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Financial terms in "Insurance"

1. risk shifting

2. difference-in-limits (DIL) clause

3. Developed to Net Premiums Earned

4. free of particular average (FPA)

5. activity standards

6. comprehensive coverage

7. self-insurance pool

8. financial institution bond

9. system safety approach

10. exposure rating

11. statement blank

12. expiration file

13. vanishing premium

14. capital bonus

15. homeowners policy special form 3 (HO 3)

16. runoff

17. assure

18. risk financing

19. Reserve

20. Net Leverage

21. Approved or Not Disapproved for Surplus Lines

22. expected mortality

23. Standard Industrial Classification (SIC)

24. Basel Committee on Banking Supervision

25. fiduciary liability

26. insurance risk management

27. General Account

28. Acceleration Clause

29. defamation

30. development factor

31. grievance procedure

32. mean reserve

33. convergence

34. additional premium

35. Commutative Contract

36. Non-Admitted Assets

37. index bureau

38. free of capture and seizure (FC&S) warranty

39. Insurance Services Office Inc. (ISO)

40. Long-term care insurance

41. bailee's customers insurance

42. morbidity rate

43. manual premium

44. mortgage impairment insurance

45. renewal policy

46. exclusion

47. claims-made reinsurance

48. solicitor

49. securities valuation reserve

50. staff model health maintenance organization

51. optimization

52. special employer

53. jurisdiction

54. election

55. stat card

56. Own Occupation

57. fleet of companies

58. bare walls coverage

59. garagekeepers extra legal liability

60. Qualifying Event

61. commercial property coverage forms (ISO)

62. highly protected risk (HPR) property

63. intrafamily immunity

64. captain of the ship doctrine

65. vertical exhaustion rule

66. homeowners policy unit owners form 6 (HO 6)

67. risk securitization

68. admitted carrier

69. predominant cause

70. state guaranty fund

71. AMERCO v. Commissioner

72. job safety analysis (JSA)

73. insurer-sponsored agency captive

74. premium, advance

75. A.M. Best rating

76. coinsurance hammer clause

77. open end investment company

78. financial guarantee insurance

79. reputational risk

80. burden of proof

81. care, custody, or control (CCC)

82. Preliminary Term

83. Per Capita Beneficiary Designation

84. reformation (of an insurance policy)

85. variable universal life

86. green building

87. Gun Liability

88. Office of Motor Carrier Standards (OMCS)

89. long-term insurance

90. conflict of laws

91. statutory law

92. release

93. Section 501(c) of the U.S. Internal Revenue Code

94. D ratio

95. Flexible Premium

96. captive management company

97. tax opinion insurance

98. buyout settlement clause

99. third-party lien

100. recurrent disability

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Featured term of the day

Definition / Meaning of

Sell Short

Categories: Strategies, Investing and Trading,

selling short is a trading strategy that's designed to take advantage of an anticipated drop in a stock's market price.To sell short, you borrow shares through your broker, sell them, and use the money you receive from the sale as collateral on the loan until the stock price drops. If it does, you then buy back the shares at a lower price using the collateral, and return the borrowed shares to your broker plus interest and commission. If you realize a profit, it's yours to keep. Suppose, for example, you sell short 100 shares of stock priced at $10 a share. When the price drops to $7.50, you buy 100 shares, return them back to your broker, and keep the $2.50-per-share profit minus commission. The risk is that if the share price rises instead of falls, you may have to buy back the shares at a higher price and suffer the loss.During the period of the short sale, the lender of the stock is no longer the registered owner because the stock was sold to the purchaser. If any dividends are paid during that period, or any other corporate actions occur, the short seller must make the lender whole by paying the amount that's due. However, that income is taxed at the lender's regular rate, not the lower rate that applies to qualifying dividend income.

Most popular terms

1. Distribution
2. Contract Certainty
3. Personal Profit Exclusion
4. Earnings Before Interest, Taxes, Depreciation And Amortization
5. Homeowner's Insurance
6. Internalization
7. Terms Of Reference
8. Price-to-earnings Ratio (P/E)
9. Long-term Care Insurance
10. Flexible Spending Account

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