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Investments glossary

Glass Cliff

Glass cliff refers to a phenomenon wherein women tend to be promoted to positions of power during times of crises, when failure is more likely. British professors Michelle K. Ryan and Alexander Haslam of the University of Exeter, United Kingdom, read more

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Investments glossary

Analysis of Variance (ANOVA)

Analysis of variance (ANOVA) is an analysis tool used in statistics that splits an observed aggregate variability found inside a data set into two parts: systematic factors and random factors. The systematic factors have a statistical influence on read more

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Investments glossary

CUSIP Number

CUSIP refers to the Committee on Uniform Securities Identification Procedures which oversees the entire CUSIP system. The CUSIP number is a unique identification number assigned to all stocks and registered bonds in the United States and Canada, and read more

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Investments glossary

Unitized Fund

A unitized fund is a type of investment fund structure that uses pooled money to invest with individually reported unit values for investors. Assets in the pool are managed to a specific objective, often with concentration in one stock. Investors read more

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Investments glossary

National Futures Association (NFA)

The National Futures Association (NFA) is an independent self-regulatory organization for the U.S. futures and derivatives markets. Designated by the Commodities Futures Trade Commission (CFTC) as a registered futures association, the NFA’s mandate read more

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Investments glossary

Payback Period

The payback period refers to the amount of time it takes to recover the cost of an investment. Simply put, the payback period is the length of time an investment reaches a break-even point.

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Investments glossary

Voluntary Simplicity

Voluntary simplicity is a lifestyle choice that minimizes the needless consumption of material goods and the pursuit of wealth for its own sake. It is sometimes referred to as simple living, the simple life, or downshifting. People embrace voluntary read more

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Investments glossary

Licensing Fee

The term licensing fee can be used in several contexts, where it’s most commonly used to describe an amount of money paid to an entity for a certain right or ability. A licensing fee can be an amount of money paid by an individual or business to read more

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Investments glossary

125% Loan

A 125% loan is a loan—usually a mortgage—with an initial loan amount equal to 125% of the initial property value. For example, if your home is worth $300,000, a 125% loan would let you borrow $350,000.

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Investments glossary

Bottom Line

The bottom line refers to a company’s earnings, profit, net income, or earnings per share (EPS). The reference to bottom line describes the relative location of the net income figure on a company’s income statement.