by Henry Liverman | May 1, 2021 | Market Definitions
A debt security issued by a government to fund federal spending or programs. Government bonds represent debts issued by a government itself. They are generally considered to be low-risk investments as they’re backed by the issuing government. The US Treasury...
by Henry Liverman | May 1, 2021 | Market Definitions
The general decline in the price of goods and services. Generally, deflation occurs when the supply of money and credit contract, but prices can also decline due to increased productivity and technological improvements. Whether is economy or money supply are in a...
by Henry Liverman | May 1, 2021 | Market Definitions
A type of debt security that is issued by a firm and sold to potential investors. In this system, the company receives the capital it needs, and the investors are paid a pre-established number of interest payments (with a fixed or variable interest rate). When the...
by Henry Liverman | May 1, 2021 | Market Definitions
A strategy for options trading designed to imitate a long stock position. A synthetic long stock is created by purchasing at-the-money calls and then selling an equivalent number of at-the-money puts with the same expiration date. The downside of a synthetic long...
by Henry Liverman | May 1, 2021 | Market Definitions
An immediate injection of financial support into a company or organization facing imminent bankruptcy or collapse. Bailouts can take the form of loans, cash, bonds, or stock purchases. They may or may not require financial reimbursement. A bailout may also be...
