Line of Best Fit

What is the line of best fit? The line of best fit refers to a line through a scatter plot of data points that best expresses the relationship between those points. Statisticians generally use the method of least squares (sometimes known as ordinary least squares or OLS) to arrive at the geometric equation of the…

How Nasdaq Makes Money: Capital Markets, Services, Fees

Nasdaq Inc. (SO) is a global technology company that provides data, analytics, software and services to the capital markets industry. The company is best known as the operator of the Nasdaq Stock Market, the largest single liquidity venue for trading U.S.-listed cash stocks. At the end of 2020, a total of 3,392 companies were trading…

Uniform Premarital and Marital Agreements Act

What is the Uniform Prenuptial and Marital Agreements Act? Passed by 26 states, Uniform Prenuptial and Matrimonial Agreements Act—drafted by the National Conference of Commissioners on Uniform State Laws in 1983—helped to make contracts signed by two parties who were getting married consistent. The law allows the parties to a prenuptial agreement to choose which…

What Does Rollover Mean in the Context of the Forex Market?

In the currencies market (FX), rollover is the process of extending the settlement date of one free post. In most currency exchanges, a trader is required to take delivery currency two days after the transaction date. However, by rolling over the position – simultaneously closing the existing position at the daily closing rate and re-entering…

Treasury DRIP Definition

What is a Treasury DRIP? A Treasury Drip – short for “Treasury Dividend Reinvestment Plan” – is a plan through which investors automatically reinvest their dividend payments in new shares purchased directly from the company treasury shares. Often the treasury DRIP will entitle investors to a small discount on the shares purchased, usually between 2…