EDU Articles
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What Does 'Buy to Cover' Mean?
‘Buy to Cover’ is a term that applies when an investor buys shares of a security that they had previously sold short.
When an investor sells a security short, it means they are selling shares they do not actually own, in hopes that the price of the stock falls. If the price does fall, an investor could then ‘buy to cover’ at a lower price and then return the shares to the broker that lent them, thus realizing the profit in the price difference.
In some instances, an investor has to ‘buy to cover’ if the short sale looks like it’s going in the wrong direction, and the broker wants the investor to cover it.
What does 'Short Covering' mean?
What Does Having a Long Position Mean?
What is a currency swap?
In a currency swap, institutions will loan each other an equal principal amount at the current exchange rate (1-30 yrs)
What is a Corporation?
A corporation is a business entity which has filed articles of incorporation
What are the Best Internet Sources for Financial Information?
There are plenty of well-informed and trustworthy sources out there, too. There are literally millions of websites
How do my IRA Withdrawals Get Taxed During Retirement?
Traditional IRAs, as well as SEPs, SIMPLEs, and 401(k)s are all taxed as income in retirement. Roth IRAs are not taxed
Do I Need Life Insurance if I have an Annuity?
Whether or not a life insurance policy would be a wise addition depends on the options available in your annuity
What are SPDRs?
SPDRs (Spiders) are index ETF shares that track the S&P 500, or could refer to other similar ETFs tracking other indices
What is an Abandonment Option?
An abandonment option outlines the terms by which either party in an agreement can choose to cease their involvement
What is a Reverse Mortgage?
In a reverse mortgage, instead of paying to for your home, you’re getting paid for your home. It is considered a loan
What is a Home Equity Loan?
Home equity loans give a homeowner the ability to borrow a lump sum against their home equity. Homeowners have the...
What is Form 706: Estate Tax and Generation-Skipping Transfer Tax?
The Form 706 is required not only if there is a tax implication for an estate, but also to claim exclusions