An agent is a person who acts on behalf of another person or institution in a transaction. For example, when you direct your stockbroker to buy or sell shares in your account, he or she is acting as your agent in the trade.Agents work for either a set fee or a commission based on the size of the transaction and the type of product, or sometimes a c [..]

A premium is the purchase price of an insurance policy or an annuity contract. You may pay the premium as a single lump sum, in regular monthly or quarterly installments, or in some cases on a flexible schedule over the term of the policy or contract. When you pay over time, the premium may be fixed for the life of the policy, assuming the coverage [..]

The prime rate is a benchmark for interest rates on business and consumer loans. For example, a bank may charge you the prime rate plus two percentage points on a car loan or home equity loan.The prime rate is determined by the federal funds rate, which is the rate banks charge each other to borrow money overnight. If banks must pay more to borrow, [..]

An underwriter, typically an investment banker, buys an entire new securities issue from the company or government offering it, and resells the issue as individual stocks or bonds to the public.Part of the underwriter's job is to weigh the risks involved in taking on the financial responsibility of finding buyers against the profit to be ma [..]