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Investments glossary

Autonomous Expenditure

An autonomous expenditure describes the components of an economy’s aggregate expenditure that are not impacted by that same economy’s real level of income. This type of spending is considered automatic and necessary, whether occurring read more

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Investments glossary

Underlying Mortality Assumption

Underlying mortality assumptions are projections of expected death rates used by actuaries to estimate insurance premiums and pension obligations. This is based on mortality tables, which are statistical tables of expected annual mortality rates. Because read more

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Investments glossary

Deadweight Loss

A deadweight loss is a cost to society created by market inefficiency, which occurs when supply and demand are out of equilibrium. Mainly used in economics, deadweight loss can be applied to any deficiency caused by an inefficient allocation of resources. read more

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Investments glossary

PEST Analysis

PEST Analysis (political, economic, social and technological) is a management method whereby an organization can assess major external factors that influence its operation in order to become more competitive in the market. As described by the acronym, read more

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Investments glossary

Linked Savings Account

A linked savings account is a savings account that is connected to another account such as a checking or negotiable order of withdrawal (NOW) account. Generally, linked savings accounts are held at the same bank as the customer’s other accounts, read more

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Investments glossary

Merger Arbitrage

Merger arbitrage, often considered a hedge fund strategy, involves simultaneously purchasing and selling the stocks of two merging companies to create riskless profits. A merger arbitrageur reviews the probability of a merger not closing on time or read more

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Investments glossary

Negative Covenant

A negative covenant is a bond covenant preventing certain activities unless agreed to by the bondholders. Negative covenants are written directly into the trust indenture creating the bond issue, are legally binding on the issuer, and exist to protect read more

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Investments glossary

Vetting Definition

Vetting is the process of thoroughly investigating an individual, company, or other entity before making a decision to go forward with a joint project. A background review is a vetting process.

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Investments glossary

Bearer Bond

A bearer bond is a fixed-income security that is owned by the holder, or bearer, rather than by a registered owner. The coupons for interest payments are physically attached to the security. The bondholder is required to submit the coupons to a bank read more

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Investments glossary

Tort Law

Tort law is the area of the law that covers most civil suits. Generally, every claim that arises in civil court, with the exception of contractual disputes, falls under tort law. The concept of this area of law is to redress a wrong done to a person read more