Business is war.
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…
Buying forward means you agree to buy something in the future. You promise to pay a set price to get that thing on a specific future date. The thing could be an asset like gold or corn. Or it could just be an amount of cash in another currency. The price is locked in today…
Buyers’ credit is money that a bank or financial company lends to someone who wants to buy things from another country. The person who borrows the money uses it to pay for the things they are buying. Then they have to pay the money back to the bank later, with extra money called interest. How…
Buy-back deductible insurance is a type of insurance policy. It lets you pay a little more money each month so you don’t have to pay your deductible if something bad happens. How Buy-Back Deductible Works A deductible is the amount of money you have to pay when you make an insurance claim before the insurance…
