Investment Terms

White-collar crime is a nonviolent crime committed for financial gain. According to the FBI, a key agency that investigates these offences.
These crimes are characterized by deceit, concealment, or violation of trust.
The motivation for these crimes is to obtain or avoid losing money, property, or services or to secure a personal or business advantage.
Examples of white-collar crimes include securities fraud, embezzlement, corporate fraud, and money laundering.
Some definitions of white-collar crime consider only offences undertaken by an individual to benefit themselves. But the FBI, for one, defines these crimes as including large-scale fraud perpetrated by many throughout a corporate or government institution.

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Tight monetary policy is a course of action undertaken by a central bank such as the Federal Reserve to slow down overheated economic growth, constrict spending in an economy that is seen to be accelerating too quickly, or to curb inflation when it is rising too fast.
The central bank tightens policy or makes money tight by raising short-term interest rates through policy changes to the discount rate and federal funds rate.
Boosting interest rates increases the cost of borrowing and effectively reduces its attractiveness. Tight monetary policy can also be implemented via selling assets on the central bank's balance sheet to the market through open market operations.
Central banks around the world use monetary policy to regulate specific factors within the economy. Central banks most often use the federal funds rate as a leading tool for regulating market factors.

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A public limited company is a public company in the United Kingdom.
PLC is the equivalent of a U.S. publicly-traded company that carries the Inc. or corporation designation.
The use of the PLC abbreviation after the name of a company is mandatory and communicates to investors and to anyone dealing with the company that it is a publicly-traded corporation.
A PLC designates a company that has offered shares of stock to the general public. The buyers of those shares have limited liability therefore they cannot be held responsible for any business losses in excess of the amount they paid for the shares.
U.K. company law says that a PLC must have the PLC designation after the company name and minimum share capital of £50,000.
As a publicly-traded company in the U.S., PLCs offer various types of shares, such as ordinary and cumulative preference shares.

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Term life insurance, also known as pure life insurance, is a type of life insurance that guarantees payment of a stated death benefit if the covered person dies during a specified term.
Once the term expires, the policyholder can either renew it for another term, convert the policy to permanent coverage, or allow the term life insurance policy to terminate.
These policies have no value other than the guaranteed death benefit and feature no savings component as found in a whole life insurance product.
Term life premiums are based on a person’s age, health, and life expectancy.
Depending on the insurance company, it may be possible to turn term life into whole life insurance.

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A tariff is a tax imposed by one country on the goods and services imported from another country.
Tariffs are used to restrict imports. tariff imposed affects the exporting country indirectly as the domestic consumer might shy away from their product due to the increase in price.
If the domestic consumer still chooses the imported product, then the tariff has essentially raised the cost for the domestic consumer.
Governments may impose tariffs to raise revenue or to protect domestic industries especially nascent ones from foreign competition.
Governments that use tariffs to benefit particular industries often do so to protect companies and jobs.
Tariffs can also be used as an extension of foreign policy as their imposition on a trading partner's main exports may be used to exert economic leverage.

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The term quadruple witching refers to the date when four different types of futures and options expire on the same day.
This happens with four different types of contracts, including stock index futures, stock index options, stock options, and single stock futures.
Quadruple witching dates occur four times a year on the third Friday of March, June, September, and December.
Market activity on these days is typically highest during the last trading hour as traders try to move on these contracts.
Quadruple witching days replaced triple witching days when single stock futures started trading in November 2002.
The terms triple and quadruple witching are often used interchangeably even though there's a disparity in the number of expiring markets.

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A unilateral contract is a contract agreement in which an offeror promises to pay after the occurrence of a specified act. In general, unilateral contracts are most often used when an offeror has an open request in which they are willing to pay for a specified act.
An example of a unilateral contract is an insurance policy contract, which is usually partially unilateral. In a unilateral contract, the offeror is the only party with a contractual obligation.
In a unilateral contract, the offeror promises to pay for specified acts that can be open requests, random, or optional for other parties involved.
Unilateral contracts are considered enforceable by contract law. However, legal issues typically do not arise until the offeree claims to be eligible for remuneration tied to acts or occurrences.

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The velocity of money is a measurement of the rate at which money is exchanged in an economy. It also refers to the rate at which consumers and businesses in an economy collectively spend money.
The velocity of money is usually measured as a ratio of gross domestic product to a country's M1 or M2 money supply.
The velocity of money is important for measuring the rate at which money in circulation is being used for purchasing goods and services. It is used to help economists and investors gauge the health and vitality of an economy.
High money velocity is usually associated with a healthy, expanding economy. Low money velocity is usually associated with recessions and contractions.
Economists use the velocity of money to measure the rate at which money is used for goods and services in an economy.

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A zero-coupon swap is an exchange of cash flows in which the stream of floating interest-rate payments is made periodically.
A zero-coupon swap is a derivative contract entered into by two parties. One party makes floating payments which change according to the future publication of the interest rate index upon which the rate is benchmarked.
The other party makes payments to the other based on an agreed fixed interest rate.
The fixed interest rate is tied to a zero-coupon bond or a bond that pays no interest for the life of the bond but is expected to make one single payment at maturity.

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The London Metal Exchange is a commodities exchange that deals in metals futures and options. It is the largest exchange for options and futures contracts for base metals, which include aluminium, zinc, lead, copper, and nickel.
The exchange also facilitates the trading of precious metals like gold and silver.
The LME is located in London, England, but has been owned by Hong Kong Exchanges and Clearing since 2012.
The prices on the LME are considered the standard global prices for base metals.
The LME also lists futures contracts on its London Metal Exchange Index which is an index that tracks the prices of the metals that trade on the exchange.

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