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Investments glossary

Political Action Committee (PAC)

Political action committees (PACs) are formed to privately raise money to donate to a political campaign in hopes of influencing the election. Super PACs can raise unlimited amounts of money to influence an election, but they are not permitted to donate read more

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Investments glossary

Random Variable Definition

A random variable is a variable whose value is unknown or a function that assigns values to each of an experiment’s outcomes. Random variables are often designated by letters and can be classified as discrete, which are variables that have specific read more

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Investments glossary

Equivalent Annual Cost – EAC Definition

Equivalent annual cost (EAC) is the annual cost of owning, operating, and maintaining an asset over its entire life. EAC is often used by firms for capital budgeting decisions, as it allows a company to compare the cost-effectiveness of various assets read more

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Investments glossary

Protecting Americans From Tax Hikes (PATH) Act

The Protecting Americans from Tax Hikes (PATH) Act of 2015 was created to protect taxpayers and their families against fraud and permanently extend many expiring tax laws. The law affects the timing of certain refunds for tax returns filed each year read more

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Investments glossary

Reorganization

A reorganization is a significant and disruptive overhaul of a troubled business intended to restore it to profitability. It may include shutting down or selling divisions, replacing management, cutting budgets, and laying off workers.

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Investments glossary

Errors and Omissions Insurance (E&O)

Errors and omissions insurance (E&O) is a type of professional liability insurance that protects companies, their workers, and other professionals against claims of inadequate work or negligent actions.

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Investments glossary

Monopolist

A monopolist is an individual, group, or company that controls all of the market for a particular good or service. A monopolist probably also believes in policies that favor monopolies since it gives them greater power. A monopolist has little incentive read more

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Investments glossary

Ramp Up

Ramp up is a significant increase in the level of output of a company’s products or services. A ramp-up typically occurs in anticipation of an imminent increase in demand. While it is generally a feature of smaller companies at an early stage read more

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Investments glossary

Guaranteed Payments to Partners

Guaranteed payments to partners are payments meant to compensate a partner for services rendered or use of capital. Essentially, they are the equivalent of a salary for partners or limited liability company (LLC) members. These kinds of payments eliminate read more

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Investments glossary

Capital Account

The capital account, in international macroeconomics, is the part of the balance of payments which records all transactions made between entities in one country with entities in the rest of the world. These transactions consist of imports and exports read more