What Are Accident and Health Benefits? Accident and Health Benefits are a type of health insurance policy that is purchased by companies on behalf of their employees. They are intended to supplement the standard health insurance policy offered to employees, by providing protection for accidents that might occur within the workplace. Key Takeaways Accident and
What Is Accommodation Trading? Accommodation trading is a type of trading in which one trader accommodates another by entering into a non-competitive purchase or sale order. The instance of accommodation trades often happens when two traders are participating in illegal trading. Certain types of accommodation trades can also be known as wash sales. Key Takeaways Accommodation trading
What Is Accord and Satisfaction? An accord and satisfaction is a legal contract whereby two parties agree to discharge a tort claim, contract, or other liability for an amount based on terms that differ from the original amount of the contract or claim. Accord and satisfaction is also used to settle legal claims prior to
What Is an Accommodative Monetary Policy? Accommodative monetary policy, also known as loose credit or easy monetary policy, occurs when a central bank (such as the Federal Reserve) attempts to expand the overall money supply to boost the economy when growth is slowing (as measured by GDP). The policy is implemented to allow the money
What Is an Absolute Auction? An absolute auction is a type of auction in which the sale is awarded to the highest bidder. Absolute auctions do not have a reserve price, which sets a minimum required bid for the item to be sold. Key Takeaways Absolute auctions are a popular type of auction, especially for
What Is an Absolute Beneficiary? An absolute beneficiary is a designation of a beneficiary that can not be changed without the written consent of that beneficiary. This term is often used in connection with an insurance policy when a beneficiary is named. The terms of the policy or agreement will specify whether the beneficiary is
What Is Absolute Pollution Exclusion? Absolute pollution exclusion is a commercial liability insurance policy clause that removes coverage of pollution resulting from regular business operations. Absolute pollution exclusions to comprehensive general liability insurance policies became common after 1986 when standard pollution exclusions no longer contained “sudden and accidental” pollution incidents. Understanding Absolute Pollution Exclusion Absolute
What Is the Absolute Rate? The absolute rate, also known as the absolute swap yield, is the total yield earned by both parties to an interest rate swap. It is calculated as the sum of the fixed and variable components of the interest rate swap. For example, if an interest rate swap has a fixed
What Is Absolute Priority? Absolute priority, also known as “liquidation preference,” is a rule governing the order of payment among creditors and shareholders in the event of a corporate liquidation. The absolute priority rule is used in corporate bankruptcies to decide the portion of payment that will be made to each participant. Debts to creditors
What Is the Absolute Return Index? The term absolute return index refers to a stock index designed to measure absolute returns on investments in hedge funds. Hedge funds are considered alternative investments that use pooled funds to earn returns for their investors. The index was created to compare the performance of an individual hedge fund against
