What Is a Clearance Certificate? A clearance certificate is a certificate that verifies an entity has paid all its tax liabilities at the time the entity ceased to exist or transferred to a new owner. It also applies to the tax liabilities of a deceased individual when managing their estate upon death. A clearance certificate
What Are Cleared Funds? Cleared funds are the cash balances in an account that are able to be immediately withdrawn or used in financial transactions. Until funds are considered to be cleared funds they are considered to be pending, and investors or customers will be unable to conduct transactions with them. Key Takeaways Cleared funds
What Is a Clearing Broker? A clearing broker is a member of an exchange that acts as a liaison between an investor and a clearing corporation. A clearing broker helps to ensure that the trade is settled appropriately and the transaction is successful. Clearing brokers are also responsible for maintaining the paperwork associated with the
What Is a Clearing Corporation? A clearing corporation is an organization associated with an exchange to handle the confirmation, settlement, and delivery of transactions. Clearing corporations fulfill the main obligation of ensuring transactions are made in a prompt and efficient manner. Clearing corporations are also referred to as “clearing firms” or “clearing houses.” Understanding Clearing
What Is a Chi-Square Statistic? A chi-square (χ2) statistic is a test that measures how a model compares to actual observed data. The data used in calculating a chi-square statistic must be random, raw, mutually exclusive, drawn from independent variables, and drawn from a large enough sample. For example, the results of tossing a fair
What Is a Chooser Option? A chooser option is an option contract that allows the holder to decide whether it is to be a call or put prior to the expiration date. Chooser options usually have the same strike price and expiration date regardless of what decision the holder makes. Because the option could benefit
What Was the Christmas Island Dollar? The Christmas Island Dollar was the official currency of Christmas Island, which is a small Australian island located in the Indian Ocean. The currency became obsolete after the island became an Australian territory. As such, the island uses the Australian dollar (AUD) as its currency. Christmas Island is known for
What Is a Christmas Tree Options Strategy? A Christmas tree is an options trading spread strategy achieved by buying and selling six call (or six put) options with different strikes but the same expiration dates for a neutral to bullish forecast. This is termed a long call Christmas tree when using calls or a put
What Is a Christmas Tree (oil and gas)? A Christmas tree is a piece of equipment that provides flow control on a oil or gas well. Christmas trees are a vertical assembly of valves with gauges and chokes that allow for adjustments in flow control as well as injections to stimulate production. Christmas trees are
What Is Churn Rate? The churn rate, also known as the rate of attrition or customer churn, is the rate at which customers stop doing business with an entity. It is most commonly expressed as the percentage of service subscribers who discontinue their subscriptions within a given time period. It is also the rate at
