Underinsured Motorist Coverage Limits Trigger
What is 'Underinsured Motorist Coverage Limits Trigger' One of the two triggers that can be specified by an insured party to protect against losses caused by an accident with a driver who has insufficient insurance. The underinsured motorist coverage limits trigger ensures that in the event of an accident caused by a driver with inadequate insurance, the...
Dealer
What is a 'Dealer' A dealer is a person or firm in the business of buying and selling securities for their own account, whether through a broker or otherwise. A dealer is defined by the fact that it acts as principal in trading for its own account, as opposed to a broker who acts as an agent...
Tangible Cost
What is ‘Tangible Cost' A quantitative expense that can be traced back to a specific source or item. Tangible costs are expenditures incurred as a result of activities such as acquiring materials, paying staff, and renting equipment. Explaining ‘Tangible Cost' A lot of the time, tangible costs are connected with products that also have accompanying intangible costs. An intangible cost is a...
Short Position
DefinitionIn finance, a short sale is the sale of an asset that the seller does not own. The seller effects such a sale by borrowing the asset in order to deliver it to the buyer. Subsequently, the resulting short position is "covered" when the seller repurchases the asset in a market transaction and delivers the purchased asset to the...
Lagging Indicator
What is a 'Lagging Indicator' A lagging indicator is a measurable economic factor that changes only after the economy has begun to follow a particular pattern or trend. It is often a technical indicator that trails the price action of an underlying asset, and traders use it to generate transaction signals or confirm the strength of a...
Backing Away
What is 'Backing Away' Failure by a market maker in a security to honor the quoted bid and ask prices for a minimum quantity. Backing away constitutes a serious violation of industry regulations. NASD Regulation Inc uses an automated market surveillance system to enable the resolution of backing-away complaints in real time. Explaining 'Backing Away'...
Pass-Through Certificate
DefinitionA pass-through certificates is an instrument that evidences the ownership of two or more equipment trust certificates. In other words, equipment trust certificates may be bundled into a pass-through structure as a means of diversifying the asset pool and/or increasing the size of the offering. The principal and interest payments on the equipment trust certificates are "passed through" to...
Qualifying Domestic Trust (QDOT)
Qualifying Domestic Trust (QDOT) What is 'Qualifying Domestic Trust - QDOT' A type of trust that allows taxpayers who are not U.S. citizens to claim the marital deduction for estate-tax purposes. Spouses without citizenship are not eligible for the marital deduction without a qualifying domestic trust. QDOTs are similar to QTIP trusts in that the marital...
Oman Rial (OMR)
What is 'Oman Rial - OMR' The currency of Oman. The Omani rial is broken into smaller units, called baisa, and is found in both coin and banknote form. It is managed by the Central Bank of Oman. Explaining 'Oman Rial - OMR' The Omani rial was created during the early 1970s, as a...
Underlying Mortality Assumption
What is 'Underlying Mortality Assumption' Projections of expected death rates used by actuaries to estimate insurance premiums and pension obligations. Underlying mortality assumptions are based on mortality tables, which are statistical tables of expected annual mortality rates. Because of the critical importance of the underlying mortality assumption, actuaries have to follow guidelines set by pension and insurance...