Average Cost Basis
What is Average Cost Basis? Average cost basis is defined as the means to attribute the purchase price to shares underlying a mutual fund or an account managed by a custodian (broker). It is calculated as the total amount paid to purchase the mutual fund or investment in a custodian account divided by the total...
Voluntary Carbon Market
What is the Voluntary Carbon Market? The voluntary carbon market enables private investors, governments, non-governmental organizations, and businesses to voluntarily purchase carbon offsets to offset their emissions. The largest category of buyers comprises private firms that purchase carbon offsets for resale or investment. Companies that are unable to reduce their emissions can purchase carbon offsets...
Annualized Total Return
What is an Annualized Total Return? An annualized total return is the return earned on an investment each year. It is computed as a geometric average of the returns of each year earned over a period. It is also known as the Compounded Annual Growth Rate (CAGR). However, while it gives investors a performance preview of...
Naked Shorting
What is Naked Shorting? Naked shorting is the practice of selling short a stock or other tradeable security without first borrowing the shares to sell or arranging to borrow them. Naked shorting is not illegal in every jurisdiction, but it is prohibited in the United States. Naked Shorting vs. Ordinary Short Selling In ordinary short...
Naked Put
What is a Naked Put? A naked put refers to a situation where an investor sells a put option without already having an equivalent short position in the option’s underlying security. It is one of the ways that an investor can profit from changes in the price of a security without directly investing in the...
