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Investments glossary

Wet Loan

A wet loan is a mortgage in which the funds realize at—or with the completion of—a loan application. Submission of other required documentation for closing the property, such as surveys and title searches, happens after the dispersion of funds.

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Investments glossary

Nonprofit Organization (NPO)

A nonprofit organization is a business that has been granted tax-exempt status by the Internal Revenue Service (IRS) because it furthers a social cause and provides a public benefit. Donations made to a nonprofit organization are typically tax-deductible read more

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Investments glossary

Written Premium

A written premium is an accounting term in the insurance industry used to describe the total amount customers are required to pay for insurance coverage on policies issued by a company during a specific period of time. Written premiums factor in read more

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Investments glossary

Mosaic Theory

The mosaic theory refers to a method of analysis used by security analysts to gather information about a corporation. The mosaic theory involves collecting public, non-public, and non-material information about a company to determine the underlying read more

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Investments glossary

Equity-Linked Note (ELN)

An equity-linked note (ELN) is an investment product that combines a fixed-income investment with additional potential returns that are tied to the performance of equities. Equity-linked notes are usually structured to return the initial investment read more

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Investments glossary

High-Low Method Definition

In cost accounting, the high-low method is a way of attempting to separate out fixed and variable costs given a limited amount of data. The high-low method involves taking the highest level of activity and the lowest level of activity and comparing read more

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Investments glossary

Regulation SHO

Regulation SHO is a piece of Securities and Exchange Commission (SEC) legislation, implemented in 2005 to update rules concerning short sale practices. Regulation SHO established locate and close-out standards that are primarily aimed at preventing read more

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Investments glossary

World Economic Forum (WEF)

The World Economic Forum (WEF) is an international organization headquartered in Geneva, Switzerland that brings together its membership on a yearly basis to discuss major issues concerning the world political economy. These include but are not limited read more

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Investments glossary

Operating Earnings

Operating earnings are the profit earned after subtracting from revenues only those expenses that are directly associated with operating the business, such as the cost of goods sold (COGS), general and administration (G&A), selling and marketing, read more

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Investments glossary

Shareholder Value Definition

Shareholder value is the value delivered to the equity owners of a corporation due to management’s ability to increase sales, earnings, and free cash flow, which leads to an increase in dividends and capital gains for the shareholders.