A slang term describing the leader or person in charge of an organization. The CEO of a company could be referred to as the honcho or "head honcho."
An options strategy that aims to reduce (hedge) the risk associated with price movements in the underlying asset by offsetting long and short positions. For example, a long call position may be delta hedged by shorting the underlying stock. This strategy is based on the change in premium (price of option) caused by a change in the price of the underlying security. The change in premium for each basis-point change in price of the underlying is the delta and the relationship between the two movements is the hedge ratio. For example, the price of a call option with a hedge ratio of 40 will rise 40% (of the stock-price move) if the price of the underlying stock increases. Typically, options with high hedge ratios are usually more profitable to buy rather than write since the greater the percentage movement - relative to the underlying's price and the corresponding little time-value erosion - the greater the leverage. The opposite is true for options with a low hedge ratio.
The currency abbreviation for the Somaliland shilling (SOS), the currency for the Republic of Somaliland, a de facto independent republic located in northeast Africa. The Somaliland shilling is technically made up of 100 cents, but coins denominated in cents have never been issued. The Somaliland shilling is often presented with the symbol Sl. Sh., to differentiate itself from the prior currency, the Somali shilling (So. Sh.) which is no longer legal tender.It is important to note that the ISO 4217 currency code SOS still refers to the Somalia shilling, even though it is no longer in circulation, because Somaliland remains unrecognized other countries and international organizations. |||From the 1880s until 1942, Italian Somalia was a colony under Italian control. Between 1950 and 1962, the somalo was used as its currency. Other parts of Somalia used the East African shilling. In 1962, the somalo and East African shilling were replaced at par by the Somali shilling. The Italian names scellino (for shilling), and centesimo (for cent) disappeared in 1975, around the same time as the Latin alphabet was introduced. In 1991, Somaliland declared itself an independent state and introduced the Somaliland shilling in October of 1994 at a rate of 100 Somali shillings to 1 Somaliland shilling.
An individual who holds a large mortgage with little or no equity in the home. The term "home debtor" is often used to describe those who will likely never be able to pay off their mortgage because of the costs associated with home ownership, such as property taxes, mortgage payments, insurance and necessary repairs. Unfortunately, millions of individuals fall into the category of home debtor, and with the high costs of owning a home, this term is often more appropriate than the commonly used word "homeowner." It is important for any person who is looking to buy a house to understand the underlying costs of the purchase and to ensure that they can afford to make the required payments.
A U.S. law requiring a deduction from paychecks and income that goes toward the Social Security program and Medicare. Both employees and employers are responsible for sharing the FICA payments. |||FICA stipulates that there is a maximum that can be allocated to Social Security, while there is no maximum on what can go toward Medicare. once the maximum to Social Security is achieved, the contributor's FICA payment will not increase the Social Security portion but will continue to increase the contribution to Medicare. The amount of the FICA payment depends on the income of the contributor; the higher the income, the higher the FICA payment. If FICA states, for example, that 12.4% of your salary goes toward Social Security and 2.9% goes toward Medicare, half of the payment is made by you and the other half by your employer. This means you pay 7.65% (6.2% and 1.45%) of your income, while your employer pays the other 7.65%. Self-employed people, on the other hand, must pay the full amount, but half - which would represent the employer's half - is a deductible business expense.
One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific benchmark, such as a SPDR. Unlike actively managed ETFs, passive ETFs are not managed by a fund manager on a daily basis. Watch: Active Vs. Passive ETF Investing Passive ETFs are similar to unit investment trusts (UITs) in that their portfolios are reset at regular intervals. They do not generate internal capital gains like actively-managed funds. However, they differ from UITs in that they can be bought and sold on an intraday basis. Passive ETFs will typically have much lower fees than those associated with their actively-managed counterparts.
A currency with a value that fluctuates as a result of the country's political or economic uncertainty. As a result of the of this currency's instability, foreign exchange dealers tend to avoid it. Also known as a "weak currency". |||Currencies from most developing countries are considered to be soft currencies. Often, governments from these developing countries will set unrealistically high exchange rates, pegging their currencies to a currency such as the U.S. dollar.
In futures contracts, the delivery point is the place where the commodity will be delivered; the chosen location will have an effect on the net delivery price/cost. The price of commodities differs by location due to the costs of transporting them from their source to the delivery point. Thus, in order to specify a single price of a commodity for contract purposes, the delivery point is an essential detail. The delivery point is most often set at major transportation hubs for the commodity. These places are popular as a matter of convention. For example, Cushing, Oklahoma is a popular delivery point for oil contracts. Meanwhile, the Henry Hub in Erath, Louisiana is a popular delivery point for natural gas contracts. The change in prices due to the delivery point is readily observable in gasoline prices. If you go on a road trip between cities, you will most often notice gradual changes in the average price of gasoline. Prices are lowest around major oil refining centers. Where gasoline must be delivered over a very long distance, prices will be considerably higher.