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1. Q: what is the "unbundling"?

   Category: glossary , Asked by: U. Goodman from United States

   A: an "unbundling " is The process of taking over a large company with several different lines of business, and then, while retaining the core business, selling off the subsidiaries to help fund the takeover. In other words, unbundling occurs when a company purchases another for its most valuable divisions (its crown jewels) with little desire for the other aspects of the business.

2. Q: what is a "check representment"?

   Category: glossary , Asked by: Q. G. From United States

   A: A method whereby checks from accounts with insufficient funds are repeatedly deposited until funds are available. While the process of check representment is complicated, simply put, the bad check is held and the customer's account is tracked until the necessary funds to cover the check are deposited. Once deposited, the amount that the check was drawn for is removed. This is good for both consumers and retailers. It protects consumers from being charged an NSF fee should there be a delay in a necessary deposit to cover a written check. And, it protects retailers by allowing them to collect upon bad checks from customers that have already received merchandise.

3. Q: do you know what "derivatives transaction execution facility - dTEF" is?

   Category: glossary , Asked by: C. Y. From United Kingdom

   A: the "derivatives transaction execution facility - dTEF " is A market that supports the transaction of derivatives on which the underlying commodities are limited to excluded commodities or assets with an inexhaustible, deliverable supply. A derivatives transaction execution facility allows for the transaction of commodities with no cash market; however, all products listed on the exchange must not be susceptible to manipulation. DTEFs must be registered with the Commodity Futures Trading Commission, which grants them fewer regulatory requirements than other contract markets. Derivatives transaction execution facilities are not open to retail investors. To trade on this exchange, an investor must belong to an eligible commercial entity, be an eligible contract participant or transact through a futures commission merchant. DTEFs provide a venue for the trading of excluded commodities, such as interest or exchange rates and other derivatives.

4. Q: please tell me what "diversification" is

   Category: glossary , Asked by: Q. Bates from Watford, United Kingdom

   A: A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique contends that a portfolio of different kinds of investments will, on average, yield higher returns and pose a lower risk than any individual investment found within the portfolio. Diversification strives to smooth out unsystematic risk events in a portfolio so that the positive performance of some investments will neutralize the negative performance of others. Therefore, the benefits of diversification will hold only if the securities in the portfolio are not perfectly correlated. Studies and mathematical models have shown that maintaining a well-diversified portfolio of 25 to 30 stocks will yield the most cost-effective level of risk reduction. Investing in more securities will still yield further diversification benefits, albeit at a drastically smaller rate. Further diversification benefits can be gained by investing in foreign securities because they tend be less closely correlated with domestic investments. For example, an economic downturn in the U.S. Economy may not affect Japan's economy in the same way; therefore, having Japanese investments would allow an investor to have a small cushion of protection against losses due to an American economic downturn. Most non-institutional investors have a limited investment budget, and may find it difficult to create an adequately diversified portfolio. This fact alone can explain why mutual funds have been increasing in popularity. Buying shares in a mutual fund can provide investors with an inexpensive source of diversification.

5. Q: do you know what the "will" is?

   Category: glossary , Asked by: Adrianna C. From Switzerland

   A: A legally enforceable declaration of how a person wishes his or her property to be distributed after death. In a will, a person can also recommend a guardian for his or her children. Also known as a "will and testament". Making a will is a very important component of estate planning. In it you declare who gets your belongings and assets when you die. If you do not have a will, the distribution of your property is left up to the government, and may even end up becoming state property. A will helps ensure that your wishes are carried out, and it can make things simpler and easier for your heirs.

6. Q: please define "income risk"

   Category: glossary , Asked by: I. W. From Canada

   A: The risk that the income stream paid by a fund will decrease in response to a drop in interest rates. This risk is most prevalent in money market and other short-term income fund strategies, rather than longer term strategies that lock in interest rates. This is an extension of the interest rate risk on an individual bond. The following example demonstrates the income risk in a short-term, fixed-income fund. If interest rates are 5%, the money market fund will pay out 4.75%. However, if interest rates suddenly drop to 2%, the fund's payout will have to drop to around 1.75% because it will be reinvesting its funds at the new rate.

7. Q: what is a "spike"?

   Category: glossary , Asked by: L. Fischer from Canada

   A: A large, rapid and short-lived rise or fall in the price of a security.

8. Q: How do I know which certificates are reliable?

   Category: technical , Asked by: Mara D. From Tallahassee, United States

   A: The best way is to look for an online fx platform that's licensed by recognized organizations, such as cbot, cme or nymex. Whenever it says a platform is regulated and certificated by cbot, cme or nymex, be certain that it is among the more protected sites you can find. One of our most recommended online fx platforms as an example is "FX club".

9. Q: Do you know of any online fx platform that has low commission charges that you can suggest for me

   Category: money , Asked by: T. J. From Santa Rosa, United States

   A: Definitely "GCI". No commissions are taken by "GCI", the platform graphics are the best enhanced, the minimum deposit starts from $500, and the customer service is superb.

10. Q: please define an "unrealized gain"

    Category: glossary , Asked by: S. C. From Bern, Switzerland

    A: the "unrealized gain " is A profit that results from holding on to an asset rather than cashing it in and using the funds. Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain.