A call on the maximum is a special kind of deal that you can make without needing a middleman. You pay some money, called a premium, to buy the right to get a payout later. How big that payout is depends on two main things – a strike price that is set at the start…

A call on the best of n-assets is a special kind of option. An option is a contract. It gives the person who buys it the right to buy or sell something later. Options are a type of thing called derivatives. A call on the best of n-assets option is an over-the-counter option. This means…

A call on a put is a type of compound option. It gives you the right to buy a put option later if you need it. You pay some money now to have the choice to get the put option in the future. Why Would You Want One? You might want a call on a…

A call on a call is a special kind of option. It lets you buy another option, instead of an underlying asset directly. The option you can buy with a call on a call is a regular call option. A regular call option lets you buy an underlying asset, like a stock, at a set…

Call money is money that you put in a special bank account. This special account pays you interest. Interest is extra money the bank gives you for keeping your money in their bank. The special thing about call money is that you can take it out of the account whenever you want. But, you have…

Collateralized mortgage obligations, or CMOs for short, are a type of investment that’s backed by mortgages on homes and buildings. Banks and other lenders give people money to buy houses. The lenders then take a whole bunch of those mortgage loans and package them together into a CMO. How CMOs Get Chopped Up The CMO…

A bank vault is a safe place inside a bank. It is where the bank keeps things that are worth a lot of money. These things are called securities. Securities can be paper money, coins, gold, silver, bonds, or other valuable items. The vault keeps the securities from being stolen or damaged. Bank vaults are…

A cafeteria plan is a special type of employee benefit plan. Companies offer it to their workers. It lets employees pick the benefits they want, like different kinds of insurance and retirement plans. These benefits are given to workers instead of extra pay. Why It’s Called a “Cafeteria Plan” It’s called a “cafeteria plan” because…

“Buying the dips” became popular investing slang for purchasing assets when their prices fall below recent levels. The term comes from looking at price charts—when prices drop, they create “dips” or valleys in the chart’s line. Investors who buy during these dips aim to profit when prices eventually recover and rise again. Types of Dips…