Definition

A financial derivative that lets pessimists get paid for being right—the option to sell something at a guaranteed price whether the market likes it or not. The insurance policy for people who saw the crash coming.

Example: She bought puts on the stock to hedge her investment portfolio.

Example Usage

She bought puts on the stock to hedge her investment portfolio.

Source: Securities and Options trading terminology

Related Terms

Intermediate

underlie

To form the fundamental basis or foundation of something—the hidden mechanism that explains why things work the way they do.

💰 Finance / Accounting
Intermediate

expend

To spend, consume, or use up resources—usually money or effort—in pursuit of a goal or outcome. In budget speak, it's the moment when 'allocated funds' become 'actually spent money.'

💰 Finance / Accounting
Beginner

Net Income

The bottom line after all expenses, taxes, and interest—the number that determines your bonus.

💰 Finance / Accounting
Advanced

securitization

The financial alchemy of bundling loans or other assets into securities that can be sold to investors, because why hold boring old mortgages when you can slice, dice, and trade them? This process converts illiquid assets into tradable securities, spreading risk around like a game of hot potato—which worked great until 2008 taught us what happens when the music stops. Banks love it because it gets debt off their books; investors tolerate it for the yields.

💰 Finance / Accounting
Beginner

book-keeping

The meticulous art of recording every financial transaction in a systematic way, traditionally done by people who enjoy spreadsheets more than human interaction. It's the foundation of accounting, involving ledgers, journals, and an obsessive attention to making sure debits equal credits. The only profession where 'excitement' means finding a balanced account.

💰 Finance / Accounting
Advanced

receivership

The financial equivalent of calling in a responsible adult when you've made a complete mess of things—a court-appointed receiver takes control of a failing company to salvage whatever value remains for creditors. It's bankruptcy's slightly less dramatic cousin, where someone competent temporarily runs your business while you watch from the sidelines. Usually signals that things have gone very, very wrong.

💰 Finance / Accounting

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See “put” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.

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