What Is a Special Purpose Vehicle (SPV)? A special purpose vehicle, also called a special purpose entity (SPE), is a subsidiary created by a parent company to isolate financial risk. Its legal status as a separate company makes its obligations secure even if the parent company goes bankrupt. For this reason, a special purpose vehicle
What Is the S&P Global Broad Market Index (BMI)? S&P Global Broad Market Index (BMI) is a market capitalization-weighted index maintained by Standard and Poor’s (S&P) providing a broad measure of global equities markets. The index includes approximately 11,000 companies in more than 50 countries covering both developed and emerging markets, including U.S. stocks. The index
What Is a Squawk Box? A squawk box is a term used for an intercom speaker that a brokerage firm’s analysts or traders use on trading floors or desks. Squawk boxes can be found in investment banks, along with stock brokerages, and on exchange floors. A squawk box allows a firm’s analysts and traders to
What Is a Socially Responsible Investment (SRI)? Socially responsible investing (SRI), also known as social investment, is an investment that is considered socially responsible due to the nature of the business the company conducts. A common theme for socially responsible investments is socially conscious investing. Socially responsible investments can be made into individual companies with
What Is the Social Security Administration (SSA)? The Social Security Administration (SSA) is a U.S. government agency that administers social programs covering disability, retirement, and survivors’ benefits, among other services. It is also responsible for issuing Social Security numbers and managing the program’s finances and trust fund. Key Takeaways The Social Security Administration (SSA) oversees
What Is a Social Security Number (SSN)? The term Social Security number (SSN) refers to a numerical identifier assigned to U.S. citizens and other residents to track income and determine benefits. The SSN was created in 1936 as part of The New Deal to provide for retirement and disability benefits. The original intention of the
What is Speculation? In the world of finance, speculation, or speculative trading, refers to the act of conducting a financial transaction that has substantial risk of losing value but also holds the expectation of a significant gain or other major value. With speculation, the risk of loss is more than offset by the possibility of
What Is the Speculation Index? The Speculation Index is computed as the ratio of the trading volume on the NYSE American (formerly the American Stock Exchange or AMEX) to that of the New York Stock Exchange (NYSE). A high level in the index may signal increased speculation among traders since the NYSE American tends to
What Is a Speculative Bubble? A speculative bubble is a spike in asset values within a particular industry, commodity, or asset class to unsubstantiated levels, fueled by irrational speculative activity that is not supported by the fundamentals. Key Takeaways A speculative bubble is a sharp, steep rise in prices that is fueled by market sentiment
What is a Speculator A speculator utilizes strategies and typically a shorter time frame in an attempt to outperform traditional longer-term investors. Speculators take on risk, especially with respect to anticipating future price movements, in the hope of making gains that are large enough to offset the risk. Speculators that take on excessive risk typically don’t last
