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Saturday, April 24, 2010

Resource depletion

Is an economic term referring to the exhaustion of raw materials within a region. Resources are commonly divided between renewable resources and non-renewable resources. Use of either of these forms of resources beyond their rate of replacement is considered to be resource depletion.

Resource depletion is most commonly used in reference to the farming, fishing, mining, and fossil fuels.

Climate change

Is a change in the statistical distribution of weather over periods of time that range from decades to millions of years. It can be a change in the average weather or a change in the distribution of weather events around an average (for example, greater or fewer extreme weather events). Climate change may be limited to a specific region, or may occur across the whole Earth.

In recent usage, especially in the context of environmental policy, climate change usually refers to changes in modern climate. It may be qualified as anthropogenic climate change, more generally known as "global warming" or "anthropogenic global warming" (AGW).

For information on temperature measurements over various periods, and the data sources available, see temperature record. For attribution of climate change over the past century, see attribution of recent climate change.

Government debt

Also known as public debt or national debt - is money (or credit) owed by any level of government; either central government, federal government, municipal government or local government. By contrast, annual government deficit refers to the difference between government receipts and spending in a single year.

A corporate bond

Is a bond issued by a corporation. It is a bond that a corporation issues to raise money in order to expand its business. The term is usually applied to longer-term debt instruments, generally with a maturity date falling at least a year after their issue date. (The term "commercial paper" is sometimes used for instruments with a shorter maturity.)

Consumer debt

Is consumer credit which is outstanding. In macroeconomic terms, it is debt which is used to fund consumption rather than investment.

Tax policy

Is the government's approach to taxation, both from the practical and normative side of the question.

Wednesday, April 21, 2010

The Index Options

When you invest in only one or two stocks, you are taking the chance that they might not go up when the market does. Most people cannot afford to buy variety of stocks wide enough to fluctuate with the entire market. But now there is a relatively new investment. They are designed to let investors profit from the rise or fall of the total market.

Index option s are like stocks options. they give you the right to buy or sell securities at a predetermined price anytime before the option expires. an option to buy a call , the right to sell is a put.

When you buy such an option from a broker, you merely place a bet that some broad index of stocks will rise or fall. usually within the next 90 days. an index option usually cost only a few hundred dollars, but you could reap the same profits as if you had invested.

That is because a small move up or down in the index can cause a much bigger change in the value of the options trading. and the chills. Because if you wager wrongly you lose everything you had invested.