Horizontal Spread A horizontal spread (more commonly referred to as a calendar spread) is a form of spread of options involving the purchasing of the same underlying…
Risk Tolerance The degree of uncertainty in investment returns is risk tolerance; it is the capacity of an investor to mentally tolerate the prospect of losing money…
Exchange-Traded Derivatives An exchange-traded derivative is a listed financial agreement that trades on a regulated exchange. It offers an overview of the globally listed markets for futures…
Exchange-Traded Notes (ETN) “Exchange-traded” means the buying and selling of ETNs on a national stock exchange, whereas “note” refers to the fact that an ETN is simply a…
Direct Stock Purchase Plan (DSPP) A direct stock purchase plan (DSPP) enables investors to purchase directly from the company the shares of a company’s stock. It is a way for…
Stock Appreciation Rights (SARs) Stock appreciation rights (SARs) refer to the right to obtain compensation equal to a rise in the common stock price of the company over the…
Depository Transfer Check (DTC) A Depository Transfer Check (DTC) is used by a designated collection bank to deposit a corporation’s daily receipts from various locations, and it is also…
Validation Code A validation code also referred to as a CVV, CV2, or CVV2 code is a sequence of three or four numbers issued on the front…
Employee Savings Plan (ESP) A pooled investment portfolio that is sometimes matched by an employer is an employee savings plan (ESP). It is provided by an employer who requires…
Employee Stock Purchase Plan (ESPP) A tax-efficient Employee Stock Purchase Plan (ESPP) refers to a stock scheme that requires participating employees to purchase the stock of their company at a…
Calendar Spread A calendar spread also referred to as a time spread or horizontal spread, is a spread of options or futures generated by simultaneously entering a…
Vertical Spread A vertical spread is a trading strategy in options trading that involves trading two options at the same time; it is the most fundamental spread…