Business is war.
Companies sell new stocks or bonds through all-or-none underwriting. They hire a group of investment banks called a syndicate to help them. The banks in the syndicate work together to sell all of the new securities to investors. How it Works Here’s how all-or-none underwriting usually goes: So, in all-or-none underwriting, it’s all or nothing….
An all-or-none order is a particular order to buy or sell stocks or other securities. It has a specific rule – the order must be filled or not at all. For example, let’s say you place an all-or-none order to buy 100 company shares for $50 per share. One of two things will happen: There…
Pet insurance is a type of insurance that helps pay for your pet’s medical care. You pay a little bit each month, which is called a premium. Then, if your pet gets sick or hurt, the insurance company pays most of the vet bills. Pet insurance is kind of like health insurance for humans. It…
An alien insurer is an insurance company from a country other than the United States that wants to sell insurance in the U.S. Even though the insurer is from a different country, it still has to follow the insurance rules and laws in each U.S. state where it does business. Why are they called “alien”…
Algorithmic trading, or algo trading, is when computers trade stocks, bonds, and other things in financial markets. Instead of a human stock trader deciding to buy or sell, a computer program does the trading. The computer follows a set of rules to make these choices. These rules are put into the computer as an algorithm….
An aleatory contract is a particular type of agreement. Both parties know precisely what they will give and get in a standard contract. However, in an aleatory contract, what people give or get depends on something uncertain that will happen in the future. Usually, this uncertain event is a matter of chance, like a coin…
An Aktiebolag, or AB for short, is a company in Sweden. It is the Swedish word for a limited company or corporation. Most companies in Sweden are Aktiebolags. What is an Aktiebolag? An Aktiebolag is its own “legal person.” This means it can own stuff, borrow money, hire people, and get sued separately from the…
An agreed-value policy is a special kind of car insurance people get. When you get this kind of policy, you and the insurance company say how much your vehicle is worth. You both “agree” on the “value,” so it is called an “agreed value” policy. How is agreed value different Most regular car insurance policies…
Aggregate Stop Loss Insurance is a type of insurance coverage designed for employers who self-fund their employee health benefit plans. It safeguards against unexpectedly high total claims costs during a plan year. The insurance company reimburses the employer for the excess amount if the cumulative healthcare claims exceed a predetermined limit, known as the aggregate…
Aggregate indemnity is a term used in insurance. It is the most money an insurance company will pay for all the claims from one policy, usually during a set period, like a year. The word “aggregate” means the total sum or whole amount. “Indemnity” means protection against loss or damage by paying money. So, “aggregate…
