Inflation
Inflation is well defined as a sustained increase in the general level of prices for goods and services wherein the purchasing power falls. It is measured as an annual percentage increase. As inflation rises, every penny you own buys a smaller percentage of good or service. Banks attempt to limit inflation and avoid deflation to keep the economy running...
Sale
What is a 'Sale' A sale is a transaction between two parties where the buyer receives goods (tangible or intangible), services and/or assets in exchange for money. It can also refer to an agreement between a buyer and seller on the price of a security. A sale functions as a contract between the buyer and seller of...
Home Mortgage
DefinitionA mortgage loan or, simply, mortgage is used either by purchasers of real property to raise funds to buy real estate, or alternatively by existing property owners to raise funds for any purpose, while putting a lien on the property being mortgaged. The loan is "secured" on the borrower's property through a process known as mortgage origination. This means...
Quid
What is 'Quid' The pound sterling, sometimes known as the British pound, is the currency of the United Kingdom, and the quid is a slang name for it. Quids are 100 pence, and it is said to have originated from the Latin term "quid pro quo," which literally means "something for something," or an equal exchange of goods and services...
Underlying
What does 'Underlying' mean Underlying, in equities, is the common stock that must be delivered when a warrant is exercised, or when a convertible bond or convertible preferred share is converted to common stock. The price of the underlying is the main factor that determines prices of derivative securities, warrants and convertibles. Thus, a change in an underlying results in...
Range
What is a 'Range' The difference between the low and high prices for a security or index over a specific time period. Range defines the price spread for a defined period, such as a day or year, and indicates the security’s price volatility. The more volatile the security or index, the wider the range. The range expands...
Amortization
Definition In finance, amortization refers to the process of paying off a debt over time by making scheduled, periodic payments of principle and interest. To amortize a debt is to "put it out of its misery." In accounting, amortization is the process of charging or writing off the cost of an intangible asset as an operating expenditure over the course...
Corporations
The word corporation represents an organization, which works completely separately from its owners, and it is in itself a legal body capable of presenting an argument and making decisions. The corporation works as an individual identity, because it has all the similar rights. It can buy and sell properties, and go to the court and ask for its rights....
Mortgages
What is a Mortgage? A Mortgage is a legal agreement that conveys conditional right of ownership of an asset or property by its owner to a lender as security for a loan. Mortgage is also known as lien against property or claims on property. It is a debt instrument which is secured by the collateral of specified real estate property...
Ultima
What is 'Ultima' The rate at which the vomma of an option will react to volatility in the underlying market. It is the third order derivative of the option value with respect to volatility, or the derivative of vomma with respect to the derivative of volatility. Ultima is part of the group of measures known as the...