Caveat is a term that loosely translates from Latin as ‘let them beware’. It is mostly used in real estate in two forms - caveat emptor and caveat venditor which means ‘let the buyer beware’ and ’let the seller beware’ respectively.

 

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Mark-to-management is valuation, assigned to the assets or securities of the company by the management of the said company. It is a practice widely used in the times of financial crisis, when market price-assignments is threatening to the securities as it can wipe millions of dollars if left alone.

 

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Naked position is the position of long or short security that is sheltered from the market risks. Is means that the risk of the profit or failure is much greater than that of the hedged security.

 

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Overwriting is one of the most intricate transactions in the market as it involves selling or buying options which are thought to be overpriced and, as a result the transaction is not believed to be possible to exercise. The practice is used to collect premium securities.

 

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Zakat is a mandatory for all the Muslims practice that involves investing part of their income in an obligation which is further donated in some kind of charity.

 

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Yuppie is a derogative term used to describe a segment of the market, dominated by young urban professionals. The main feature of such a professional are youth, affluence and success in the field. The like to show off and are often the bud of the jokes for older traders.

 

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Haircut is a term that refers to the difference in prices at which a market maker can purchase and sell a security. The name of the term comes from the fact that traders can execute trades on a very thin spread.

 

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Having an absolute interest means to be of full ownership and of full control as well as hold all of the right to an asset. It can be held on real estate. Jewelry, various business or an investment. The main feature of the absolute interest is the fact that no third party can claim the right to the asset and profits it may bring.

 

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