Wealth Tax
DefinitionA wealth tax is a levy on the total value of personal assets, including: bank deposits, real estate, assets in insurance and pension plans, ownership of unincorporated businesses, financial securities, and personal trusts. Typically liabilities are deducted, hence it is sometimes called a net wealth tax. Wealth Tax What is 'Wealth Tax' It is a tax based...
Wal-Mart Effect
What is 'Wal-Mart Effect' The economic impact felt by local businesses when a large firm such as Wal-Mart opens a location in the area. The Wal-Mart effect usually manifests itself by forcing smaller retail firms out of business and reducing wages for competitors' employees. Many local businesses oppose the introduction of Wal-Marts into their territories for this...
Wage-Price Spiral
What is 'Wage-Price Spiral' The wage-price spiral is a macroeconomic theory used to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. The wage-price spiral suggests that rising wages increases disposable income, thus raising the demand for goods and causing prices to rise. Rising prices cause demand for higher wages, which leads to higher...
Leadership
What is 'Leadership' Leadership is the ability of a company's management to set and achieve challenging goals, take swift and decisive action, outperform the competition, and inspire others to perform well. It is tough to place a value on leadership or other qualitative aspects of a company, compared to quantitative metrics that are commonly tracked and much...
Qualifying Ratios
What is 'Qualifying Ratios' A set of ratios that are used by lenders to approve borrowers for a mortgage. The borrower's front-end ratio, which is the total housing expense compared to the borrower's gross monthly income, is compared to the borrower's back-end ratio, which comprises of the total housing expense and other consumer debt compared to the...
Gantt Chart
DefinitionA Gantt chart is a type of bar chart that illustrates a project schedule, named after their inventor, Henry Gantt, who designed such a chart around the years 1910–1915. Modern Gantt charts also show the dependency relationships between activities and current schedule status. Gantt Chart What is a 'Gantt Chart' A Gantt chart is a graphical depiction...
Gamma Pricing Model
What is 'Gamma Pricing Model' An equation for determining the fair market value of a European-style option when the price movement on the underlying asset does not resemble a normal distribution. The gamma pricing model is intended to price options where the underlying asset has a distribution that is either long-tailed or skewed, where dramatic market moves...
Gazelle Company
What is 'Gazelle Company' A high-growth company that is increasing its revenues by at least 20% annually for four years or more, starting from a revenue base of at least $1 million. This growth pace means that the company has effectively doubled its revenues over a four-year period. As gazelle companies are characterized by their rapid growth...
Garnishment
DefinitionGarnishment is an American legal process for collecting a monetary judgment on behalf of a plaintiff from a defendant. Garnishment allows the plaintiff to take the money or property of the debtor from the person or institution that holds that property. A similar legal mechanism called execution allows the seizure of money or property held directly by the debtor....
Generally Accepted Principles And Practices (GAPP)
What is 'Generally Accepted Principles And Practices - GAPP' Standardized business procedures related to the operation of sovereign wealth funds (SWFs). The generally accepted principles and practices (GAPP), agreed upon by 23 countries with SWFs in October 2008, state that SWFs will pursue financial, rather than political, agendas. What's more, SWFs abiding by the GAPP vow to...