Profit and Loss Statement
DefinitionAn income statement or profit and loss account is one of the financial statements of a company and shows the company's revenues and expenses during a particular period. It indicates how the revenues are transformed into the net income. The purpose of the income statement is to show managers and investors whether the company made or lost money during...
Paraplanning
What is 'Paraplanning' A relatively new position within the financial planning industry that involves the performance of the administrative duties of a financial planner. This function was created to allow financial planners to focus on the sell-side by working more closely with customers to identify their investing needs. Explaining 'Paraplanning' Paraplanners do most of...
Put Option
DefinitionIn finance, a put or put option is a stock market device which gives the owner of a put the right, but not the obligation, to sell an asset, at a specified price, by a predetermined date to a given party. The purchase of a put option is interpreted as a negative sentiment about the future value of the...
Market Capitalization
DefinitionMarket capitalization is the market value of a publicly traded company's outstanding shares. Market capitalization is equal to the share price multiplied by the number of shares outstanding. As outstanding stock is bought and sold in public markets, capitalization could be used as an indicator of public opinion of a company's net worth and is a determining factor in...
National Bank
What is a 'National Bank' A national bank, in the United States, is a commercial bank chartered by the comptroller of the currency of the U.S. Treasury. A national bank functions as a member bank of the Federal Reserve in the capacity of investing member of its district Federal Reserve Bank. These banks may facilitate the auction...
Harvard Business School
DefinitionHarvard Business School is the graduate business school of Harvard University in Boston, Massachusetts. The school offers a large full-time MBA program, doctoral programs, HBX and many executive education programs. It owns Harvard Business Publishing, which publishes business books, leadership articles, online management tools for corporate learning, case studies and the monthly Harvard Business Review. It is home to...
Handle
What is a 'Handle' A handle is the whole number part of a price quote. In a quote the handle could be $56, while the price quote for stock might be $56.25. The quote's handle eliminates the part of the price quote that is a decimal. In foreign exchange markets, the handle refers to the part of...
Macroeconomics
DefinitionMacroeconomics is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole. This includes regional, national, and global economies. Macroeconomics What is 'Macroeconomics' Macroeconomics is a branch of the economics field that studies how the aggregate economy behaves. In macroeconomics, a variety of economy-wide phenomena is thoroughly examined such...
Impose
What is 'Impose' The act of placing a fee, levy, tax or charge on an asset or transaction to the detriment of the investor. The imposition of fees is a common practice in most investment products and services, and may be used as a deterrent to selling or exiting a financial position early. ...
Sales Charge
What is a 'Sales Charge' A sales charge is a commission paid by an investor on his or her investment in a mutual fund. The sales charge is paid to a financial intermediary (broker, financial planner, investment adviser, etc.) for selling the fund and is intended to provide compensation for the financial salesperson's efforts in assisting clients...