Investopedia asks authors to use primary sources to support their work. These include white papers, government data, original reports, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can read more about the standards we follow in producing accurate and unbiased content in our editorial policy.
What is a standard floor limit? The term “standard floor limit” refers to the size of the transaction above which merchants are required to obtain authorization when processing a transaction. credit card transaction. For example, a trader with a standard floor limit of $100 should allow any trade over $100. Due to the rise of…
What is the consumer price index for all urban consumers (CPI-U)? The Consumer Price Index for All Urban Consumers (CPI-U) measures changes in consumer prices in the United States based on a basket of goods and services. The term urban in the index refers to areas around any city or town with a population of…
What are the mountain range options? The mountain range options are a family of exotic options based on several underlyings securities. Mountain range options were first marketed by French securities firm Societe Generale in 1998. These options combine some of the key features of basket style Where rainbow options– both of which have more than…
What is the Canada Pension Plan (CPP)? The Canada Pension Plan is one of the three tiers of the Canadian government’s retirement income system, which is responsible for providing retirement or disability benefits. The Canada Pension Plan was created in 1965 to provide a basic set of benefits to retirees and disabled contributors. If the…
What is the business tax credit? Business tax credits are an amount that businesses can subtract from taxes owed to a government. Business tax credits are applied against taxes owed, as opposed to a deduction which is used to reduce taxable income. Businesses apply the tax credits when they file their annual tax return. In…
At any given time, the last year in which the tax deduction for private mortgage insurance (PMI)also known as Mortgage Insurance Premium (MIP), was permitted for the 2017 tax year, but only for mortgages taken out or refinanced after January 1, 2007. However, the Supplemental Consolidated Credits Act of 2020 permitted MIP and PMI tax…
What is a look-alike contract? Similar contracts are a cash-settled financial product based on the settlement price of a similar exchange-traded, physically-settled contract future contracts. Similar contracts are negotiated over-the-counter and carry no risk of physical delivery regardless of the terms of the underlying futures contract. Similar futures contracts are regulated by the Commodity Futures…
What is a standstill agreement? A standstill agreement is a contract that contains provisions that govern how a bidder of a company can buy, sell or vote shares of the target company. A standstill agreement can effectively block or halt the process of a Hostile takeover if the parties cannot negotiate a friendly agreement. The…