Author: todorm

A way to calculate the relative price of an index of stocks by adding the prices of all the stocks in the index and dividing by the total number of available stocks.

A market is where buyers and sellers generate their offers at the same time and any matching offers get paired and executed.

Treasury auctions reduce the costs of financing national debt with competitive bidding and liquid secondary market trading.

An option’s strike price is equal to the market value of the underlying asset.

A fund that provides investors with a diverse portfolio that includes different asset classes.

General obligation bonds, usually created to fund development projects, where the interest is paid by taxes levied solely on the beneficiaries of that project.

A notice that the options have been exercised.

Instead of paying the ask price, it is the fund manager that does it.

The minimum price that a seller is willing to take.

An option where the payoff depends on the average price of the underlying asset instead of its maturity.