A death benefit in some life insurance policies that may be paid before the policyholder's actual death. Generally speaking, one may use the accelerated death benefit only to defray medical expenses should the policyholder be diagnosed with a terminal illness. An Accelerated Death Benefit (ADB) is a benefit that can be added to your life insurance policy. It can provide cash … [Read more...]
Adjustable-Rate Preferred Stock – ARPS [Explained]
A type of preferred stock where the dividends issued will vary with a benchmark, most often a T-bill rate. preferred stock , whose dividend instead of being fixed is adjusted, usually quarterly, based on changes in the Treasury bill rate or other money market rate. The prices of adjustable rate preferreds are less volatile than fixed rate preferreds. Also called floating rate … [Read more...]
Annuitization Phase
The annuitization phase involves liquidating the annuity through fixed annuity payments for a period certain or for the remainder of the annuitant's life. Rolling over annuity funds or receiving a full lump sum from an annuity at maturity is not annuitization. For annuitization to occur, liquidation must occur solely via conversion to an income stream.The period during which an … [Read more...]
Arbitrage Trading Program – ATP Explained
A trading strategy taking a long or short position on a stock or commodity and taking the opposite position on a futures contract. This strategy often makes use of a computer program because the transactions involved can become complex and occur in rapid succession. A trader using an arbitrage trading program usually closes the positions toward the end of the futures contract … [Read more...]
Articles Of Incorporation Explained
The Articles of Incorporation (sometimes also referred to as the Certificate of Incorporation or the Corporate Charter) are the primary rules governing the management of a corporation in the United States and Canada, and are filed with a state or other regulatory agency.A set of documents filed with a government body for the purpose of legally documenting the creation of a … [Read more...]