Tag: gold

Legacy Hedge definition explanation

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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SAR (Saudi Riyal) definition explanation

What is SAR (Saudi Riyal)?
The currency abbreviation the Saudi riyal (SAR), the currency for Saudi Arabia. The Saudi riyal is made up of 100 halala or 20 ghirsh, and is often presented with the symbol SR. The Saudi riyal is pegged to the U.S. dollar at about 3.75 SAR. Read more for examples and further explanation including related video clips and also comments
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Troubled Asset Relief Program – TARP definition explanation

What is Troubled Asset Relief Program – TARP?
A government program created for the establishment and management of a Treasury fund, in an attempt to curb the ongoing financial crisis of 2007-2008. The TARP gives the U.S. Treasury purchasing power of $700 billion to buy up mortgage backed securities (MBS) from institutions across the country, in an attempt to create liquidity and un-seize the money markets. The fund was created by a bill that was made law on October 3, 2008 with the passage of H.R. 1424 enacting the Emergency Economic Stabilization Act of 2008. The Treasury will be given $250 billion immediately, and the President must certify additional funds as they are needed. The additional funds will be distributed as $100 billion, and then as the final $350 billion is given, Congress has the right to not approve the additional amounts. Read more for examples and further explanation including related video clips and also comments
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Diluted Founders definition explanation

What is Diluted Founders?
A slang term often used by venture capitalists to describe the process by which the founders of a startup gradually lose ownership of the company they founded. As a startup that is using venture capital for funding progresses through multiple rounds of financing, the venture capitalists providing the financing will often want more and more ownership of the company.

In other words, the founders dilute their ownership in the company in exchange for capital to grow their business. Read more for examples and further explanation including related video clips and also comments
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Cost Of Savings Index – COSI Index definition explanation

What is Cost Of Savings Index – COSI Index?
A popular index used for certain adjustable-rate mortgages (ARMs). The index is a weighted average of the rates of interest on the deposit accounts (sometimes called cost of savings) of the federally insured depository institution subsidiaries of Golden West Financial Corporation (GDW). These subsidiaries currently operate under the name World Savings.

GDW computes the COSI on the last day of each calendar month and announces it on or near the last business day prior to the fifteenth day of the following calendar month. Read more for examples and further explanation including related video clips and also comments
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iTraxx definition explanation

What is iTraxx?
A group of international credit derivative indexes that are monitored by the International Index Company (IIC). The credit derivatives market that iTraxx provides allows parties to transfer the risk and return of underlying assets from one party to another without actually transferring the assets. iTraxx indexes cover credit derivatives markets in Europe, Asia and Australia. Read more for examples and further explanation including related video clips and also comments
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Revaluation definition explanation

What is Revaluation?
A calculated adjustment to a country’s official exchange rate relative to a chosen baseline. The baseline can be anything from wage rates to the price of gold to a foreign currency. In a fixed exchange rate regime, only a decision by a country’s government (i.e. central bank) can alter the official value of the currency. Contrast to “”devaluation””. Read more for examples and further explanation including related video clips and also comments
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