What Is an Exchange-Traded Derivative? An exchange-traded derivative is a financial contract that is listed and traded on a regulated exchange. Simply put, these are derivatives that are traded in a regulated environment. Exchange-traded derivatives have become increasingly popular because of the advantages they have over over-the-counter (OTC) derivatives. These advantages include standardization, liquidity, and
What Is an Exchange-Traded Option? An exchange-traded option is a standardized derivative contract, traded on an exchange, that settles through a clearinghouse and is guaranteed. Key Takeaways An exchange-traded option is a standardized derivative contract, traded on an exchange, that settles through a clearinghouse, and is guaranteed.Exchange-traded options contracts are listed on exchanges, such as the
What Is an Exchange Traded Product (ETP)? Exchange traded products (ETPs) are types of securities that track underlying securities, an index, or other financial instruments. ETPs trade on exchanges similar to stocks meaning their prices can fluctuate from day-to-day and intraday. However, the prices of ETPs are derived from the underlying investments that they track.
What Is an Excise Tax? An excise tax is a legislated tax on specific goods or services at purchase such as fuel, tobacco, and alcohol. Excise taxes are intranational taxes imposed within a government infrastructure rather than international taxes imposed across country borders. A federal excise tax is usually collected from motor fuel sales, airline tickets, tobacco
What Is the Exclusion Ratio? The exclusion ratio is simply the percentage of an investor’s return that is not subject to taxes. The exclusion ratio is a percentage with a dollar amount equal to the return on an initial investment. Any return above the exclusion ratio is subject to taxes, such as a capital gains
What Is an Exclusive Listing? An exclusive listing is a type of real estate listing agreement in which a property seller appoints and specifically authorizes one real estate broker to act as the seller’s sole agent. By contrast, in an open or non-exclusive listing, the seller retains the right to employ any number of brokers
What Is Ex-Coupon? Ex-coupon is a bond or preferred stock that does not include the interest payment or dividend when purchased or sold. A bond that is ex coupon is sold or bought with the knowledge that the investor will not receive the next coupon payment from the bond. The lack of interest payments should
What Is the Ex-Dividend Date? The ex-dividend date, or ex-date for short, is one of four stages that companies go through when they pay dividends to their shareholders. The ex-dividend date is important because it determines whether the buyer of a stock will be entitled to receive its upcoming dividend. Key Takeaways The ex-dividend date
What Are Euroyen? The term euroyen refers to all Japanese yen (JPY)-denominated deposits held outside of Japan. It can also refer to trading in yen in the eurocurrency market. A eurocurrency is any currency held or traded outside its country of issue, and euroyen thus refers to all Japanese yen (JPY) deposits held or traded
What Is a Euroyen Bond? Euroyen bond—a form of Eurobond—is a type of debt security that is denominated in Japanese yen but held outside of Japan. A Euroyen is issued by a non-Japanese company (outside of Japan) in order to attract non-Japanese investors who want exposure to the Japanese currency. Note that the Euro- prefix
