What Is a Naked Put? A naked put is an options strategy in which the investor writes, or sells, put options without holding a short position in the underlying security. A naked put strategy is sometimes referred to as an “uncovered put” or a “short put” and the seller of an uncovered put is known as
What Is Naked Shorting Naked shorting is the illegal practice of short selling shares that have not been affirmatively determined to exist. Ordinarily, traders must borrow a stock or determine that it can be borrowed before they sell it short. So naked shorting refers to short pressure on a stock that may be larger than
What Is a Naked Warrant? A naked warrant, also known as a covered warrant, is a derivative that allows the holder to buy or sell a security, such as a bond or a share. Unlike a normal warrant, it is not attached to a newly issued bond or preferred stock. Naked warrants are issued by
What Is a Naked Writer? A naked writer is the seller of an options contract who does not also maintain an offsetting position in the underlying security. In other words, a naked call writer does not have an existing long position, and a naked put writer an existing short position in the underlying security, leaving
What Is Namecoin (NMC)? Namecoin is “a peer-to-peer naming system based on Bitcoin.” It’s a token for a blockchain initially forked from Bitcoin’s blockchain. A fork is a change in a blockchain that makes the new branch noncompatible to the original branch. Namecoin was developed as a blockchain and token for a decentralized domain name
What Is a Named Perils Insurance Policy? A named perils insurance policy is a home insurance (or business) insurance policy that only provides coverage on losses incurred to your property from hazards or events named on the policy. Named peril coverage may be purchased as a less expensive alternative to a comprehensive coverage or broad policies
What Is the Multiplier Effect? The multiplier effect is an economic term, referring to the proportional amount of increase, or decrease, in final income that results from an injection, or withdrawal, of capital. In effect, Multipliers effects measure the impact that a change in economic activity—like investment or spending—will have on the total economic output
What is the Multistage Dividend Discount Model? The multistage dividend discount model is an equity valuation model that builds on the Gordon growth model by applying varying growth rates to the calculation. Under the multistage model, changing growth rates are applied to different time periods. Various versions of the multistage model exist, including the two-stage
What Is the Mumtalakat Holding Company? The Mumtalakat Holding Company is a government-owned investment organization that manages the sovereign wealth fund for the Kingdom of Bahrain. The fund’s deposits come primarily from surplus revenues from the development of oil and gas reserves in Bahrain. The firm’s portfolio, however, is composed of assets unrelated to oil and gas.
What is Municipal Bond Arbitrage? Municipal bond arbitrage refers to the strategy that an investor deploys where they leverage the tax-exempt status of municipal bonds to hedge their portfolio’s duration risk. Key Takeaways Municipal bond arbitrage refers to the strategy that an investor deploys where they leverage the tax-exempt status of municipal bonds to hedge
