Margin
What is Margin? The term “margin” refers to the amount deposited with a brokerage when borrowing money to buy securities. When an investor buys securities on margin, it means they are using borrowed money from the brokerage to invest in securities. In such a case, the broker acts as the lender; the investor acts as...
Deposit Multiplier
What is Deposit Multiplier? The deposit multiplier is essentially the amount of money kept in the reserve account of a bank (as a requirement) to allow for continued functionality, to meet the withdrawal demands of their clients, and to limit the potential risks associated with the depletion of their supplies. The deposit multiplier is the...
Hot Issue
What is a Hot Issue? A hot issue is an initial public offering (IPO) with overwhelming public demand that sells more than its initial offer price on the first day of the public price immediately after it starts trading. Prior to the offering, the issuing company generates an interest in the offering through staged roadshows....
Indexed Annuity
What is an Indexed Annuity? An indexed annuity is a financial product that pays out a return based on the performance of a linked index. The contract is backed by an insurance company and is popular among retirees because it provides a relatively steady stream of income with downside risk protection. However, it also severely...
Fill or Kill (FOK)
What is Fill or Kill (FOK)? A fill or kill (FOK) order is a conditional order requiring the transaction to be executed immediately and to its full amount at a stated price. If any of the conditions are broken, then the order must be automatically canceled (kill) right away. Brokers usually use the FOK type...
