What Does it Mean to Accept Risk? To accept risk is a risk management strategy where the identified risk is considered acceptable enough that no expense or effort is made trying to limit or avoid it. Risk acceptance occurs when a business or individual decides that the potential loss from […]
Investing
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What are TruPS – Trust Preferred Securities? TruPS are trust-preferred securities issued by bank holding companies (BHC). They have some characteristics of both preferred stock equity and subordinated debt. Trust preferred securities (TruPS) are hybrid securities. They are issued by banks and bank holding companies (BHCs) beginning in 1996. The […]
What Is Functional Obsolescence? Functional obsolescence is when an asset becomes less useful because of an outdated design that cannot be readily renovated or modernized. It is the reduction of an object’s usefulness or desirability because of an outdated design feature that is difficult to change or update. The application […]
What is a Dragonfly Doji Candlestick Pattern? A dragonfly doji candlestick pattern forms when a trading candlestick has the same high, open, and closing prices forming a capital letter “T” The Dragonfly Doji is typically interpreted as a bullish reversal chart pattern when it occurs at the bottom of a […]
What Is a Habendum Clause? The habendum clause in a deed, lease, or mineral rights contract defines the interests, property rights, and specific details of ownership. A habendum clause is a contract provision. It deals with property rights, interests, and other aspects of ownership granted to one of the parties […]
What Is the Hedge Ratio? The hedge ratio is the hedged position value divided by the total position value. A ratio of 1 or 100% means that the position is fully hedged and a ratio of 0 means it is not hedged at all. The ratio is the comparative value […]