Synonyms: annuities, annuity payment arbitrage Annuities can grow tax-deferred, meaning investors pay no taxes on the earnings until they receive payments or make withdrawals. Annuity investors pay regular premiums to the insurer, then, once the contract is annuitized, the investor receives regular payments for a set period of time.
Synonyms: American style options, American-style options, American-style option annuityĪn annuity is a contract between an investor and insurance company designed to provide a steady income stream to the investor, usually after retirement. american-style optionsĪn option contract that can be exercised at any time between when you purchase it and when the contract expires. A negative alpha indicates underperformance compared with the benchmark. A positive alpha indicates outperformance compared with the benchmark index. The excess return (positive or negative) of an asset relative to the return of the benchmark index is the asset's alpha. Synonyms: A/D ratio, advance/decline ratio alphaĪlpha refers to a measure of performance on a risk-adjusted basis as compared with a benchmark index. In technical analysis, A/D moving averages can be used to smooth out daily market gyrations and provide overbought and oversold signals. The advance/decline ratio reflects the number of shares rising compared with those falling on a given day. Synonyms: A/D line, advance/decline line, AD line advance-decline ratio It's calculated by taking the total number of advancing stocks and subtracting the total number of declining stocks from the total advances. The advance/decline line is a market breadth indicator that looks at the cumulative number of advances. As you can see in the graphic above, OID is a form of interest equal to the excess of a debt instrument's SRPM over its issue price. After that, it is the sum of the AIP and all cumulative accrued OID. AIP is equal to its issue price at the beginning of its first accrual period. The price of a debt instrument that determines the Original Issue Discount (OID) allocable to a specific period. While it doesn’t actually adjust your basis, it does reduce the OID that increases your basis by reducing the amount of OID you must report as income – it has an indirect affect. Acquisition premium is used to offset against OID and reduces the amount of OID reported as income. The difference between the adjusted basis immediately after purchase and the AIP for a debt instrument purchased below SRPM. Synonyms: 529-college-savings-account, 529 account, 529 College Savings Plans acquisition premium A 529 plan is a tax-advantaged investment vehicle designed to encourage saving for the future higher-education expenses of a designated beneficiary. Refers to its number in the Internal Revenue Code.
Synonyms: 401(k) plan, 401(k), 401k plan 529 college savings account The contributions go into 401(k) accounts, with the employees often choosing the investments based on the plan selections. All options (both calls and puts) will gain value with rising volatility.A 401(k) plan is a defined-contribution plan where employees can make contributions from their paychecks either before or after tax, depending on the plan selections. Vega is typically expressed as the amount of money per underlying share that the option's value will gain or lose as volatility rises or falls by 1 percentage point.
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