What is an Offset? An offset involves assuming an opposite position in relation to an original opening position in the securities markets. For example, if you are long 100 shares of XYZ, selling 100 shares of XYZ would be the offsetting position. An offsetting position can also be generated through hedging instruments, such as futures
What Is an Offset Mortgage? An offset mortgage is a type of home loan that involves blending a traditional mortgage with one or more deposit accounts held by the same financial institution. The savings balance maintained in the deposit account may then be used to offset the mortgage balance, lowering interest payments due. Offset mortgages
What Is an Offshore Banking Unit (OBU)? An offshore banking unit (OBU) is a bank shell branch, located in another international financial center. For instance, a London-based bank with a branch located in Delhi. Offshore banking units make loans in the Eurocurrency market when they accept deposits from foreign banks and other OBUs. Eurocurrency simply
What Is the New York Mercantile Exchange (NYMEX)? The New York Mercantile Exchange (NYMEX) is the world’s largest physical commodity futures exchange and is today part of the Chicago Mercantile Exchange Group (CME Group), which is the world’s leading and most diverse derivatives marketplace. CME Group consists of four exchanges: Chicago Mercantile Exchange (CME), Chicago Board
What Is the New York Stock Exchange (NYSE)? The New York Stock Exchange (NYSE) is a stock exchange located in New York City that is the largest equities-based exchange in the world, based on the total market capitalization of its listed securities. Formerly run as a private organization, the NYSE became a public entity on
What Is NYSE Arca? NYSE Arca is an electronic securities exchange in the U.S. on which exchange-traded products (ETPs) and equities are listed. The exchange specializes in ETP listings, which include exchange-traded funds (ETFs), exchange-traded notes (ETNs), and exchange-traded vehicles (ETVs). In addition to placing typical orders, NYSE Arca allows investors and traders to participate in opening
What Is the NYSE Composite Index? The NYSE Composite Index measures the performance of all common stocks listed on the New York Stock Exchange, including American Depositary Receipts issued by foreign companies, Real Estate Investment Trusts, and tracking stocks. The weights of the index constituents are calculated on the basis of their free-float market capitalization.
What Is the New Zealand Stock Exchange (NZX)? The New Zealand Stock Exchange (NZX)—also known as New Zealand’s Exchange—is the national stock exchange for New Zealand. The New Zealand Stock Exchange (NZX), based in Wellington, consists of the NZX Main Board, the NZX Debt Market, the NZX Dairy Derivatives, the NZX Equity Derivatives, and the
What is a Non-Open Market? Non-open market describes an agreement to purchase or sell shares made directly with the company. Non-open market transactions do not take place on a market exchange like most purchase and sale transactions. These are private transactions and can include insider buying. While these transactions occur outside of the traditional market
What Are Ordinary and Necessary Expenses (O & NE)? Ordinary and necessary expenses are expenses incurred by individuals as the cost of owning a business or carrying on a trade. “Ordinary and necessary” expenses are categorized as such for income tax purposes, and these expenses are generally considered tax deductible in the year they are incurred. These
