What is a call and put?

You hear these two words in nearly every investing class – “call option” and “put option”. So what do these two words mean exactly? Firstly, … Read More

What is a capped call?

A capped call (or capped option) is an option that automatically sells a stock if the price goes beyond or below some predetermined price. A … Read More

What is a callable bond?

Let’s break this apart. “Callable bond” is made up of two words – “callable” and “bond”. A “bond” is just an IOU. It’s just an … Read More

What is a hedge?

A hedge is an investment to offset the risk (in an investment) of market volatility, a bad trade, or a period of economic downturn. A … Read More