What is an Earned Premium (Insurance)? Earned premium refers to a portion of the amount paid to the insurer as a premium that the insurer has earned at a given point in time. Restated, an earned premium is the amount of money or part of insurance premium that was paid to insurer as part of insurance policy. As the period of coverage passes, a portio...

What is a Publicly Traded Partnership? In a business setting, a firm can be owned by a single individual, or a group of persons. A firm which is owned by a single person or partnership can either be traded on a private market or on a public market. A publicly traded partnership is any business institution, firm, or a company that is owned by two or ...

What is a Backspread Ratio? A ratio spread is a strategy used by traders to understand the ratio of an underlying trading plan or two-legged trading plan. This strategy is commonly used in options, it entails the purchase of a number of stocks and selling more of the same options at a different strike price but at the same expiration date. A spread ...

What are Golden Handcuffs? Perks and financial incentives offered to employees to stay with a firm are referred to as Golden Handcuffs. Golden Handcuffs increase employee retention rates by locking in the duration of employee stay with a firm. Golden Handcuffs are common in industries with high attrition rates and frequent talent poaching. Talented ...

What is Brand Image? Brand is how we distinguish our business from others. Often our brand is our most valuable asset as a company. Brand image is an overall perception of the brand and the characteristics of its products. In other words, what do people think of when they think of us as a company or our products. A brand image can be positive or it ...

What is a Credit Spread? In finance, a credit spread refers to the difference in the yields (returns) of two investment or financial instruments with the same maturity but different credit quality. Credit or yield spread often occurs as a result of the difference in credit qualities which indicates that one instrument has a risk premium over the oth...

What is a Financial Risk Manager? Financial risk manager, also known as FRM, is a professional designation that the Global Association of Risk Professionals (GARP) issue. FRM accreditation from GARP is a financial risk professionals premier certification with global recognition. With recognition in more than 90 countries, the FRM exam measures the a...

How Can I Start a Hedge Fund? Hedge funds have been extremely successful investment funds in the past two decades. These funds handle alternative assets not generally held by traditional funds, such as mutual or pension funds. Managing a fund requires a strong knowledge of asset valuation and the ability to recognize potential for appreciation. Perh...

What is a Bowie Bond? A bowie bond is an example of a celebrity bond and was introduced by David Pullman in 1997, the investment banker of David Bowie. A celebrity bond is usually music-based. These bonds were issued in 1997 as asset-based security to cover the current and future revenue from 25 albums of David Bowie for a period of 10 years. How Do...

What is a Call Auction? A call either refers to a call auction or a call option.A call option is an agreement or a contract that gives a person the right but not an obligation to purchase a portion of an underlying asset at a specified time and price. In this trading method, a timeframe is set in which the underlying assets must be purchased at the ...