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Investments glossary

Naked Call

A naked call is an options strategy in which an investor writes (sells) call options on the open market without owning the underlying security. This stands in contrast to a covered call strategy, where the investor owns the underlying security on which the call options are written. This strategy is sometimes referred to as an uncovered call or a short call.

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Investments glossary

U.S. Department of Veterans Affairs

The U.S. Department of Veterans Affairs, established in 1988 by President Ronald Reagan, elevated the previous Veterans Administration to a Cabinet-level executive department, giving it a new name that allowed it to still be referred to by its longtime acronym, the “VA.” It comprises three administrations – the Veteran’s Health Administration, evolved from the first federal solder’s facility established for veterans of the Union Army after the Civil War and later joined by a system of veterans hospitals, clinics and nursing home units; the Veterans Benefits Administration, which supervises the VA Home Loan Guaranty Program and other benefits, including employment and education; and the National Cemetery Administration, which runs 147 national cemeteries across the country. read more

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Ethereum 2.0 POS profit 5% or 14% or is it really profitable?

According to some latest articles that talk about Ethereum (ETH) next coming event which is the switch from POW (proof of work) to POS (proof of stake), in other word from mining to staking, in other other word today you use a GPU to dig for Ethereum coins but soon will be investment like program that required you to have initial 32 ETH or so locked in to get profit out of it.

So when will this Ethereum 2.0 happening? Although there has been a lot of delay since the beginning of 2020, the most recently scheduled date is somewhere in June 2020. read more

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Investments glossary

Environmental Economics

Environmental economics is an area of economics that studies the financial impact of environmental policies. Environmental economists perform studies to determine the theoretical or empirical effects of environmental policies on the economy. This field of economics helps users design appropriate environmental policies and analyze the effects and merits of existing or proposed policies.

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Investments glossary

Market Sentiment

Market sentiment refers to the overall attitude of investors toward a particular security or financial market. It is the feeling or tone of a market, or its crowd psychology, as revealed through the activity and price movement of the securities traded in that market. In broad terms, rising prices indicate bullish market sentiment, while falling prices indicate bearish market sentiment.

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Investments glossary

Tax Shield Definition

A tax shield is a reduction in taxable income for an individual or corporation achieved through claiming allowable deductions such as mortgage interest, medical expenses, charitable donations, amortization, and depreciation. These deductions reduce a taxpayer’s taxable income for a given year or defer income taxes into future years. Tax shields lower the overall amount of taxes owed by an individual taxpayer or a business.

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Investments glossary

Annualized Income Installment Method

The annualized income installment method calculates a taxpayers’ estimated tax installment payments and helps to decrease underpayment and penalties incurred due to their fluctuating income. Taxpayers must pay quarterly installments of their estimated tax in amounts figured by the regular installment method. When a taxpayer has a fluctuating income it often causes them to underpay on the quarterly estimates leading to underpayment penalties. Through the use of the annualized income installment method, taxpayers may more accurately estimate their taxes.

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Investments glossary

Non-GAAP Earnings

Non-GAAP earnings are an alternative accounting method used to measure the earnings of a company. Many companies report non-GAAP earnings in addition to their earnings based on Generally Accepted Accounting Principles (GAAP). These pro forma figures, which exclude one-time transactions, can sometimes provide a more accurate measure of a company’s financial performance from direct business operations.

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Investments glossary

Economic Shock

An economic shock refers to any change to fundamental macroeconomic variables or relationships that has a substantial effect on macroeconomic outcomes and measures of economic performance, such as unemployment, consumption, and inflation. Shocks are often unpredictable and are usually the result of events thought to be beyond the scope of normal economic transactions. Economic shocks have widespread and lasting effects on the economy, and are the root cause of recessions and economic cycles in Real Business Cycle Theory.

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Investments glossary

Spinning Top Candlestick Definition and Example

A spinning top is a candlestick pattern with a short real body that’s vertically centered between long upper and lower shadows. The candlestick pattern represents indecision about the future direction of the asset. Neither the buyers nor the sellers could gain the upper hand. The buyers pushed the price up during the period, and the sellers pushed the price down during the period, but ultimately the closing price ended up very close to the open. After a strong price advance or decline, spinning tops can signal a potential price reversal, if the candle that follows confirms.