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…
What is the Healthcare Sector? The healthcare sector is one of 11 S&P sectors or GICS (Global Industry Classification Standard) used by the financial community. It is consistently in the top three most weighted sectors of the S&P 500 Index. The sector encompasses a wide range of businesses that pertain to the creation and provision…
What is Freddie Mac? Freddie Mac is the unofficial title for the Federal Home Loan Mortgage Corporation, a federally-backed government-sponsored enterprise created in 1970 to broaden the secondary mortgage market and deflate interest rate risk for banks. According to its charter, Freddie Mac “establishes secondary market facilities for residential mortgages [and] provides that the operations…
