financial services

futures contract

A futures contract is a contract between two parties for the purchase of a specified commodity at a predetermined future date and price. The Commodity Futures Trading Commission (CFTC) oversees futures contracts in the United States. Many...

golden parachute

Golden parachute refers to a payment agreement for officers and management if they lose their jobs or face major changes to their jobs due to a sale of their company. Often when a public company faces a hostile takeover, the officers and...

grace period

A period of time during which a debtor is not required to make payments on a debt or will not be charged a fee. For example, most credit cards offer a grace period of 20 to 30 days before interest is charged on purchases; as long as you pay...

guarantee

A guarantee can be defined as a person or entity to whom a guaranty is made. A guarantee is entitled to receive the payment as a creditor to whom a guaranty is made. A guarantee holds the right to receive payment as a creditor first from the...

gun jumping

Gun jumping refers to unlawful activities by a company awaiting regulatory approval for a transaction. The term arises in the context of (1) securities regulation and (2) anti-trust regulation.

(1) Gun jumping in Securities Regulation...

hypothecate

Hypothecate means to pledge something as security for a loan, without the actual delivery of the item pledged. For example, a car may be collateral for a car loan, although possession remains with the borrower.

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income

Income is money or value that an individual or business entity receives in exchange for providing a good or service or through investing capital. The Haig-Simons model of income is commonly used in economics, which considers the following...

incumber

To incumber (commonly spelled encumber) means to effect an encumbrance on real property.

[Last updated in April of 2022 by the Wex Definitions Team]

incumbrance

See: Encumbrance

[Last updated in February of 2022 by the Wex Definitions Team]

index (finance)

Index is defined as a market-sensitive interest rate that determines interest-rate changes on adjustable-rate mortgages and other variable rate loans. Common indices include the six-month London Interbank Offered Rate (LIBOR), the Federal...

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