Book value refers to the accounting value of an asset or company. The book value of an asset is its cost minus any depreciation. The book value of a company is the total value of all its physical assets, which excludes any intangible assets, minus its liabilities. In both cases, the book value is essentially […]
The New York Mercantile Exchange, or NYMEX, is the largest exchange for physical commodity futures in the world. The NYMEX has been part of the Chicago Mercantile Exchange Group, or CME, since 2008, and offers global benchmarks for key derivatives areas, including energy, agricultural products and metals. The NYMEX is overseen by the Commodity […]
Wealth is the total assets minus the total liabilities of an individual, organization or government. Wealth is effectively the sum of resources available for disposal at any given time. Wealth is calculated according to current market rates, or appraised estimates when an effective market pricing mechanism does not exist. The Significance of Wealth Wealth is […]
Capital expenditure, or CapEx, is the money spent by a company on buying, improving and maintaining physical assets, including buildings, machinery and property. CapEx is often a major component of a company’s expansion efforts, though large companies with existing businesses may also have substantial capital expenditures strictly from the maintenance and upgrading of their existing […]
The American Stock Exchange, or AMEX, is the 3rd biggest exchange by volume in the United States. The AMEX is headquartered in New York City, and currently handles approximately 10% of all the securities traded in America. While the AMEX was originally envisioned as a competitor to the dominant NYSE in American equity trading, it […]
An asset is any resource that is considered to have economic value and has a clearly defined legal ownership. An asset can be tangible, such as a factory or precious metal, or intangible, such as a patent or logo. The Making of an Asset The key defining feature of an asset is its exclusive ownership […]
A CUSIP number is the unique registration number given to every publicly traded equity share and bond in the United States and Canada. The CUSIP system is overseen by the Committee on Uniform Securities Identification Procedures. Purpose of the CUSIP System The CUSIP system was created by the American Bankers Association and Standard & Poors […]
Securities fraud is a variety of activities that are considered to undermine the integrity and efficiency of the securities markets. Securities Fraud Enforcement Securities fraud can fall afoul of one or both of civil regulators and criminal enforcement bodies. Civil infractions are generally regulated by the Securities and Exchange Commission, while criminal infractions are enforced […]
The Iron Condor is an options trading strategy that relies on low volatility to create a non-directional position with limited risk and limited profits. Establishing an Iron Condor An options trader establishes an Iron Condor position by selling an out of the money put option, buying an out of the money put option with an […]
The Greeks are a set of statistical measures used in options trading that are each represented by a letter from the Greek alphabet. Since options are priced based on the projected potential future price action of the underlying security, these statistical measures are essential to understanding the price of options. While many options traders use […]
