What Is a Stub? In finance, a stub is a security that is created as a result of a corporate restructuring such as a spin-off, bankruptcy, or recapitalization in which a portion of a company’s equity is separated from the parent company’s stock. Stub stocks may also be created by converting a distressed company’s bonds
What Is a Stuckholder? A stuckholder is someone who is unable to sell a stock, particularly one that is losing value because the U.S. Securities Exchange Commission (SEC) has suspended trading on that stock. Key Takeaways A stuckholder is an investor unable to sell a stock, particularly one losing value because the U.S. Securities Exchange
What Is Student Debt? The term student debt refers to money owed on a loan taken out to pay for educational expenses. Individuals can borrow student debt through the government or private sources, such as banks and other lenders. Rapidly rising college tuition costs make student debt the only option for many students and their
What Is Student Loan Forgiveness? Student loan forgiveness releases borrowers from their obligation to repay part or all of their federal student loan debt. These borrowers have taken out loans to pay for their post-secondary education. Forgiveness is available for some types of loans, but the eligibility is limited to borrowers in certain public service, educational
What Is a Stored Value Card (SVC)? A stored value card, or gift card, is a type of electronic bank debit card. Stored value cards have a specific dollar value pre-loaded to them. Credit card networks, bank card issuers, and retail merchants provide these cards as a way to provide non-cash payment cards to the
What Is a Store Of Value? A store of value is an asset, commodity, or currency that maintains its value without depreciating. Key Takeaways A store of value is an asset that maintains its value, rather than depreciating. Gold and other precious metals are good stores of value because their shelf lives are essentially perpetual.A nation’s
What Is a Story Stock? A story stock refers to a company’s shares whose value reflects expected outperformance, the culmination of some new innovation, or favorable press coverage, rather than its market value being solely based on fundamentals like assets and income. A story stock’s share price is thus often bid up on overly optimistic
What Is a Straddle? A straddle is a neutral options strategy that involves simultaneously buying both a put option and a call option for the underlying security with the same strike price and the same expiration date. A trader will profit from a long straddle when the price of the security rises or falls from
What Is a Straight Bond? A straight bond is a bond that pays interest at regular intervals, and at maturity pays back the principal that was originally invested. A straight bond has no special features compared to other bonds with embedded options. U.S. Treasury bonds issued by the government are examples of straight bonds. A
What Is a Straight Life Annuity? A straight life annuity, sometimes called a straight life policy, is a retirement income product that pays a benefit until death but forgoes any further beneficiary payments or a death benefit. Like all annuities, a straight life annuity provides a guaranteed income stream until the death of the annuity
