A type of risk management contract that indemnifies against claims and losses arising from the ownership, maintenance, or use of aircraft, hangars, or airports including damage to aircraft, personal injury, and property damage.
Privilege allotted to existing security holders, entitling them to receive new securities free of charge
Debt instrument backed by receivables other than those arising out of real estate
A personal or business loan to purchase an automobile
A written instrument of understanding, negotiated between parties that contains contract clauses applying to future contracts between the parties during its term and contemplates separate future contracts that will incorporate by reference or attachment the required and applicable clauses agreed upon in the basic agreement. A basic agreement is not a contract.
An investment account that is owned by an individual investor and looked after by the investor..
A written instrument of understanding, negotiated between parties, that contains terms and clauses applying to future contracts --orders-- between the parties during its term, a description, as specific as practicable, of supplies or services to be provided, and methods for pricing, issuing, and delivering future orders under the basic ordering agreement. A basic ordering agreement is not a contract.
An application that enables automated payments from a banking, brokerage or mutual fund account to vendors on a scheduled basis. Automatic bill payments occur over an electronic payment system, such as the Automated Clearing House ACH
A type of risk management contract that indemnifies in the event of loss with respect to and arising from the ownership, use and operation of boilers, pressure vessels and machinery
Any interest-bearing or discounted security that normally obliges the issuer to pay the bondholder a contracted sum of money and to repay the principal amount of the debt
A bond that is issued together with one or more warrants attached as part of the offer, the warrants granting the holder the right to purchase a designated security, often the common stock of the issuer of the debt, at a specified price.
A contract between a buyer and a seller, usually on the floor of an exchange, giving the buyer or holder the right, but not the obligation, to buy the assets specified at a fixed price or formula, on or before a specified date. The seller of the call option assumes the obligation of delivering the assets specified should the buyer exercise his option.
A tradable certificate or permit representing the right to emit one tonne of carbon dioxide or the mass of another greenhouse gas with a carbon dioxide equivalent tCO2e equivalent to one tonne of carbon dioxide. Can be traded in both exchanges and in over the counter OTC transactions in voluntary markets.
A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate and can be issued in any denomination. CDs are generally issued by commercial banks and are normally insured by government agencies. The term of a CD generally ranges from one month to five years.
A type of emissions unit or carbon credit equivalent to one metric ton of carbon dioxide CO2 or its equivalent CO2e issued by the Clean Development Mechanism CDM Executive Board of the United Nations Framework Convention on Climate Change UNFCCC for emission reductions achieved by CDM projects and verified by a DOE under the rules of the Kyoto Protocol. These and similar products are traded in both general futures and options exchanges and specific emissions trading exchanges through regional or international entities such as the European Union Emission Trading Scheme.
Money in the form of a small, flat, round piece of hard material such as metal or plastic used primarily as a medium of exchange or legal tender. It is standardized in weight and produced in large quantities at a mint in order to facilitate trade. It is most often issued by a government.
A type of risk management contract that indemnifies against claims and losses arising from physical damage and liability coverages for amounts, situations, and usage not covered by a personal auto policy.
Money in the form of a type of negotiable instrument known as a promissory note, made by a bank, payable to the bearer on demand. Replaced for the most part by national banknotes issued by central banks.
A type of risk management contract that offers at least two forms of coverage including losses incurred from business crime, business automobile, boiler and machinery, marine and farm.
Commercial bonding includes a range of commercially used surety bonds: License and Permit Surety, Fidelity Surety, Fiduciary Surety, Public Official Surety, Public Official Surety, Court bonds.
A security that represents an ownership share in a corporation. Holders are typically entitled to vote and receive dividends. Other types of shares preclude or otherwise restrict voting rights. In the event of liquidation, shareholders usually rank behind the entity's creditors and holders of preferred/preference shares
Contract bonding (or construction bonding) guarantees that a contractor or developer will fully complete the construction project for which they’ve bid according to specifications and will pay all laborers, subcontractors and suppliers. This type of surety bonding includes: Bid bonds, Payment, Performance, Subdivision, Supply and Site Improvement bonds.
A bond that can be converted into other securities
Preferred shares that, at the option of the holder, are convertible into other securities, usually common shares, at a designated rate. The conversion privilege may be perpetual or limited to a specified period. Other types of these shares preclude or otherwise restrict voting rights.
Shares --common or ordinary-- that, at the option of the holder, are convertible into other securities at a designated rate. The conversion privilege may be perpetual or limited to a specific period. Other types of these shares preclude or otherwise restrict voting rights.
A type of contract that provides for payment of allowable incurred costs, to the extent prescribed in the contract. These contracts establish an estimate of total cost for the purpose of obligating funds and establishing a ceiling that the contractee may not exceed, except at its own risk, without the approval of the contracting parties
A type of life insurance policy designed to pay off a borrower's debt if that borrower dies. The face value of a credit life insurance policy decreases proportionately with an outstanding loan amount as the loan is paid off over time until both reach zero value.
An application that for a fee allows customers to exchange one currency for another currency.
Money in the form of an Internet based medium of exchange distinct from physical (such as banknotes and coins) that exhibits properties similar to physical currencies, but allows for instantaneous transactions and borderless transfer of ownership.
Protects the directors and officers of a company from claims made against them for a wrongful act such as; error, misstatement, misleading statement, omission, neglect, breach of duty
A plan that allows for the prepayment of qualified education expenses at eligible educational institutions. In the United States, these are known as qualified tuition programs, or more fully as a Section 529 plan.
Covers company against employment-related lawsuits
Key component in an environmental crediting system established by governing bodies which involves allocating debits and credits. Debits occur in situations where a natural resource has been destroyed or severely impaired and credits are given in situations where a natural resource has been deemed to be improved or preserved. Therefore, when an entity such as a business or individual has a "debit" they are required to purchase a "credit". In some cases credits are bought from "mitigation banks" which are large mitigation projects established to provide credit to multiple parties in advance of development when such compensation cannot be achieved at the development site or is not seen as beneficial to the environment. Crediting systems can allow credit to be generated in different ways. For example in the United States, projects are valued based on what the intentions of the project are which may be to preserve, enhance, restore or create (PERC) a natural resource.
A personal or business loan to purchase general equipment
A security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange.
A type of risk management contract that provides general coverage for personal and business losses for farms and ranches. Included is liability coverage and losses to structures and their contents, mobile equipment, and livestock.
Covers against potential claims arising arising from lawsuits against pension benefit administrators that are accused of not acting in accordance with the referring regulation (example U.S. Pension Reform Act of 1974.)
A type of life insurance contract in which the individual makes a lump-sum purchase payment or series of payments. In return, the insurer makes fixed dollar payments to the annuitant for the term of the contract, usually until the annuitant dies. The insurance company guarantees both earnings and principal.
A type of contract that specifies a firm price or, in appropriate cases, an adjustable price for the purchase of goods or services. Fixed-price contracts providing for an adjustable price may include a ceiling price, a target price including target cost, or both. Unless otherwise specified in the contract, the ceiling price or target price is subject to adjustment only by operation of contract clauses providing for equitable adjustment or other revision of the contract price under stated circumstances.
A type of risk management contract that provides coverage for real property owners from water damage to the structure and/or contents of their property.
The purchasing of an exporter's receivables --the amount importers owe the exporter-- at a discount by paying cash. The forfaiter, the purchaser of the receivables, becomes the entity to whom the importer is obliged to pay its debt.
A non-standardized contract between two parties to buy or to sell a commodity asset at a specified future time at a price agreed upon today. Usually arranged on an over the counter OTC basis, e.g., outside of an established exchange, the party agreeing to buy the underlying commodity asset in the future assumes a long position, and the party agreeing to sell the asset in the future assumes a short position. The price agreed upon is called the delivery price, which is equal to the forward price at the time the contract is entered into. The price of the underlying commodity, in whatever form, is paid before control of the commodity changes.
A non-standardized contract between two parties to buy or to sell a financial asset at a specified future time at a price agreed upon today. Usually arranged on an over the counter OTC basis, e.g., outside of an established exchange, the party agreeing to buy the underlying asset in the future assumes a long position, and the party agreeing to sell the asset in the future assumes a short position. The price agreed upon is called the delivery price, which is equal to the forward price at the time the contract is entered into. The price of the underlying instrument, in whatever form, is paid before control of the instrument changes.
A type of risk management contract that provides coverage to real property owners via membership in a group with a common goal
A type of life insurance policy provided by fraternal orders or societies to their members.
A standardized contract between two parties, usually on the floor of a futures exchange, to buy or sell a specified bulk commodity --agricultural, extractive, industrial or services-- of standardized quantity and quality for a price agreed upon today --the futures price-- with delivery and payment occurring at a specified future date, the delivery date, making it a type of derivative instrument. The contracts are negotiated at a futures exchange, which acts as an intermediary between the two parties and serves to minimize the risk of default by either party. Thus the exchange requires both parties to put up an initial amount of cash --performance bond--, called the margin.
A standardized contract between two parties, usually on the floor of a futures exchange, to buy or sell a specified financial asset of standardized quantity and quality for a price agreed upon today --the futures price-- with delivery and payment occurring at a specified future date, the delivery date, making it a type of derivative instrument. The contracts are negotiated at a futures exchange, which acts as an intermediary between the two parties and serves to minimize the risk of default by either party. Thus the exchange requires both parties to put up an initial amount of cash --performance bond--, called the margin.
A type of commercial risk management contract, in the form of a policy, that protects individuals against the risk of damage due to dental related conditions and maladies
A type of commercial risk management contract, in the form of a policy, that protects group members against the risk of damage due to health related conditions and maladies
A type of life insurance policy offered by an employer or other organizational entity to its workers or members.
Type of bank-issued corporate charge card specifically for travel expenses associated with group meetings or events. The meeting card is to be used to charge the meeting expense (i.e. food and beverage, meeting room, audio visual, room nights, etc).
A tax-advantaged savings plan used to accumulate funds to pay for medical expenses.
A type of loan in which the lender agrees to lend a maximum amount within an agreed period where the collateral is the borrower's equity in his or her house. The borrower is not advanced the entire sum up front, but uses a line of credit to borrow sums that total no more than the credit limit, similar to a credit card. HELOC funds can be borrowed during the draw period --typically 5 to 25 years. Repayment is of the amount drawn plus interest. The full principal amount is due at the end of the draw period, either as a lump-sum balloon payment or according to a loan amortization schedule.
A type of loan in which the borrower uses the equity of his or her home as collateral. It has a fixed term and requires specific payments over time
A type of risk management contract that covers an individual residence against damages to the house itself, or to possessions in the home. Homeowners insurance also provides liability coverage against accidents in the home or on the property.
A type of contract used when a fixed-price contract is not appropriate and the required supplies or services can be acquired at lower costs and, in certain instances, with improved delivery or technical performance, by relating the amount of profit or fee payable under the contract to the contractor’s performance.
A type of contract used to acquire goods and/or services when the exact times and/or exact quantities of future deliveries are not known at the time of contract award. There are three types of indefinite delivery contracts: definite-quantity contracts, requirements contracts, and indefinite-quantity contracts.
A type of commercial risk management contract, in the form of a policy, that protects individuals against the risk of damage due to dental related conditions and maladies
A type of commercial risk management contract, in the form of a policy, that protects individuals against the risk of damage due to health related conditions and maladies
A qualified plan established by employers to which eligible employees may make salary deferral --salary reduction-- contributions on a post-tax and or pretax basis. Employers offering such plans --called 401k plans in the United States--may make matching or non-elective contributions to the plan on behalf of eligible employees and may also add a profit-sharing feature to the plan. Earnings accrue on a tax-deferred basis.
A type of individual retirement account IRA established by individuals. Contributions made can be either tax deductible or not. Distributions can be either taxable or tax free --called a Roth IRA in the United States. Similar to other retirement plan accounts, non-qualified distributions may be subject to a penalty upon withdrawal.
A type of retirement plan designed for public sector employees, tax-exempt organizations and religious organizations. These are called 403b plans in the United States.
A type of risk management contract that covers property as follows: property in transit; property held by a bailee; property at a fixed location that is an instrument of transportation. Coverage is designed specifically for movable goods that are often at different locations.
A transactional deposit account held at a financial institution that allows for withdrawals and deposits and provides a level interest payment for maintaining balances
An exclusive right granted to the creator of an original work, usually for a limited time. Copyright may apply to a wide range of creative, intellectual, or artistic forms, or works. Copyrights are obtained through a national copyright process. While no creative work is automatically protected worldwide, there are international treaties which provide protection automatically for all creative works as soon as they are fixed in a medium. There are two primary international copyright agreements, the Buenos Aires Convention and the Berne Convention for the Protection of Literary and Artistic Works.
A set of exclusive rights, recognized internationally, granted by a sovereign state as a signatory to the Patent Cooperation Treaty PCT of 1970 to an inventor or assignee for a limited period of time in exchange for detailed public disclosure of an invention. An invention is a solution to a specific technological problem and is a product or a process.
A right to identify a service rather than a product, granted and recognized in the United States and several other countries. Before it is registered, it is common practice with some legal standing to use the service mark symbol ℠ -a superscript SM. A service mark differs from a trademark in that the mark is used on the advertising of the service rather than on the packaging or delivery of the service, since there is generally no package to place the mark on, which is the practice for trademarks. There is no global registry for servicemarks at this time.
A right, recognized internationally, for exclusively identifying the commercial source or origin of products or services, e.g., the particular business as the source of goods or services. A trademark is typically a name, word, phrase, logo, symbol, design, image, or a combination of these elements. Although there are systems which facilitate the filing, registration or enforcement of trademark rights in more than one jurisdiction on a regional or global basis it is currently not possible to file and obtain a single trademark registration which will automatically apply around the world. Like any national law, trademark laws apply only in their applicable country or jurisdiction, a quality which is sometimes known as territoriality. The inherent limitations of the territorial application of trademark laws have been mitigated by various intellectual property treaties, foremost amongst which is the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights. TRIPS establishes legal compatibility between member jurisdictions by requiring the harmonization of applicable laws.
A short-term loan made to a company based on the value of its products for sale. Those products, or inventory, serve as collateral for the loan if the business does not sell its products and cannot repay the loan.
A type of contract is a variation of the time and materials contract, differing only in that materials are not supplied by the contractor.
A type of contract that is a written preliminary contractual instrument that authorizes the contractor to begin immediately manufacturing supplies or performing services.
Money in the form of a currency that can be spent in a particular area at participating organizations. Usually it will act as a complementary currency that is to be used in addition to a national currency, rather than replace it. It may not be backed by a national government or be legal tender.
A post office box associated with a lock box service wherein a bank retrieves the payments sent to the box , processes them and deposits the funds directly into the company bank account.
An investment account that is owned by an individual investor and looked after by a hired professional money manager.
Negotiable debt instrument offered under a program agreement through one or more dealers upon request of the issuer. The program defines the terms and conditions of the note
A deferred annuity for which the underlying assets are held in a separate account, but the contract values are guaranteed if held for a specific time
An interest-bearing account that typically pays a higher interest rate than a savings account, and which provides the account holder with limited check-writing ability.
Financial instrument designated at issuance as such with a short-term life, usually twelve months or less, e.g. treasury bills, commercial paper
An application that for a fee allows customers to transfer and receive money from other accounts and entities, domestically and internationally. Commonly called a wire transfer.
Debt instrument backed by a pool of mortgages
A debt instrument, secured by the collateral of specified real estate, that the borrower is obligated to pay back with a predetermined set of payments. Mortgages are used by individuals and businesses to make large real estate purchases without paying the entire value of the purchase up front.
Money declared by a government to be legal tender; intrinsically valueless money used as money because of government decree.
An exclusive right granted to the creator of an original work, usually for a limited time. Copyright may apply to a wide range of creative, intellectual, or artistic forms, or works. Copyrights are obtained through a national copyright process.
An exclusive right to ownership of an invention that is a solution to a specific technological problem and is a product or a process. Patents are obtained through a national patent process
An exclusive right to ownership of a a name, word, phrase, logo, symbol, design, image, or a combination of these elements used in advertising rather than physical packaging that identifies the particular business as the source of goods or services. Servicemarks are obtained through a national servicemark process
An exclusive right to ownership of a a name, word, phrase, logo, symbol, design, image, or a combination of these elements that identifies the particular business as the source of goods or services. Trademarks are obtained through a national trademark process
A type of risk management contract that provides protection for all types of oceangoing vessels and their cargoes as well as legal liability of owners and shippers.
A line of credit that banks offer to their customers to cover overdrafts. Overdraft protection is initiated when a customer writes a check for more than the amount in their account.
A security designed to facilitate highly customized risk-return objectives. This is accomplished by taking multiple securitized assets, and replacing the usual payment features with non-traditional payoffs derived not from the issuer's own cash flow, but from the performance of all of the underlying assets.
A type of risk management contract that provides individual vehicle owners protection to mitigate costs associated with auto accidents, theft or other damage.
Like the preferred shares, preference shares have a prior claim on dividends, and on assets in an event of corporate liquidation or dissolution. But preferred stock would take precedence over preference stock in respect of dividends and assets that may be available for distribution. Other types of these shares preclude or otherwise restrict voting rights.
Payment of dividends to holders normally takes preference over the payment of dividends to other classes of shares. In the event of liquidation, preferred shares normally rank above ordinary shares but behind creditors of the company
Structured financial product offering capital protection
Structured financial product without any capital protection
A procurement card is a type of company charge card used for smaller purchases to achieve greater cost efficiency, control and convenience. Procurement cards are also known as purchasing cards, P-Cards or PCards. Procurement cards can be tied to either a credit card or a bank account.
Protects the insured company in the event a client alleges they have suffered a financial loss as a result of an error or an omission committed by in the delivery of professional services
Anti-takeover device that gives a prospective acquiree’s shareholders the right to buy shares of the firm or shares of anyone who acquires the firm at a deep discount to their fair market value
A contract between a buyer and a seller, usually on the floor of an exchange, giving the buyer or holder the right, but not the obligation, to sell the assets specified at a fixed price or formula, on or before a specified date. The seller of the put option assumes the obligation of buying the assets specified should the buyer exercise his option.
A single option contract between a buyer and a seller, usually on the floor of an exchange, linked to two or more underlying assets. In order for the option to pay off, all the underlying assets must move in the intended direction.
A short-term loan made to a company so it can fund the collection period for the accounts receivable arising from credit sales. Those receivables serve as collateral for the loan if the business does not collect its receivables and cannot repay the loan.
A tradeable credit, usually on an over the counter OTC basis, sometimes treated as a carbon offset, although the concepts are distinct. Whereas a carbon offset represents a reduction in greenhouse gas emissions, a REC represents a quantity of energy produced from renewable sources. To convert RECs into offsets, the clean energy must be translated into carbon reductions, typically by assuming that the clean energy is displacing an equivalent amount of conventionally produced electricity from the local grid.
A box usually located inside a bank which is used to store valuables. A safe deposit box is rented from the institution and can be accessed with keys, pin numbers or some other security pass. Title to the safe deposit box can be assumed and transferred
A type of credit card that is backed by a savings account used as collateral on the credit available with the card. Money is deposited and held in the account backing the card. The credit limit will be based on both previous credit history and the amount deposited in the account. The limit as a percent of the deposit tends to range between 50 to 100 percent.
A transactional deposit account held at a financial institution that allows for withdrawals and deposits.
A deposit account held at a bank or other financial institution that provides principal security and a modest interest rate.
A type of retirement plan established by employers, including self-employed individuals. The SEP is an IRA-based plan to which employers may make tax-deductible contributions on behalf of eligible employees, including the business owner. The employer is allowed a tax deduction for plan contributions, which are made to each eligible employee's SEP IRA on a discretionary basis.
A security designed to facilitate highly customized risk-return objectives. This is accomplished by taking a traditional single security, and replacing the usual payment features with non-traditional payoffs derived not from the issuer's own cash flow, but from the performance of the underlying asset.
A contract, usually concluded on the floor of an exchange, for buying or selling a commodity, security or currency for settlement --payment and delivery-- on the spot date, which is normally two business days after the trade date. The settlement price or rate is called spot price or spot rate. A spot contract is in contrast with a forward contract or futures contract where contract terms are agreed now but delivery and payment will occur at a future date.
A loan or security that ranks below other loans or securities with regard to claims on assets or earnings.
Privilege allotted to existing security holders, entitling them to subscribe to new securities at a price normally lower than the prevailing market price
A type of risk management contract that guarantees the debts of one party by another party. A surety is the organization or person that assumes the responsibility of paying the debt in case the debtor defaults or is unable to make the payments.
A contract specifying the exchange of one security for another in order to change the maturity for bonds, quality of issues for stocks or bonds, or because investment objectives have changed. Swap contracts are usually negotiated on an over the counter OTC basis, e.g. outside of a futures exchange. Recently, swaps have grown to include currency swaps and interest rate swaps.
A type of life insurance policy that pays a benefit in the event of the death of the insured during a specified term
A type of contract used for acquiring supplies or services on the basis of direct labor hours at specified fixed hourly rates that include wages, overhead, general and administrative expenses, and profit; and actual cost for materials.
A type of risk management contract, found predominantly in the United States, which insures against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage loans.
Securities representing a portion of assets pooled by investors run by a management company whose share capital remains separate from such assets
A type of credit card that is not secured by collateral. Customers --individuals or companies- qualify for unsecured cards based on their credit history, their financial strength and their earnings potential.
A loan that is issued and supported only by the borrower's creditworthiness, rather than by a type of collateral. An unsecured loan is one that is obtained without the use of property as collateral for the loan.
A source of credit provided to an individual or business mostly by banks, which can be revoked or annulled at the lender's discretion or under specific circumstances. These types of lines of credit are supported only by the borrower's creditworthiness, rather than by a specific property or other type of collateral.
An annuity is a contract between an individual and an insurance company that is designed to meet retirement and other long-range goals, under which the individual makes a lump-sum purchase payment or series of payments. In return, the insurer agrees to make periodic payments to the annuitant beginning immediately or at some future date. Annuities typically offer tax-deferred growth of earnings and may include a death benefit that will pay a beneficiary a specified minimum amount, such as the total purchase payments. In a variable annuity, the annuitant can choose to invest his/her purchase payments from among a range of different investment options, typically mutual funds. The rate of return on the purchase payments, and the amount of the periodic payments the annuitant eventually receives, will vary depending on the performance of the investment options selected.
Financial instrument, non-standardized and usually exchanged in over the counter OTC transactions, which permits the holder to purchase a specified amount of the underlying financial instrument, commodity, currency or other during a specified period at a specified price. Differs from a call option in that the company owning the underlying asset is the creator of the warrant, not an Exchange, and that exercise of a warrant requires creation of new stock while a call option does not.
A type of risk management contract that protects asset owners against the cost of repairs required to fix defective property or equipment provided by the asset manufacturers or maintenance contractors.
A type of life insurance policy that pays a benefit on the death of the insured and also accumulates a cash value.
Liability to third parties arising out of operations or products including bodily injury and/or property damage to third parties. Also referred to as Liability Insurance