An investment strategy where 90% of the trader’s investment capital is in interest-bearing, low risk financial instruments and the remaining 10% is placed in higher risk investments.
A trader’s decision to not sell or excercise an option. This typically occurs when an option has reached its time expiration or has reached "out-of-the-money’ status.
In the Bond markets, this refers to the current price above face value. This happens when the coupon paid on the bond is higher than the market interest rate for securities that are similar. In this situation, the investor will incur a capital loss upon Bond maturity.
Refers to a buy or sell order set at a specific price higher than the current market price of the security. Examples include: stop order (buy), limit order (sell), or stop-limit (buy).
An investment strategy designed to provide positive investment performance regardless of the market environment.
A bond sold at a substantial discount on its face value and pays no coupons. Although there is no actual cash flow , the presumptive interest on an accrual bond is taxable under U.S. tax laws.
Interest on a bond or loan that has accumulated since the investment’s inception, or since the previous coupon payment, if applicable.
Shares of common stock provided to current shareholders of a company that is in place of, or in addition to a dividend distribution.
Also known as a "Discount Bond", this is a bond sold at a price below its face value and then redeemed at its face value at maturity.
A leading indicator that tracks the relationship between price and volume. Following a stock’s accumulations or distributions may signal significant price moves.
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