What Is Spring Loading? Spring loading is an option-granting practice in which options are granted to employees at a time that precedes a positive news event. This is a controversial practice as it allows employees to potentially book instant profits after the news event. It is not illegal but it does bear a resemblance to
What is Sprinkling Provision Sprinkling provision is a provision within a life insurance agreement that allows the policy’s trustee to spread the death benefit around to beneficiaries at his or her discretion. The sprinkling provision gives beneficiaries in greater need of funds, the opportunity to receive a greater portion of the payout than if the
What Is the S&P/TSX Composite Index? The S&P/TSX Composite Index is a capitalization-weighted equity index that tracks the performance of the largest companies listed on Canada’s primary stock exchange, the Toronto Stock Exchange (TSX). It is the equivalent of the S&P 500 index in the United States, and as such is closely monitored by Canadian
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
