Coiled markets refer to markets thought of having potential to make a sizable move in one direction, but for one reason or another, is currently restrained from doing so.Basically ,a market that is believed to have the potential to make a strong move in one direction after being pushed in the opposite direction. Coiled markets refer to markets thought of having potential to … [Read more...]
ABC Agreement
ABC Agreement is an agreement between a firm that finances a seat on the New York Stock Exchange and the employee who purchases the seat. The agreement, approved by the exchange, permits the member to transfer the seat to another employee of the member firm, keep the seat and purchase a second membership for another individual designated by the lending firm, or sell the … [Read more...]
Accelerated Death Benefit – ADB
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...]