Underwriting fees are monies collected by underwriters for performing underwriting services. Underwriters work in a variety of markets including investments, mortgages, and insurance. In each situation, the underwriter’s jobs vary slightly yet each collects underwriting fees in exchange for his or her underwriting services.
A broker is an individual or firm that acts as an intermediary between an investor and a securities exchange. Because securities exchanges only accept orders from individuals or firms who are members of that exchange, individual traders and investors need the services of exchange members. Brokers provide that service and are compensated in various ways, either through commissions, fees or through being paid by the exchange itself.
Underwriting fees are monies collected by underwriters for performing underwriting services. Underwriters work in a variety of markets including investments, mortgages, and insurance. In each situation, the underwriter’s jobs vary slightly yet each collects underwriting fees in exchange for his or her underwriting services.
A roll back is an option roll strategy in which a trader exits an existing position and enters a new one with a closer expiration date. Option roll strategies, sometimes called jelly rolls, can take various forms including roll forward, roll up and roll down.
A documentary collection is a process by which an exporter’s bank collects funds from the importer’s bank in exchange for documents detailing shipped merchandise. A documentary collection is a trade transaction in which exporters allow their bank to act as a collection agent for payment of shipped goods to the buyer.
A doji is a name for a session in which the candlestick for a security has an open and close that are virtually equal and are often components in patterns. Doji candlesticks look like a cross, inverted cross or plus sign. Alone, doji are neutral patterns that are also featured in a number of important patterns. A doji candlestick forms when a security’s open and close are virtually equal for the given time period and generally signals a reversal pattern for technical analysts. In Japanese, doji means blunder or mistake, referring to the rarity of having the open and close price be exactly the same.
A debt issue refers to a financial obligation that allows the issuer to raise funds by promising to repay the lender at a certain point in the future and in accordance with the terms of the contract. A debt issue is a fixed corporate or government obligation such as a bond or debenture. Debt issues also include notes, certificates, mortgages, leases, or other agreements between the issuer or borrower, and the lender.
A petty cash fund is a small amount of cash kept on hand to pay for minor expenses, such as office supplies or reimbursements. A petty cash fund will undergo periodic reconciliations, with transactions also recorded on the financial statements. There might be a petty cash fund, which can be a drawer or box, in each department for larger corporations.
Pink sheets refer to a listing service for stocks that trade via over-the-counter (OTC). Pink sheet listings are companies that are not listed on a major exchange like the New York Stock Exchange (NYSE) or Nasdaq. The majority of stocks sold over-the-counter are low-priced penny stocks, meaning that they trade for less than five dollars per share. However, there are a large number of companies not considered penny stocks that merely opt to sell their shares through the over-the-counter network to keep share distribution activity inexpensive. Pink Sheets is also a private company that works with broker-dealers to market the shares of OTC equities they represent.
A letter of intent (LOI) is a document declaring the preliminary commitment of one party to do business with another. The letter outlines the chief terms of a prospective deal. Commonly used in major business transactions, LOIs are similar in content to term sheets. One major difference between the two, though, is that LOIs are presented in letter formats, while term sheets are listicle in nature.