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Investments glossary

Long-Term Debt-to-Total-Assets Ratio Definition

The long-term debt-to-total-assets ratio is a measurement representing the percentage of a corporation’s assets financed with long-term debt, which encompasses loans or other debt obligations lasting more than one year. This ratio provides a read more

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Investments glossary

Foreign Account Tax Compliance Act (FATCA)

The Foreign Account Tax Compliance Act (FATCA) is a tax law that compels U.S. citizens at home and abroad to file annual reports on any foreign account holdings. FATCA was endorsed in 2010 as part of the HIRE Act to promote transparency in the global read more

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Investments glossary

Wilcoxon Test

The Wilcoxon test, which can refer to either the Rank Sum test or the Signed Rank test version, is a nonparametric statistical test that compares two paired groups. The tests essentially calculate the difference between sets of pairs and analyzes these read more

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Investments glossary

Fixed Asset Turnover Ratio

The fixed asset turnover ratio (FAT) is, in general, used by analysts to measure operating performance. This efficiency ratio compares net sales (income statement) to fixed assets (balance sheet) and measures a company’s ability to generate net read more

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Investments glossary

Vendor Financing

Vendor financing is a financial term that describes the lending of money by a vendor to a customer who uses that capital to purchase that specific vendor’s product or service offerings. Sometimes called trade credit, vendor financing usually read more

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Investments glossary

Stagflation

Stagflation is a seemingly contradictory condition described by slow economic growth and relatively high unemployment, or economic stagnation, which is at the same time accompanied by rising prices (i.e. inflation). Stagflation can also be alternatively read more

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Investments glossary

Economic Indicator

An economic indicator is a piece of economic data, usually of macroeconomic scale, that is used by analysts to interpret current or future investment possibilities. These indicators also help to judge the overall health of an economy.

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Investments glossary

Volatility Skew Definition

The volatility skew is the difference in implied volatility (IV) between out-of-the-money options, at-the-money options, and in-the-money options. The volatility skew, which is affected by sentiment and the supply and demand relationship of particular read more

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Investments glossary

Delinquent

Delinquent describes something or someone who fails to accomplish that which is required by law, duty, or contractual agreement, such as the failure to make a required payment or perform a particular action.

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Investments glossary

Original Issue Discount – OID

An original issue discount (OID) is the discount in price from a bond’s face value at the time a bond or other debt instrument is first issued. Bonds can be issued at a price lower than their face value—known as a discount. The OID is the amount read more