Vanilla Strategy
What is 'Vanilla Strategy' An approach to investing or to business decision-making that is basic and common. Some investors and businesses excel because they choose an ordinary, vanilla strategy, while others succeed through innovation. In derivatives trading, a vanilla strategy is the use of two different plain vanilla instruments, such as swaps, at the same time. ...
Value-Added Tax (VAT)
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 is most often used in the European Union. The amount of VAT that the user pays is the cost of...
Variation Margin
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 will lose money. The maintenance margin required for each market and asset is different. The variation margin amount is the...
Value-Based Pricing
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 prices. Where it is successfully used, it will improve profitability through generating higher prices without impacting greatly on sales volumes....
Leverage
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. The balance of debt and equity is used to determine a firm’s assets – a firm with notable debt, rather...
Savings Account
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 of their liquid assets while earning a monetary return. Savings Account What is a 'Savings Account' A savings...
Fair Credit Billing Act (FCBA)
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 manage disputes regarding billing statements. In addition, any interest accrued on the billing error has to be dropped if your...
Federal Direct Student Loan Program (FDSLP)
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 and is the only government-backed student loan program in the United States. Students who wish to apply for funding must...
Family And Medical Leave Act (FMLA)
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 to provide employees unpaid leave for serious health conditions, to care for a sick family member, or to care for...
Federal Farm Credit System (FFCS)
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 enterprise comprises approximately 100 financial institutions that serve all 50 states and Puerto Rico. Explaining 'Federal Farm Credit...