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Asset-Backed Securities – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What are Asset-backed Securities?An asset-backed security (ABS) refers to a security that is collateralized by a pool of financial assets. This asset-backed security derives its income payment and values from the pool of assets and serves as its collateral. An ABS...

Income Deposit Security – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is an Income Deposit Security?An income deposit security is a hybrid financial security. It is considered a hybrid because it shares the qualities of both a high-yield note and common stock. Another name for it is enhanced income security. The sole purpose of...

Jitney – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is a Jitney?Jitney is a broker that is able to perform stock exchange trade on behalf of another person who is not able to. The concept also refers to a stock trading that is fraudulently done to increase stock volume. As such, the fraudulent trading may involve...

Knock Out Option – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is a Knock-Out Option?A knock-out option is an option contract that will automatically expire even before the set expiration date arrives when a specified price level of underlying asset is reached. This option sets a cap on the price level a contract option can...

Keogh Plan – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is a Keogh Plan?Named after its creator, a Keogh plan is a retirement plan for self employed people including owners of small businesses like sole proprietorships and partnerships. Like any other saving plan, insurance Keogh plans are qualified by IRS (Internal...

Inflation Protected Securities – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What are Inflation Protected Securities?In trading parlance, Inflation Protection is the adjustment of value in the price of securities, with respect to inflation. Prices of securities, their payouts, and dividends, are adjusted periodically in keeping with the rate...
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