Tag: gold

What is Golden Handshake?
A stipulation in an employment agreement which states that the employer will provide a significant severance package if the employee loses their job. A golden handshake is usually provided to top executives for loss of employment through layoffs, firing or even retirement. Payment can be made several ways, such as cash, or stock options. Read more for examples and further explanation including related video clips and also comments
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What is Long The Basis?
An individual or company that owns or has purchased a commodity such as oil, gold or lumber and then hedges its position by selling futures contracts on the commodity owned. This gives commodity holders a guaranteed price that they can sell their commodities at if the market price moves against their underlying position. Read more for examples and further explanation including related video clips and also comments
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What is Special Drawing Rights – SDR?
An international type of monetary reserve currency, created by the International Monetary Fund (IMF) in 1969, which operates as a supplement to the existing reserves of member countries. Created in response to concerns about the limitations of gold and dollars as the sole means of settling international accounts, SDRs are designed to augment international liquidity by supplementing the standard reserve currencies. Read more for examples and further explanation including related video clips and also comments
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What is Black-Litterman Model?
An asset allocation model that was developed by Fischer Black and Robert Litterman of Goldman Sachs. The Black-Litterman model is essentially a combination of two main theories of modern portfolio theory, the Capital Asset Pricing Model (CAPM) and Harry Markowitz’s mean-variance optimization theory. Read more for examples and further explanation including related video clips and also comments
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What is Trading Dollars?
Slang for a company that is spending just as much money as it is making on a product that it develops. Read more for examples and further explanation including related video clips and also comments
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What is Fool’s Gold?
A gold-colored mineral that is often mistaken for real gold. Also known as Iron Pyrite. Read more for examples and further explanation including related video clips and also comments
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What is Golden Boot?
An inducement, using maximum incentives and financial benefits, for an older worker to take “”voluntary”” early retirement. Read more for examples and further explanation including related video clips and also comments
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What is Legacy Hedge?
A hedge position held by a company that’s held for an extended period of time. Commodity companies, such as gold and oil producers, will often have legacy hedges on its reserves, which give the companies a more stable stream of revenue as the hedge provides price guarantees. Read more for examples and further explanation including related video clips and also comments
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