MONEYNESS
A derivative relating its strike price to the price of a given asset. It refers to the intrinsic value of an option at present. There are three common forms of moneyness: in the money, out of the money, and at the money When an investor is "in the money," they stand to acquire gains by exercising the option. When an investor is "out of the money," they stand to endure profit losses. When an investor is "at the money," they stand to break even though the option is exercised.
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Asset Substitution Problem
A problem which arises when a company trades its low-risk assets for high-risk investments. This substitution moves the value from the bondholders ...
Lawful Money
Any currency, in coin or paper form, that is issued by the United States Treasury, not the Federal Reserve System. It also includes gold and silver ...
Red Clause Letter Of Credit
It refers to a specific type of letter of credit where a buyer extends an unsecured loan to a seller. This permits documentary credit beneficiaries ...
Trust Certificate
Bond or debt investment backed by other assets and serve like a collateral. Normally in a public company, the assets may be seized or sold for the ...
Cowboy Marketing
Slang term for a situation in which a firm is unaware a marketer sends massive spam emails to everyone promote the stock, instead of producing legi ...
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