Month: July 2020

Undivided profits refer to gains from current and past years that have not been transferred to a surplus account or distributed as dividends to shareholders. Often times, financial gains or budget surpluses are set aside in a separate account designated as a surplus account, are earmarked for distribution as dividends, or assigned to another purpose such as funding a project. Essentially, undivided profit refers to corporate earnings that have been allowed to accumulate over a period of time as opposed to being disbursed for other purposes. read more

A yield spread is the difference between yields on differing debt instruments of varying maturities, credit ratings, issuer, or risk level, calculated by deducting the yield of one instrument from the other. This difference is most often expressed in basis points (bps) or percentage points.

A strangle is an options strategy where the investor holds a position in both a call and a put option with different strike prices, but with the same expiration date and underlying asset. A strangle is a good strategy if you think the underlying security will experience a large price movement in the near future but are unsure of the direction. However, it is profitable mainly if the asset does swing sharply in price.

A waiting period is the amount of time an insured must wait before some or all of their coverage comes into effect. The insured may not receive benefits for claims filed during the waiting period. Waiting periods may also be known as elimination periods and qualifying periods.

The side-by-side white lines pattern is a three-candle continuation pattern that occurs on candlestick charts. The up version is a large up (white or green) candle followed by a gap and then two more white candles of similar size to each other. The down version is a large down (black or red) candle followed by two white candles of similar size. When the pattern occurs, which is rare, it is expected that the price will continue moving in the current trend direction, down or up, as the case may be. read more

New Home Sales, also known as ‘new residential sales’ and published monthly by the United States Census Bureau, is an economic indicator that measures sales of newly built homes.

A safe harbor is a legal provision to reduce or eliminate legal or regulatory liability in certain situations as long as certain conditions are met. The term also refers to a shark repellent tactic used by companies who want to avert a hostile takeover and purposefully acquire a heavily regulated company to make themselves look less attractive to the entity considering taking them over.

Flat, in the securities market, is a price that is neither rising nor declining. Under fixed income terminology, a bond that is trading without accrued interest is said to be flat. In forex, flat refers to the condition of being neither long nor short in a particular currency, and is also referred to as ‘being square.’

Underwriting expenses are costs and expenditures associated with underwriting activity. Underwriting expenses include a wide range of expenditures, and the exact definition differs for insurers and investment banks. As a major expense category, the lower these expenditures are as a proportion of underwriting activity, the higher the profitability of the insurer or investment bank.

A junior accountant maintains and compiles financial reports and statements in compliance with government regulations and requirements. The junior accountant may analyze balance sheets, manage general ledger accounts, update financial statements, maintain accounts receivable and accounts payable, pay monthly payroll, and prepare financial reports. Accountants, auditors, and junior auditors typically work full time. Overtime hours may be required during tax season or at the end of the fiscal year. read more