Financial Intermediaries – Financial Intermediary Definition A financial intermediary is an entity that acts as the middleman between two parties in a financial transaction. Intermediaries include commercial banks, investment banks, mutual funds, or pension funds. Financial intermediaries provide a middle ground between two parties in any financial transaction. For example, […]
What Is a QTIP Trust – Qualified Terminable Interest Property Trust? A QTIP Trust is a qualified terminable interest property trust. It enables the grantor (or creator) to provide for a surviving spouse. Additionally, it allows for control of how the trust’s assets are distributed once the surviving spouse dies. […]
What Is The Free Enterprise System? A free enterprise system is an economic system where the government places very few restrictions on the types of business activities or ownership in which citizens participate. This type of system is often referred to as a free market or capitalism. In a free enterprise system, individuals […]
What Is Interest Rate Parity (IRP)? Interest rate parity (IRP) is the fundamental equation that governs the relationship between interest rates and currency exchange rates. Interest rate parity (IRP) plays an essential role in foreign exchange markets. It connects interest rates with spot exchange rates and foreign exchange rates. According […]
What is a Natural Gas ETF? Natural gas is a commodity used as a source of energy for heating, cooking, fuel, and electricity generation. It also is used in the manufacture of plastics and other organic chemicals. The price of natural gas rises and falls according to fluctuations in supply […]
What Is a Calendar Spread? A calendar spread is an options or futures trading strategy. It is established by simultaneously entering a long and short position on the same underlying asset but with different delivery dates. In a typical calendar spread, a trader buys a longer-term contract and goes short on […]