What Is a Close Position? Closing a position refers to executing a security transaction that is the exact opposite of an open position, thereby nullifying it and eliminating the initial exposure. Closing a long position in a security would entail selling it, while closing a short position in a security would involve buying it back.
What Is Closet Indexing? Closet indexing is a strategy used to describe funds that claim to actively purchase investments but wind up with a portfolio not much different from the benchmark. By doing so, portfolio managers achieve returns similar to an underlying benchmark, like the S&P 500, without exactly replicating the index. The motivation for closet indexing
What Is the Closing Bell? The closing bell is a bell that rings to signify the end of a trading session at a stock exchange. The time for trading for higher earnings has passed. Not all exchanges use this traditional system, but the New York Stock Exchange (NYSE) does. The closing bell occurs at 4:00 p.m. EST
What Is a Closing Entry? A closing entry is a journal entry made at the end of accounting periods that involves shifting data from temporary accounts on the income statement to permanent accounts on the balance sheet. Temporary accounts include revenue, expenses, and dividends, and these accounts must be closed at the end of the accounting year.
What Is a Closing Quote? A closing quote is a security’s final regular-hours trading price for the day. Because of globally interconnected markets, extended-hours trading sessions, and the forces of supply and demand, the previous day’s closing quote will not necessarily be the next day’s opening quote. The first trade of the next day occurs
What Is a Closing Statement? A closing statement is a document that records the details of a financial transaction. A homebuyer who finances the purchase will receive a closing statement from the bank, while the home seller will receive one from the real estate agent who handled the sale. All loans are accompanied by closing
What Is Cloud Computing? Cloud computing is the delivery of different services through the Internet. These resources include tools and applications like data storage, servers, databases, networking, and software. Rather than keeping files on a proprietary hard drive or local storage device, cloud-based storage makes it possible to save them to a remote database. As long
What Is Cloud Mining? Cloud mining is a mechanism to mine a cryptocurrency, such as bitcoin, using rented cloud computing power and without having to install and directly run the hardware and related software. Cloud mining firms allow people to open an account and remotely participate in the process of cryptocurrency mining for a basic cost
What Is Cloud Storage? Cloud storage is a way for businesses and consumers to save data securely online so that it can be accessed anytime from any location and easily shared with those who are granted permission. Cloud storage also offers a way to back up data to facilitate recovery off-site. Today, individuals have access
What Is a Club Deal? A club deal is a private equity buyout or the assumption of a controlling interest in a company that involves several different private equity firms. This group of firms pools its assets together and makes the acquisition collectively. The practice has historically allowed private equity to purchase much more expensive
