Category Archives: U-Z

Straddles

A straddle is an investment strategy that involves the purchase or sale of an option allowing the investor to profit regardless of the direction of movement of the underlying asset, usually a stock.

Strike Price

Strike Price is the price at which an option can be exercised to buy or sell the underlying stockĀ  or futures contract.

Uncovered Call

A short call option position where the writer does not own the specified number of shares specified by the option nor has deposited cash equal to the exercise value of the call.

Unemployment

“Unemployment” is a major economic indicator measuring how much of the working population is currently looking for a job. The unemployment rate is the most “tangible” economic indicator – if GDP is going up or down, it is harder for people to notice in their day-to-day lives. When the unemployment rate goes up, it usually Read More…

Unsystematic Risk

Unsystematic Risk is also called diversifiable risk, residual risk, or company-specific risk. It isĀ the risk that is unique to a company such as a strike, the outcome of unfavorable litigation, or a catastrophe that affects its production. This risk can be mitigated away by diversification.

Variance

Definition When you are looking at a sequence of related numbers (for example, the price of a single stock over time, the height of all students in a classroom, or how many breakfasts you will get out of a box of a particular cereal), the “variance” is how far away the numbers get from the Read More…

Volume

Volume is the quantity of shares/contracts of a security that is traded within a specific time period.

Volume Weighted Average

In finance, Volume-Weighted Average Price (VWAP) is a ratio of the profit traded to complete volume traded over a distinct time horizon – normally one day. It’s a portion of the average price a stock traded at over the trading horizon.

Wall Street

Definition: “Wall Street” is a street in New York City, near the southern end of Manhattan Island. It is the home of the New York Stock Exchange, and the biggest center of stock trading and finance in the world. History Before New York was New York, it was a Dutch colony called New Amsterdam, which Read More…

Wealth

Definition of Wealth “Wealth” means having an abundance of something desirable. This can be tangible, like money and property, or intangible. Intangible Wealth Just because something does not have a monetary value does not mean it is worthless. Having strong connections with friends and family is often considered a major component of wealth – since Read More…