What Is the Spot Delivery Month? In the commodities futures markets, the spot delivery month is the earliest possible month in which the commodity underlying the futures contract will be deliverable. It is also known as the nearby month or front month. The opposite of the spot delivery month is the back month, which refers
What Is a Special Purpose Acquisition Company (SPAC)? A special purpose acquisition company (SPAC) is a company without commercial operations and is formed strictly to raise capital through an initial public offering (IPO) for the purpose of acquiring or merging with an existing company. Also known as blank check companies, SPACs have existed for decades, but
What Is SPAN Margin? SPAN margin is calculated by standardized portfolio analysis of risk (SPAN), a leading system that has been adopted by many options and futures exchanges around the world. SPAN is based on a sophisticated set of algorithms that determine margin requirements according to a global (total portfolio) assessment of the one-day risk for a trader’s
What Is the S&P Insurer Financial Strength Rating? The term S&P Insurer Financial Strength Rating refers to a system a service offered by Standard & Poor’s that rates an insurance company’s fiscal soundness and, therefore, its ability to pay claims made by its policyholders. This rating can be used as a guide by a number of
What Are S&P Core Earnings? S&P Core Earnings are used to calculate a company’s after-tax profits that come from its core business operations. Unlike the number reported for net income, they disregard one-time revenues or costs that are not part of the company’s main business activities. As the name suggests, S&P Core Earnings were created
What Is a Special Situation? A special situation is an unusual event that compels investors to buy a stock or other asset in the belief that its price will rise. The special situation by definition has little to do with the underlying fundamentals of the stock or any other rationale that investors ordinarily use to
What Is a Special Administrative Region (SAR)? A Special Administrative Regions (SAR) is an area that falls under the general auspices of one country but which has maintained a separate political and economic system. The term is most often associated with Chinese autonomous regions. Two important SARs are Hong Kong and Macau (also spelled Macao), a
What is Special Assessment Bond? Special assessment bonds are general obligation bonds, commonly issued to fund development projects, where the interest owed is paid by taxes levied solely on the beneficiaries of that project. Key Takeaways Special assessment bonds are general obligation bonds, commonly issued to fund development projects, where the interest owed is paid
What Is a Special Assessment Tax? A special assessment tax is a surtax levied on property owners to pay for specific local infrastructure projects such as the construction or maintenance of roads or sewer lines. The tax is charged only to the owners of property in the neighborhood that will benefit from the project. That
What Is a Special Dividend? A special dividend is a non-recurring distribution of company assets, usually in the form of cash, to shareholders. A special dividend is usually larger compared to normal dividends paid out by the company and is often tied to a specific event like an asset sale, corporate restructuring, spinoff, or other
