Finance.QandAs.com

What is a Postdated Check?

Tue, 30 Jun 2009 02:32:58 +0100

Answer: A postdated check is a check which has a date in the future written on it. Postdated checks may be written when the author does not currently have the funds in his or her account but anticipates being able to pay on a specific date in the near future.

What is a Stale Dated Check?

Tue, 30 Jun 2009 02:30:44 +0100

Answer: A stale-dated check is any check which is held for six months or more from the date it was written. The Uniform Commercial Code does not mandate that banks honor stale-dated checks. Instead, they can simply be returned to the issuing bank.

What Is a Stock Index Future?

Wed, 24 Jun 2009 20:11:38 +0100

Answer: A stock index is group of stocks whose value is a standard (or benchmark) for the general movement of a particular type of stock. A stock index future is a futures contract where the basic commodity is a stock index. Each contract is to purchase or sell a fixed value of the index. Because stock indexes can’t be traded directly, futures based on the stock indexes are the chief method of trading stock indexes. Trading in stock index futures was introduced by the Kansas City Board of Trade.

What is Bond Insurance?

Tue, 23 Jun 2009 10:11:57 +0100

Answer: Bond insurance is insurance underwritten by a private insurance company that guarantees that the interest and principal payments on a bond will be made when due if an issuer of a bond defaults. Because bonds have certain financial risks associated with them many investors choose to purchase bond insurance in order to protect their investments against loss.

What is a Bond Rating?

Mon, 22 Jun 2009 16:58:54 +0100

Answer: A bond is a type of loan in which an investor agrees to loan money to a company in exchange for a predetermined interest rate. A bond rating measures the quality and safety of a bond.