Investopedia Staff

Investopedia Staff

Investopedia believes that individuals can excel at managing their financial affairs. As such, we strive to provide free educational content and tools to empower individual investors, including thousands of original and objective articles and tutorials on a wide variety of financial topics.

  1. Financial Analysis

    Liquidity Cushion

    A liquidity cushion refers to the cash or highly liquid investments that individual or company hold to meet unexpected demands ...
  2. Credit, Loans & Mortgages

    Mortgage Electronic Registration System - MERS

    Developed to track servicing rights on mortgages, the Mortgage Electronic Registration System is used by lenders and borrowers.
  3. Credit, Loans & Mortgages

    Interchange Rate

    A fee called the interchange rate is charged to retailers by banks for the sake of covering credit risk costs.
  4. Trading Instruments

    Quantity-Adjusting Option - Quanto Option

    A quantity-adjusting option is a derivative where the underlying asset is denominated in one currency and the option is settled ...
  5. Mutual Funds

    What Was the First Mutual Fund?

    Many trace the creation of the first mutual fund back to Dutch merchant Adriaan Van Ketwich.
  6. Credit, Loans & Mortgages

    Defective Title

    A defective title is a piece of property or asset that has a publicly-recorded encumbrance, rendering legal transfer to another ...
  7. Bonds / Fixed Income

    Convertible Bond Arbitrage

    A convertible bond arbitrage is an arbitrage strategy that aims to capitalize on mispricing between a convertible bond and ...
  8. Bonds / Fixed Income

    Eurocommercial Paper

    A eurocommercial paper (ECP) is an unsecured, short-term loan issued by a bank or corporation in the international money ...
  9. Income Tax


    A refund is a payment from the state or federal government for an individual's overpaid taxes.
  10. Trading Strategy

    Canceled Order

    A canceled order is a previously submitted order to buy or sell a security that gets canceled before it executes on an exchange.
  11. Credit, Loans & Mortgages

    Adverse Action

    An adverse action is a negative action reported to an individual or business which generally pertains to the denial of credit, ...
  12. Bonds / Fixed Income

    Average Effective Maturity

    For a single bond, the average effective maturity is a measure of maturity that takes into account the possibility that a ...
  13. Credit, Loans & Mortgages

    Third-Party Mortgage Originator

    A third-party mortgage originator is any third-party that works with a lender to originate a mortgage loan.
  14. Trading Instruments

    Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
  15. Investing Strategy


    Covariance is a measure of the directional relationship between the returns of two assets.