What Is the National Association of Insurance Commissioners (NAIC)? The National Association of Insurance Commissioners (NAIC) is a nonprofit, nonpartisan organization governed by the chief insurance regulators of the 50 states, the District of Columbia, and the five U.S. territories: American Samoa, Guam, the Northern Mariana Islands, Puerto Rico, and the Virgin Islands. The NAIC sets
What Is a Naked Call? A naked call is an options strategy in which an investor writes (sells) call options on the open market without owning the underlying security. This strategy, sometimes referred to as an uncovered call or an unhedged short call, stands in contrast to a covered call strategy, where the investor owns
What is a Naked Position? In securities trading in general, a naked position refers to a securities position, long or short, that is not hedged from market risk. Both the potential gain and the potential risk are greater when a position is naked instead of covered or hedged in some way. In options trading this
What Is a Naked Put? A naked put is an options strategy in which the investor writes, or sells, put options without holding a short position in the underlying security. A naked put strategy is sometimes referred to as an “uncovered put” or a “short put” and the seller of an uncovered put is known as
What Is Naked Shorting Naked shorting is the illegal practice of short selling shares that have not been affirmatively determined to exist. Ordinarily, traders must borrow a stock or determine that it can be borrowed before they sell it short. So naked shorting refers to short pressure on a stock that may be larger than
What Is a Naked Warrant? A naked warrant, also known as a covered warrant, is a derivative that allows the holder to buy or sell a security, such as a bond or a share. Unlike a normal warrant, it is not attached to a newly issued bond or preferred stock. Naked warrants are issued by
What Is a Naked Writer? A naked writer is the seller of an options contract who does not also maintain an offsetting position in the underlying security. In other words, a naked call writer does not have an existing long position, and a naked put writer an existing short position in the underlying security, leaving
What Is Namecoin (NMC)? Namecoin is “a peer-to-peer naming system based on Bitcoin.” It’s a token for a blockchain initially forked from Bitcoin’s blockchain. A fork is a change in a blockchain that makes the new branch noncompatible to the original branch. Namecoin was developed as a blockchain and token for a decentralized domain name
What Is a Named Perils Insurance Policy? A named perils insurance policy is a home insurance (or business) insurance policy that only provides coverage on losses incurred to your property from hazards or events named on the policy. Named peril coverage may be purchased as a less expensive alternative to a comprehensive coverage or broad policies
What Is the Multiplier Effect? The multiplier effect is an economic term, referring to the proportional amount of increase, or decrease, in final income that results from an injection, or withdrawal, of capital. In effect, Multipliers effects measure the impact that a change in economic activity—like investment or spending—will have on the total economic output
