What Is the Commodity Research Bureau Index (CRBI)? The Commodity Research Bureau Index (CRBI) acts as a representative indicator of today’s global commodity markets. It measures the aggregated price direction of various commodity sectors. This commodity index comprises a basket of 19 commodities, with 39% allocated to energy contracts, 41% to agriculture, 7% to precious
What Is the Costa Rican Colón (CRC)? The Costa Rican colón (CRC) is the national currency of the Republic of Costa Rica. The currency was first issued in coin and paper form in 1896. One U.S. dollar was equal to about 601 CRC in late September 2020. Visitors to Costa Rica from the U.S. will find that
What Is the Central Registration Depository (CRD)? The Central Registration Depository (CRD) is a database maintained by the Financial Industry Regulatory Authority (FINRA) since 2007 for all firms and individuals involved in the U.S. securities industry. It is used to store and maintain information on registered securities and broker firms, as well as individuals who dispense
What Is a Creation Unit? A creation unit is a block of new shares sold by an exchange-traded fund (ETF) company to a broker-dealer for sale on the open market. Creation unit blocks typically range in size, anywhere from 25,000 to 600,000 shares. Broker-dealers can buy the shares in either a cash purchase or through an
What is Creative Accounting? Creative accounting consists of accounting practices that follow required laws and regulations, but capitalize on loopholes in accounting standards to falsely portray a better financial image of a company. Creative accounting techniques vary and evolve as regulations change to close the loopholes that allow them. Key Takeaways Creative accounting capitalizes on loopholes in
What Is Creative Destruction? Creative destruction is the dismantling of long-standing practices in order to make way for innovation and is seen as a driving force of capitalism. Key Takeaways Creative destruction describes the deliberate dismantling of established processes in order to make way for improved methods of production.Creative destruction is most often used to
What Is Credit Life Insurance? Credit life insurance is a type of life insurance policy designed to pay off a borrower’s outstanding debts if the policyholder dies. It’s typically used to ensure you can paydown a large loan like a mortgage or car loan. The face value of a credit life insurance policy decreases proportionately with the outstanding loan amount
What Is a Covered Bear? A covered bear is a trading strategy in which a short sale is made against a long position, but without closing out the existing long position. This is sometimes known as “shorting against the box”. This results in a neutral position where all gains in a stock are equal to the losses
Covered Bond: An Overview A covered bond is a package of loans that were issued by banks and then sold to a financial institution for resale. The individual loans that make up the package remain on the books of the banks that issued them, serving as a collateral pool and conveying an additional layer of
What Is a Covered Call? The term covered call refers to a financial transaction in which the investor selling call options owns an equivalent amount of the underlying security. To execute this, an investor who holds a long position in an asset then writes (sells) call options on that same asset to generate an income
