Archives: Resources

Selloff

What is a Selloff? A selloff is the selling of a large volume of securities within a short time, causing a corresponding decline in its price. It occurs when a large number of a company’s shareholders sell due to various factors such as profit warnings, the threat of technological disruption, or fears of increased competition…

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Selling Away

What is Selling Away? Selling away is an inappropriate practice by an investment professional – such as a financial adviser or stockbroker – who sells or solicits a client to purchase securities not approved by the brokerage firm with which he/she is affiliated. Generally, brokerage firms keep a list of approved securities products that their…

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Selling Group

What is a Selling Group? A selling group comprises dealers and brokers involved in marketing or selling a new security issue or secondary issue of equity or debt. The selling group buys securities in bulk directly from the issuer and then sells them to the members of the selling group at a markup on what…

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Seller’s Market

What is a Seller’s Market? A seller’s market is a market where the demand for a product exceeds its supply. Generally, a seller’s market is characterized by a shortage of goods for sale, giving the seller the power to fix the price of commodities. A seller’s market is common in the real estate sector, where…

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Seller’s Option

What is Seller’s Option? Seller’s option is a settlement option that allows a seller to set the timelines for the delivery of the underlying asset and determine when the final settlement will occur. Such a type of settlement option is available in forward contracts. It allows the seller some leeway in the specifications of a contract,…

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Sell to Close

What is Sell to Close? Sell to close is an options trade order and refers to closing out (selling) a long position in an options contract. Understanding Sell to Close A long options contract comes with three outcomes: 1. The options contract expires worthless. In long call options, it occurs when the underlying asset’s price…

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Sell to Open

What is Sell to Open? Sell to open is an options trade order and refers to initiating a short option position by writing or selling an options contract. When an individual sells to open, he/she is initiating a short options position. It is useful to think of a sell to open as “opening an options…

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Equity Co-Investment

What is Equity Co-Investment? An equity co-investment (or co-investment) is a minority investment made by the co-investor into a company. The investment is made alongside a financial sponsor. An example of a co-investor includes institutional investors such as an insurance company, pension fund, or endowment. The term minority investment means the co-investor owns less than…

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Green Bond

What is a Green Bond? A green bond is a debt security issued by an organization for the purpose of financing or refinancing projects that contribute positively to the environment and/or climate. A green bond is alternatively known as a climate bond. How It Works Green bonds are fundamentally the same as conventional bonds: a…

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Exchange-Traded Note (ETN)

What is an Exchange-Traded Note (ETN)? An exchange-traded note (ETN) is a loan instrument issued by a financial entity, such as a bank. It comes with a set maturity period, usually from 10 to 30 years. It can be traded based on demand and supply. Unlike other debt tools, exchange-traded notes will not produce any…

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