Month: March 2020

Form 1099-Q: Payments From Qualified Education Programs is an Internal Revenue Service (IRS) tax form sent to individuals who receive distributions from a Coverdell education savings account (ESA) or a 529 plan. These distributions, including rollovers, may be taxable, and you must determine the tax liability of any distribution using other IRS information. The form is then used by taxpayers to fill out both federal and state tax returns if the distributions received are subject to tax.

The International Bank of Reconstruction and Development (IBRD) is a development bank administered by the World Bank. The IBRD offers financial products and policy advice to countries aiming to reduce poverty and promote sustainable development. The International Bank of Reconstruction and Development is a cooperative owned by 189 member countries.

Short selling is an investment or trading strategy that speculates on the decline in a stock or other securities price. It is an advanced strategy that should only be undertaken by experienced traders and investors.

Underlying retention is the net amount of risk or liability arising from an insurance policy or policies that is retained by a ceding company after reinsuring the balance amount of the risk or liability. The degree of underlying retention will vary depending on the ceding company’s assessment of the risks involved in retaining part of the policy liability and the profitability of the insurance policy.

A buy stop order instructs a broker to purchase a security when it hits a strike price that is higher than the current spot price. Once the price hits that strike, the buy stop becomes a market order, fillable at the next available price. This type of order can apply to stocks, derivatives, forex or a variety of other tradable instruments. The buy stop order can serve a variety of purposes with the underlying assumption that a share price that climbs to a certain height will continue to rise.

Treasury Inflation-Protected Security (TIPS) are a type of Treasury security issued by the U.S. government that is indexed to inflation in order to protect investors from a decline in the purchasing power of their money. As inflation rises, TIPS adjust in price to maintain its real value.

A warehouse receipt is a type of documentation used in the futures markets to guarantee the quantity and quality of a particular commodity being stored within an approved facility.

A dove is an economic policy advisor who promotes monetary policies that usually involve low interest rates. Doves tend to support low interest rates and an expansionary monetary policy because they value indicators like low unemployment over keeping inflation low. If an economist suggests that inflation has few negative effects or calls for quantitative easing, then he or she is often called a dove or labeled as dovish.

The put-call ratio is an indicator ratio that provides information about relative trading volumes of an underlying security’s put options to its call options. The put-call ratio has long been viewed as an indicator of investor sentiment in the markets, where a large proportion of puts to calls indicates bearish sentiment, and vice versa. Technical traders use the put-call ratio as an indicator of performance and as a barometer of overall market sentiment. Put-call ratios on broader indexes such as the S&P 500 are also used as more general gauges of market climate.