Full Ratchet
What is Full Ratchet? Full ratchet is a provision that protects an option holder, or convertible holder, from any dilution of their investment in subsequent rounds of funding. The provision guarantees that if an equity investment sold in a subsequent funding round decreases the original investor’s equity ownership percentage, then they will be compensated by...
Special Purpose Vehicle (SPV)
What is a Special Purpose Vehicle (SPV)? A Special Purpose Vehicle (SPV) is a separate legal entity created by an organization. The SPV is a distinct company with its own assets and liabilities, as well as its own legal status. Usually, they are created for a specific objective, often to isolate financial risk. As it...
Multinational Corporation (MNC)
What is a Multinational Corporation (MNC)? A multinational corporation (MNC) is a company that operates in its home country, as well as in other countries around the world. It maintains a central office located in one country, which coordinates the management of all of its other offices, such as administrative branches or factories. It isn’t...
Variable Ratio Write
What is Variable Ratio Write? Variable ratio write is an options trading strategy where, regardless of fluctuations in the price of the underlying asset, there is a limited potential of profit and unlimited losses. The limited profit potential is attributed to the investor’s pursuit to capture the premium reward for the call option. ...
Value Line Composite Index
What is the Value Line Composite Index? The Value Line Composite Index was launched in 1982. It was the first market index to trade in the futures market. The index comprises 1,681 companies drawn from the New York Stock Exchange, NASDAQ, Toronto Stock Exchange, American Stock Exchange, and over-the-counter markets. There are two main forms...
