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Investments glossary

Wage Expense

Wage expense is the cost incurred by companies to pay hourly employees. This line item may also include payroll taxes and benefits paid to employees. Wage expense may be recorded as a line item in the expense portion of the income statement. This read more

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Investments glossary

Venture Capital Funds

Venture capital funds are investment funds that manage the money of investors who seek private equity stakes in startup and small- to medium-sized enterprises with strong growth potential. These investments are generally characterized as high-risk/high-return read more

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Investments glossary

One-Third Rule

The one-third rule estimates change in labor productivity based on changes in capital devoted to labor. The rule is used to determine the impact that changes in technology or capital have on production.

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Investments glossary

OPEC Basket

The OPEC basket is a weighted average of oil prices from the different OPEC members around the world. Members of the Organization of the Petroleum Exporting Countries (OPEC) contribute data which forms the basis of the basket. The basket is a benchmark, read more

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Investments glossary

Relative Strength Index (RSI)

The relative strength index (RSI) is a momentum indicator used in technical analysis that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset. The RSI is displayed as an read more

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Investments glossary

Public Good

A public good is a product that an individual can consume without reducing its availability to others and of which no one is deprived. Examples of public goods include law enforcement, national defense, sewer systems, public parks, and the air we breathe. read more

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Investments glossary

Hybrid Annuity

A hybrid annuity is a retirement income investment that allows investors to split their funds between fixed-rate and variable-rate components. Investors can divide their savings between conservative assets that offer a low but guaranteed rate of return read more

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Investments glossary

Total-Debt-to-Total-Assets Ratio Definition

Total-debt-to-total-assets is a leverage ratio that defines the total amount of debt relative to assets owned by a company. Using this metric, analysts can compare one company’s leverage with that of other companies in the same industry. This read more

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Investments glossary

Fund Of Funds (FOF)

A fund of funds (FOF)—also known as a multi-manager investment—is a pooled investment fund that invests in other types of funds. In other words, its portfolio contains different underlying portfolios of other funds. These holdings replace any investing read more

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Investments glossary

Employment Insurance (EI)

Employment Insurance (EI) is an unemployment insurance program in Canada that allows individuals who have recently lost a job to receive temporary financial assistance. Employment insurance can also be extended to individuals who are unable to work read more