only legal status...
What are 'Mandatorily Redeemable Shares'
Mandatorily redeemable shares are shares owned by an individual or entity which are required to be redeemed for cash or another such property at a stated time or following a specific event. Mandatorily reedemable shares...
What is an 'Underlying Asset'
An underlying asset is the security or commodity underlying a Derivative. The most common type of derivative is a futures contract, and the underlying asset for futures contracts can be anything from agricultural products to...
DefinitionCommon stock is a form of corporate equity ownership, a type of security. The terms voting share and ordinary share are also used frequently in other parts of the world; "common stock" being primarily used in the United States....
What is the 'Real Gross Domestic Product (GDP)' Real gross domestic product (GDP) is an inflation-adjusted measure that reflects the value of all goods and services produced by an economy in a given year, expressed in base-year...
DefinitionGross domestic product is a monetary measure of the market value of all the final goods and services produced in a specific time period.GDP per capita does not, however, reflect differences in the cost of living and the inflation...
DefinitionEconomic growth is the increase in the inflation-adjusted market value of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP....