What Is a Bear Put Spread? A bear put spread is a type of options strategy where an investor or trader expects a moderate-to-large decline in the price of a security or asset and wants to reduce the cost of holding the option trade. A bear put spread is achieved by purchasing put options while
What Is a Bear Steepener? A bear steepener is the widening of the yield curve caused by long-term interest rates increasing at a faster rate than short-term rates. A bear steepener is usually suggestive of rising inflationary expectations–or a widespread rise in prices throughout the economy. The rise in inflation can lead to the Federal
What Is a Bear Straddle? A bear straddle is an options strategy that involves buying (or selling) both a put and a call on the same underlying security with an identical expiration date and strike price, but where the strike price is above the security’s current market price. This is a type of “crooked” or
What Is a Bear Tack? Bear tack is a slang term used by stock investors and analysts to describe a negative movement in a stock, sector, or market that may foretell the beginning of a downward trend. Tacking is a term borrowed from sailing that refers to a maneuver in which a sailboat caught in
What Is a Bear Trap? A bear trap is a technical pattern that occurs when the price action of a stock, index or another financial instrument incorrectly signals a reversal from an uptrend to a downtrend. In other words, prices may move higher in a broad-based incline, only to encounter significant fundamental resistance or change.
What Is a Bed and Breakfast Deal? In investing, a bed and breakfast deal is a practice in the United Kingdom whereby the holder of a security sells it at the end of the day on the last day of the financial year and buys it back the next morning. The purpose of a bed
What Is a Basic Extended Reporting Period (BERP)? A basic extended reporting period (BERP) is a reporting period extension provided to claims-made liability policies. Basic extended reporting period (BERP) applies to claims made after the retroactive date, and after the policy has been canceled, non-renewed, or changed to a different type of liability policy. Key
What Is Universal Basic Income (UBI)? Universal basic income (UBI) is a government program in which every adult citizen receives a set amount of money regularly. The goals of a basic income system are to alleviate poverty and replace other need-based social programs that potentially require greater bureaucratic involvement. The idea of universal basic income
What Is the Basic Premium Factor? The basic premium factor is the acquisition expenses, underwriting expenses, profit, and loss conversion factor adjusted for the insurance charge for a policy. The basic premium factor is used in the calculation of retrospective premiums. It does not take into account taxes or claims adjustment expenses, which are instead
What Are Basic Reparations Benefits? In the insurance industry, basic reparations benefits are a type of automobile insurance that provides assistance with medical expenses, lost income, and essential services following a car accident. Importantly, basic reparations benefits are a type of “no-fault” insurance option, meaning that the benefits are paid regardless of whether the policyholder
