Federal Deposit Insurance Corporation (FDIC)
What is the 'Federal Deposit Insurance Corporation - FDIC' The Federal Deposit Insurance Corporation (FDIC) is the U.S. corporation insuring deposits in the United States against bank failure. The FDIC was created in 1933 to maintain public confidence and encourage stability in the financial system through the promotion of sound banking practices. The FDIC insures deposits of...
Illiquid
What does 'Illiquid' mean Illiquid refers to the state of a security or other asset that cannot easily be sold or exchanged for cash without a substantial loss in value. Illiquid assets may also be hard to sell quickly because of a lack of ready and willing investors or speculators to purchase the asset. Additionally, a company may be deemed...
Accelerated Amortization
What is 'Accelerated Amortization' Extra payments made toward the reduction of a mortgage's principal balance. In the case of accelerated amortization, the loan borrower is given the option of making extra payments to their mortgage bill in order to pay off their mortgage prior to the loan settlement date. The advantage of doing so is that total interest payments are...
Life Insurance
DefinitionLife insurance is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money in exchange for a premium, upon the death of an insured person. Depending on the contract, other events such as terminal illness or critical illness can also trigger payment. The policy...
Absorbed
What is 'Absorbed' 1. In a general business sense, when a cost is treated as an expense instead of being passed on to the customer in the form of higher prices. Explaining 'Absorbed' 1. For example, if a peanut butter company's cost for peanuts increases from 50 cents per jar to $1.00 per jar...
Qualified Joint And Survivor Annuity (QJSA)
What is 'Qualified Joint And Survivor Annuity - QJSA' An annuity payment from a qualified plan or 403(b) account that provides a life annuity to the participant and a survivor annuity for the spouse after the participant's death. QJSA rules apply to money-purchase pension plans, defined-benefit plans and target benefits. They can also apply to profit-sharing and 401(k) plans, but...
UBS
What is 'UBS' A multinational diversified financial services company headquartered in Switzerland. UBS is involved in virtually all major financial activities, including retail and commercial banking, investment banking, investment management and wealth management. UBS has a major presence in the United States and has its American headquarters in New York City. Explaining 'UBS' The...
Pairs Trade
DefinitionThe pairs trade or pair trading is a market neutral trading strategy enabling traders to profit from virtually any market conditions: uptrend, downtrend, or sideways movement. This strategy is categorized as a statistical arbitrage and convergence trading strategy. The pair trading was pioneered by Gerry Bamberger and later led by Nunzio Tartaglia's quantitative group at Morgan Stanley in the...
Real Estate Investment Group
DefinitionReal estate investment clubs are clubs formed by individuals who want to invest specifically in real estate. Real Estate Investment Group What is a 'Real Estate Investment Group' A real estate investment group is an organization that builds or buys a group of properties and then sells them to investors as rental properties. In exchange for finding...
Unamortized Bond Premium
What is 'Unamortized Bond Premium' The difference between the par-value or face-value of a bond and the price above this face value, at which the bond has been issued. Unamortized bond premiums do not include any interest that has been amortized or written off. Also referred to as the amount between the face value...