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Investments glossary

Undivided Account

An undivided account, or eastern account, is an offering of a new issue in which underwriters are jointly and severally responsible for placing the total offering. Each underwriting firm is liable for placing unsold portions of the issue from other read more

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Investments glossary

Hawala

Hawala is an informal method of transferring money without any physical money actually moving. Interpol’s definition of hawala is money transfer without money movement. Another definition is simply trust. Hawala is used today as an alternative read more

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Investments glossary

Early Adopter

The term early adopter refers to an individual or business who uses a new product, innovation, or technology before others. An early adopter is likely to pay more for the product than later adopters but accepts this premium if using the product improves read more

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Investments glossary

Jack Welch

Jack Welch was the chairman and CEO of General Electric (GE) from 1981 – 2001. Welch expanded the company, leading it to a dramatically increased market value from $14 billion to $410 billion under his leadership. Welch had a reputation as read more

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Investments glossary

Tax Lien

A tax lien is a legal claim against the assets of an individual or business who fails to pay taxes owed to the government. In general, a lien serves to guarantee payment of a debt such as a loan or, in this case, taxes. If the obligation is not satisfied, read more

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Investments glossary

Arbitrage Pricing Theory (APT)

Arbitrage pricing theory (APT) is a multi-factor asset pricing model based on the idea that an asset’s returns can be predicted using the linear relationship between the asset’s expected return and a number of macroeconomic variables that capture read more

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Investments glossary

Uptick Rule

The Uptick Rule (also known as the plus tick rule) is a rule established by the Securities and Exchange Commission (SEC) that requires short sales to be conducted at a higher price than the previous trade.

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Investments glossary

Blue-Chip Stock

A blue-chip stock is a huge company with an excellent reputation. These are typically large, well-established and financially sound companies that have operated for many years and that have dependable earnings, often paying dividends to investors. read more

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Investments glossary

Enron

Enron was an energy-trading and utilities company based in Houston, Texas, that perpetrated one of the biggest accounting frauds in history. Enron’s executives employed accounting practices that falsely inflated the company’s revenues and, read more

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Investments glossary

Zero Percent

Zero percent refers to a promotional rate of interest used to entice consumers. Zero percent interest rates are often offered by credit card issuers and sometimes by sellers of big-ticket items like home appliances.