What Is an Annual ARM Cap?

An annual ARM cap is a limit on the amount that your interest rate can increase or decrease from one year to the next. For example, if you have a 5/1 ARM with a 2% annual ARM cap, your interest rate can increase or decrease by up to 2% each year, but it can never … Read more

Common Size Balance Sheet.

A common size balance sheet is a balance sheet in which each line item is represented as a percentage of total assets. This allows for easy comparisons between companies of different sizes, and between different time periods for the same company. For example, if Company A has total assets of $100,000 and total liabilities of … Read more

Understanding Arbitrage Pricing Theory.

Arbitrage pricing theory is a theory that states that the price of a security is determined by the prices of other securities that are in some way similar. The theory is based on the idea of arbitrage, which is the practice of taking advantage of a price difference between two or more markets. The theory … Read more

What Is a Bearish Abandoned Baby?

A bearish abandoned baby is a candlestick pattern that is used to signal a potential reversal in a downtrend. It is composed of three candlesticks, with the first being a long bearish candle, followed by a doji (or small candlestick with little or no real body), and then finally a long bullish candle. The key … Read more

What Is Dialing and Smiling?

The term “dialing and smiling” refers to the process of making numerous outgoing sales calls while maintaining a positive and friendly attitude. This technique is often used by telemarketers and other sales professionals in order to increase their chances of making a sale. Additionally, by keeping a smile on their face, they are more likely … Read more

AWG (Aruban Florin) Definition.

AWG stands for Aruban Florin, and is the official currency of Aruba. One AWG is worth approximately 0.56 USD. How much is $100 US in Aruba? As of August 2020, $100 USD is worth approximately 137.65 Aruban Florins. Is the Aruban florin pegged to USD? The Aruban florin is pegged to the US dollar at … Read more

Single Monthly Mortality (SMM) Definition.

The Single Monthly Mortality (SMM) is the probability that one or more policyholders will die during a particular month. The SMM is used to calculate the expected number of policyholder deaths per month. How do I calculate monthly mortality rate? The monthly mortality rate is the percentage of people who die within a month of … Read more

Anticipation Note Definition.

An anticipation note is a debt instrument issued by a municipality in anticipation of the receipt of future revenue, such as taxes or federal grants. The municipality uses the funds from the sale of the notes to finance short-term projects or operating expenses. Anticipation notes are also known as tax and revenue anticipation notes (TRANs). … Read more

Dalal Street.

Dalal Street is the name given to the financial district of Mumbai, India. It is also sometimes used to refer to the Mumbai Stock Exchange (BSE). The street got its name from the Gujarati word dalal, meaning “broker” or “dealer”. What are the 3 major stock markets? The three major U.S. stock markets are the … Read more

Synthetic Definition.

A synthetic definition is a type of options trading strategy that involves combining two or more options contracts to replicate the payoff of another options contract. The most common synthetic definition is a call spread, which is created by buying a call option and selling a call option with a higher strike price. Can you … Read more