Covered Option An options contract whereby the contract is backed by the security. A seller of a call option is said to be covered when the underlying security is already held. Custodian A financial institution that holds stock certificates and other assets for individual or corporate clients. The benchmark index for the German stock market. An order to buy or sell which expires unless it has been filled or it is canceled.
All orders are day orders unless otherwise specified.
The interest rate that the Federal Reserve charges member institutions for borrowing. This is generally the lowest rate on the market. The strategy of spreading your assets in different investment classes to reduce the overall risk of the portfolio. Dividend A distribution of a portion of net profits to shareholders. Dividends are declared by the Board of Directors.