No Action Letters (NALs) are a type of guidance issued by regulatory agencies to individuals or companies seeking to engage in a particular activity. In the context of the securities industry, NALs are issued by the Securities and Exchange Commission...

A calendar spread, also known as a time spread or horizontal spread, is a type of options strategy that involves buying an option with a longer expiration date and selling an option with a shorter expiration date on the same underlying asset. This...

Individual traders will buy and sell through intermediaries. Investment firms are the primary employers of institutional traders. Stock traders provide liquidity to the market and define their strategies using a variety of methods and styles....

Investors should be aware of the benefits of a share split. Lower share prices attract many smaller investors. Stock market activity increases a company's price, which benefits well-positioned investors. Share splits are more likely to be noticed by...

An affinity credit card is a type of credit card that bears the name and logo of the organization on its surface. When a financial institution collaborates with such an organization to create an affinity credit card, the financial institution usually...

The CBOE Volatility Index, or VIX, is the most recognized tool to trade financial market volatility. It measures 30-day expected or forward-looking volatility of the U.S. stock market based on the S&P 500 options.

Treasury stock refers to the portion of a company's shares held in its own treasury. The shares are not included in the total number of outstanding shares listed, and neither pay dividends nor have voting rights (because a company cannot pay itself,...

There is a relationship between stocks and indices, but it is not a direct one. A stock is a share of ownership in a particular company, while an index is a statistical measure of the changes in a group of stocks.

It was established shortly after the Bretton Woods Agreement collapsed, with the goal of tracking the dollar's performance in relation to the currencies of the major US trading partners. It has been tradable as a futures contract since the 1980s, and...

There is no formal list of blue-chip stocks, but the components represented in a well-known index are typically considered to be such and are referred to as blue-chip indices - this includes global indices such as the Dow Jones, the DAX, the CAC 40,...