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...
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...
Naked Option
What is a Naked Option? A naked option is an investing term that refers to an investor selling an option without holding a corresponding position in the option’s underlying security. Selling naked options is considered a high-risk trading practice, as it exposes the investor to high potential loss, while only providing a limited profit. Nonetheless,...
Bilateral Agreement
What is a Bilateral Agreement? A bilateral agreement, also called a clearing trade or side deal, refers to an agreement between parties or states that aims to keep trade deficits to a minimum. It varies depending on the type of agreement, scope, and the countries that are involved in the agreement. Bilateral agreements can take...
