CAT SPREAD
Derivative traded on the Chicago Board of Trade (CBOT) in the form an option on a catastrophe futures contract. Basically, it is a call option spread insurance companies purchase on catastrophe futures contracts. It involves simultaneously buying or selling the call option on an underlying catastrophe contract, and buying and selling same number of options at a higher strike price. Insurance firms use this option to hedge risk coverage of unfortunate events.
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Piotroski Score
A discrete score between 0-9 which reflects nine criteria used to determine the strength of a firm's financial position. The Piotroski score is ...
Jitney
An illegal scheme where two brokers trade a stock back and forth in order to raise the trading volume and rack up commissions
An ...
Hedge
A strategy used to protect an investment against loss. A hedge often consists of taking an offsetting position in a related security, such as a fut ...
Preference Shares
These are company stocks with dividends that are paid to the shareholders before common stock dividends are paid out. In case the company goes bank ...
Channel Check
Independent stock analysis on a firm based on the information given to third parties. These are most frequently conducted through conversations or ...
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