What Is a Resident Alien? A resident alien is an individual who is not a U.S. citizen but meets the criteria to be considered a resident for tax purposes. This means that they are required to pay taxes on their worldwide income, just like U.S. citizens. Resident alien status is … …
What is a Waiver of Restoration Premium? A Waiver of Restoration Premium is a type of insurance policy that provides coverage for the cost of restoring a damaged property to its original condition. This type of coverage is typically offered as an add-on to a standard insurance policy and is … …
Types of Imperfect Markets In economics, imperfect markets refer to markets that do not meet the conditions of perfect competition. These markets are characterized by various factors that restrict the free flow of goods, services, or information, leading to inefficiencies and distortions in resource allocation. Monopoly A monopoly is a … …
The Definition of Walras’s Law Walras’s Law is a fundamental concept in economics that helps to explain the relationship between supply and demand in a market economy. It is named after the French economist Léon Walras, who first introduced the concept in the late 19th century. At its core, Walras’s … …
What Is an Inefficient Market? An inefficient market refers to a financial market where the prices of assets do not accurately reflect all available information. In such a market, there are opportunities for investors to make profits by exploiting the discrepancies between the market price and the true value of … …
What is a Qualified Opinion? A qualified opinion is a type of opinion that an auditor expresses in their report when they have identified certain limitations or exceptions in a company’s financial statements. It indicates that the auditor is unable to provide an unqualified opinion due to the identified issues. … …
Definition of a Day Order A day order is a type of trading order that specifies that the order must be executed within the same trading day it is placed. If the order is not executed by the end of the trading day, it is automatically canceled. Day orders are … …
Vendor Note: Everything You Need to Know A vendor note is a financial instrument that is used in corporate finance transactions. It is a form of debt issued by a company to a vendor or supplier as a means of payment for goods or services provided. The vendor note represents … …
What is Attribution Analysis? Attribution analysis is a method used in finance to evaluate the performance of a portfolio or investment strategy by breaking down the sources of returns. It helps investors and fund managers understand the factors that contribute to the overall performance of their investments. The concept of … …
What Is an Acquisition: Definition, Meaning, Types, and Examples [M&A catname] An acquisition refers to the process through which one company takes over another company, either by purchasing its assets or by acquiring its ownership stakes. This strategic move is commonly employed by businesses to expand their operations, increase market … …
What Is a Falling Knife and How to Use It for Investing and Trading A falling knife is a term used in investing and trading to describe a stock or asset that is experiencing a rapid decline in price. This decline is often sudden and significant, resembling the motion of … …
What Is Asset Management? Asset management refers to the professional management of various types of assets, such as stocks, bonds, real estate, and other investments, on behalf of individuals, institutions, or corporations. It involves the strategic planning, acquisition, operation, and disposition of assets to maximize their value and generate returns … …
What Is Contractionary Policy? Contractionary policy refers to a set of measures implemented by a government or central bank to reduce the money supply and slow down economic growth. It is often used to control inflation and prevent the economy from overheating. Purpose of Contractionary Policy The main purpose of … …
What Is a Depositary Receipt (DR)? A Depositary Receipt (DR) is a financial instrument that represents ownership in a company’s shares, which are held by a depositary bank outside the company’s home country. DRs are issued by depositary banks to facilitate the trading of shares of foreign companies in the … …
United Nations: Definition, Purpose, Structure, and Members The United Nations is an international organization founded in 1945 with the aim of promoting peace, security, and cooperation among nations. It serves as a platform for member countries to discuss and address global issues, such as poverty, climate change, and human rights. … …
Definition and Explanation Agency costs can occur in various situations, such as when a company hires a manager to run its operations, when a company engages a broker to handle its financial transactions, or when a company contracts with a marketing agency to promote its products or services. In each … …
What Is a Naked Put? How Does a Naked Put Work? When an investor sells a naked put, they are essentially taking on the obligation to buy the underlying stock at the strike price if the buyer of the put option decides to exercise it. The investor receives a premium … …
What Is a Monopoly? A monopoly is a market structure in which a single seller or producer controls the entire supply of a particular good or service. This gives the monopolistic firm significant market power and the ability to set prices and dictate terms without facing competition. In a monopoly, … …
What is a Variable Annuity? A variable annuity is a type of investment product that offers individuals a way to save for retirement. It is a contract between an individual and an insurance company, where the individual makes a series of payments or a lump sum payment, and in return, … …
What is the Reserve Ratio? The reserve ratio is a financial ratio that measures the proportion of a bank’s total deposits that it is required to hold in reserve as cash or as deposits with the central bank. It is an important tool used by central banks to control the … …
Vostro Account: Definition, Purpose, Services The services provided by a Vostro account include facilitating cross-border payments, managing foreign currency transactions, and providing liquidity to the foreign bank. It allows the foreign bank to access local currency and make payments on behalf of their customers in the local market. One example … …
What is Wash Trading and How Does It Work? Wash trading is a manipulative trading practice that involves buying and selling the same financial instrument simultaneously or near-simultaneously to create the appearance of trading activity. It is a form of market manipulation that is illegal in most jurisdictions. The main … …
Unit Sales: Definition, Calculation, and Example Unit sales refer to the total number of units of a product or service that are sold within a specific period of time. It is an important metric used in financial analysis to evaluate the performance and profitability of a business. By tracking unit … …
What is the GRE Exam? The GRE (Graduate Record Examination) is a standardized test that is required for admission to many graduate programs in the United States and other English-speaking countries. It is administered by the Educational Testing Service (ETS) and is designed to assess a student’s readiness for graduate-level … …
What Is a Proxy Vote? Proxy voting allows shareholders who are unable to attend a meeting in person to still have a say in the decision-making process. It is a way for shareholders to exercise their voting rights and have their voice heard, even if they are unable to physically … …
What Is a 1035 Exchange? A 1035 exchange is a provision in the United States tax code that allows for the tax-free exchange of certain types of insurance policies. This provision is named after Section 1035 of the Internal Revenue Code, which outlines the rules and regulations for these exchanges. … …
What Are Tertiary Sectors? Examples of tertiary sector activities include banking, insurance, healthcare, education, hospitality, tourism, transportation, and professional services such as legal and accounting. These services are essential for the smooth functioning of society and the economy. The tertiary sector plays a crucial role in modern economies, as it … …
What Is Inverse Correlation? Inverse correlation is a statistical concept that measures the relationship between two variables in a dataset. It is the opposite of direct or positive correlation, where the variables move in the same direction. Inverse correlation occurs when one variable increases while the other decreases, or vice … …
What Is Level 2 on Nasdaq: Definition, How It Works, and Example [DAY TRADING catname] By analyzing Level 2 data, traders can identify key support and resistance levels, as well as potential buying and selling opportunities. For example, if there is a large number of buy orders at a specific … …