What is 'Absolute Return Index' A stock index designed to measure absolute returns. The absolute return index is actually a composite index made up of five other indexes. This index is used to compare the absolute returns...
What is 'Backup Withholding'
Backup withholding is the tax that is levied on investment income, at an established tax rate, as the investor withdraws it. Backup withholding helps to ensure that government tax-collecting agencies (such as the IRS or Canada...
DefinitionKey money is one of several forms of payment made to a landlord. The term has various meanings in different parts of the world. It sometimes means money paid to an existing tenant who assigns a lease to a...
DefinitionA hedge fund is an investment fund that pools capital from accredited individuals or institutional investors and invests in a variety of assets, often with complex portfolio-construction and risk-management techniques. It is administered by a professional investment management firm,...
What is 'Tangible Net Worth'
It is most typically used to calculate a company's net worth by excluding any value generated from intangible assets, such as copyrights, patents, and intellectual property, from the computation. Tangible net worth may be calculated...
What is 'Management By Objectives - MBO'
Managers use management by objectives (MBO) to enhance the performance of their organizations. MBO is a management approach that tries to improve the performance of an organization by clearly identifying objectives that are...
What is a ‘Parity Price'
When the price of one asset is closely connected to the price of another asset, this is referred to as a parity price. Known as the parity pricing idea, it is used to both stocks...
Investment refers to buying financial assets with the expectation of earning profit in the future. The underlying asset is purchased not for immediate consumption, but to create wealth with the passage of time. An investor purchases an asset with...
What is 'Range Forward Contract'
It is a zero-cost currency forward contract that employs a variety of exchange rates rather than a single rate and has no transaction costs. It is designed in such a way that it gives complete...
What is 'Uncle Sam' A nickname dating back to 1812 used to refer to the U.S. government. The term is said to come from "Uncle Sam" Wilson, who provided barrels of beef to the U.S. Army during...