What are Non-Marginable Securities? Non-marginable securities cannot be purchased on margin at a particular investment brokerage or financial institution. If purchasing the securities, investors must fund their full order with cash. Financial institutions will almost always maintain an internal list of non-marginable securities, which retail investors can find online or by contacting their broker. The…
What is a Non-Marketable Security? Non-marketable security refers to a security that is not traded on any major securities exchange. As a result, it is difficult to buy and sell such securities. Non-marketable securities are mainly traded as part of a private transaction. Attributes of a Non-Marketable Security 1. Highly Illiquid One of the most…
What is a Short Call? A short call is an options strategy where an investor writes (sells) a call option on a stock because he expects that stock’s price to decrease in the future. Understanding the Short Call Strategy The short call strategy creates a contract between the option writer (seller) and the option buyer…
What is Heavy Industry? Heavy industry refers to an industry that produces large industrial products, which requires large and heavy machinery and facilities and involves complex production processes. Heavy industry is dominated by large companies, as it is very capital intensive and requires significant investment in heavy equipment, massive buildings, large machine tools, and extensive…
What are Hidden Taxes? Hidden taxes, as the name suggests, include taxes imposed on consumer goods that remain hidden. They refer to taxes that are included as part of the final price and, hence, are invisible to the consumer. Hidden taxes distort the taxpayers, awareness surrounding their true tax burden and the true total cost…
What is a Sales Lead? A sales lead refers to a person or business who may become a client because they are interested in your products or services. A business can generate a sales lead by promoting at a trade show, meeting potential clients at networking events, getting referrals from existing clients, or even cold…
What is Schedule K-1? Schedule K-1 is an Internal Revenue Service (IRS) tax form used for business partnerships to report each partner’s income, deductions, and credit from the partnership for the tax year. The IRS is the United States federal agency responsible for taxes. The IRS’s Canadian equivalent is the Canadian Revenue Agency (CRA), and…
What is SEC Form S-1? SEC Form S-1 is a filing needed to register the securities of companies that wish to go public with the U.S. Securities and Exchange Commission (SEC). It is required under the Securities Act of 1933 and is also known as the Registration Statement Under the Securities Act of 1933. SEC…
What is a Foreign Exchange Swap? A foreign exchange swap (also known as an FX swap) is an agreement to simultaneously borrow one currency and lend another at an initial date, then exchanging the amounts at maturity. It is useful for risk-free lending, as the swapped amounts are used as collateral for repayment. Understanding Foreign…
What is the Hamptons Effect? The Hamptons Effect refers to a decline in trading volume right before Labor Day weekend and an increase in volume right after the weekend. The concept was first established because many investors on Wall Street leave on vacation for the Labor Day weekend and cease all trading activity. The Labor…
