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Investments glossary

Operating Earnings

Operating earnings are the profit earned after subtracting from revenues only those expenses that are directly associated with operating the business, such as the cost of goods sold (COGS), general and administration (G&A), selling and marketing, read more

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Investments glossary

Shareholder Value Definition

Shareholder value is the value delivered to the equity owners of a corporation due to management’s ability to increase sales, earnings, and free cash flow, which leads to an increase in dividends and capital gains for the shareholders.

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Investments glossary

Inventory Financing

Inventory financing is a revolving line of credit or a short-term loan that is acquired by a company so it can purchase products for sale later. The products serve as the collateral for the loan.

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Investments glossary

Efficiency Definition

Efficiency signifies a peak level of performance that uses the least amount of inputs to achieve the highest amount of output. Efficiency requires reducing the number of unnecessary resources used to produce a given output including personal time read more

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Investments glossary

Up-Front Mortgage Insurance (UFMI)

Up-front mortgage insurance is an insurance premium that is collected, typically on Federal Housing Administration (FHA) loans, at the time the loan is initially made. Though similar, it is not quite the same as private mortgage insurance (PMI), which read more

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Investments glossary

Portfolio Runoff

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Investments glossary

Z-Score Definition

A Z-score is a numerical measurement used in statistics of a value’s relationship to the mean (average) of a group of values, measured in terms of standard deviations from the mean. If a Z-score is 0, it indicates that the data point’s read more

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Investments glossary

Liquidating Dividend

A liquidating dividend is a type of payment that a corporation makes to its shareholders during a partial or full liquidation. For the most part, this form of distribution is made from the company’s capital base. As a return of capital, this read more

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Investments glossary

Linearly Weighted Moving Average (LWMA)

A linearly weighted moving average (LWMA) is a moving average calculation that more heavily weights recent price data. The most recent price has the highest weighting, and each prior price has progressively less weight. The weights drop in a linear read more

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Investments glossary

Form 6251: Alternative Minimum Tax—Individuals Definition

Form 6251 is an Internal Revenue Service (IRS) tax form used to determine the amount of alternative minimum tax (AMT) that a taxpayer may owe. Some taxpayers with higher incomes can claim certain deductions that allow them to reduce their regular tax read more