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Insurance

Pooling

of investors is known as pro rata Pro rata refers to the practice of distributing total losses among a group of investors. This is done in proportion to each investor's stake in the venture. In other words, the bigger the investment, the greater the share of the losses. This concept is commonly used in the world of finance and is essential to understand for any investor. It ensures that everyone bears a fair share of the risks and rewards. So, always keep pro rata in mind when making investment decisions.

Securities outstanding

Shareholders hold stocks, which represent ownership in a company. These stocks can be in the form of common or preferred shares. Common shares give shareholders voting right...

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Malpractice insurance

"Let's talk about professional liability coverage, which is crucial for individuals in highly specialized fields such as physicians, lawyers, and other professionals. This c...

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Straight life

A permanent life insurance policy that requires premiums to be paid for the entire duration of the insured's life is known as a whole life policy. This type of policy offers...

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Combined ratio

Let's explore the concept of combined ratio, a fundamental metric in the world of finance and insurance. Essentially, it measures the percentage of each premium rupee that a...

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