Settle price is an average of the trading prices in the futures market during the last few minutes of trading.
Archive for the ‘Daily Definition’ Category
Settle Price is…
Monday, August 10th, 2009The Series 7 is…
Monday, August 10th, 2009The Series 7 is an exam that individuals must pass in order to sell any type of security. In other words, if you were to go work for a big bank or brokerage and wanted to become a trader, you would need to pass the Series 7.
Shareholder’s Equity is…
Monday, August 10th, 2009Shareholder’s equity is a company’s total assets minus its total liabilities. Essentially, it’s how much a company is worth.
Market Capitalization is…
Monday, August 10th, 2009A Money Manager is…
Monday, August 10th, 2009A money manager is a finance professional who advises his or her clients on where to invest their money and manages their portfolio for them.
A Letter of Inquiry is…
Monday, August 10th, 2009A letter of inquiry (or LOI) is a one or two page description of what a nonprofit organization does and a request for financial support. Foundations and major donors often require them to be considered for funding.
The Rule of 72 is…
Monday, August 10th, 2009The “rule of 72″ is a quick and simple way to figure out approximately how long it will take for an investment to double. You just divide 72 by how much interest you earn on an investment per year – that’s it. So if you put $100 into an account that pays 6% interest, it’ll take 12 years for your principal to double to $200 (72÷6=12).
A Floor Broker is…
Monday, August 10th, 2009A floor broker is the person actually on the trading floor of a physical exchange buying and selling stocks, futures, options, commodities, or other contracts for clients. Floor brokers are also sometimes called pit brokers.
An Investment Analyst is…
Monday, August 10th, 2009An investment analyst is someone who performs market or company specific analysis for external or internal clients as part of his or her job. The investment analyst researches financial instruments and markets in order to make decisions on actionable securities.