What Is Buy the Dips? “Buy the dips” means purchasing an asset after it has dropped in price. The belief here is that the new lower price represents a bargain as the “dip” is only a short-term blip and the asset, with time, is likely to bounce back and increase in value. Key Takeaways Buying
What Is Buy to Close? “Buy to close” refers to terminology that traders, primarily option traders, use to exit an existing short position. In market parlance, it is understood to mean that the trader wants to close out an existing option trade. Technically speaking, it means that the trader wants to buy an asset to
What Is Buy to Cover? Buy to cover refers to a buy order made on a stock or other listed security to close out an existing short position. A short sale involves selling shares of a company that an investor does not own, as the shares are borrowed from a broker but need to be repaid at some point. Key
What Is Buy to Open? “Buy to open” is a term used by brokerages to represent the establishment of a new (opening) long call or put position in options. If a new options investor wants to buy a call or put, that investor should buy to open. A buy-to-open order indicates to market participants that
What Is a Series E Bond? Series E Bonds were initially issued to finance the United States’ involvement in World War II. They were sold at a discount to face value and paid full face value at maturity. Series E Bonds remained available after the war as U.S. Savings Bonds and were replaced by Series
What Is a Bad Bank? A bad bank is a bank set up to buy the bad loans and other illiquid holdings of another financial institution. The entity holding significant nonperforming assets will sell these holdings to the bad bank at market price. By transferring such assets to the bad bank, the original institution may
What Is a Bargain Sale to a Charitable Organization? A bargain sale to a charitable organization is the sale of a good or service to a charitable organization for less than the fair market value of the good or service received. Donors often who wish to make a charitable donation to an organization in a
What Is a Chartered Accountant (CA)? A chartered accountant (CA) is an international accounting designation granted to accounting professionals in many countries around the world, aside from the United States. In the United States, the equivalent to the CA designation is a certified public accountant (CPA). Key Takeaways The designation of chartered accountant is granted
What Is ‘Cable’? “Cable” is a slang term for the exchange rate between the U.S. dollar (USD) and the British pound sterling (GBP). The term is used among forex traders. It can also refer to the British pound sterling. The word “cable” refers to the early transatlantic telegraph cables laid between London and New York
What Is Business Recovery Risk? Business recovery risk refers to a company’s exposure to loss as a result of damage to its ability to conduct day-to-day operations. Loss of ability to conduct day-to-day operations may result from supply chain interruptions, damage to physical locations, or loss of access to virtual systems, among other losses. Key
