Abandonment Value
What is 'Abandonment Value' The value of a project or asset if it were immediately liquidated or sold. The abandonment value of an asset or project can vary for a variety of reasons including liquidity, supply-demand factors and implied fair value appraisals performed by certified appraisers. Explaining 'Abandonment Value' The abandonment value is generally a...
Know Your Client (KYC)
What is 'Know Your Client - KYC' The Know Your Client form is a standard form in the investment industry that ensures investment advisors know detailed information about their clients' risk tolerance, investment knowledge and financial position. Explaining 'Know Your Client - KYC' The Know Your Client (KYC) rule is an ethical requirement for those in...
Kenneth Arrow
DefinitionKenneth Joseph "Ken" Arrow was an American economist, mathematician, writer, and political theorist. He was the joint winner of the Nobel Memorial Prize in Economic Sciences with John Hicks in 1972. Kenneth Arrow What is 'Kenneth Arrow' An American neoclassical economist who won the Nobel Memorial Prize in Economics along with John Hicks in 1972 for his...
UCC-1 Statement
What is 'UCC-1 Statement' One of the standard mortgage documents listed in the Uniform Commercial Code. The UCC-1 Statement lists and describes any personal property that is provided by the borrower as collateral for the loan. This document must be filed with either the Secretary of State or another appropriate official. Explaining 'UCC-1 Statement' ...
Target Market
DefinitionA target market is a group of customers within a business's serviceable available market that the business has decided to aim its marketing efforts towards. Target markets consist of consumers who exhibit similar characteristics and are considered most likely to buy a business's product or service. Target Market What is a 'Target Market' A target market is...
Ulcer Index (UI)
What is 'Ulcer Index - UI' A technical indicator that measures downside risk, in terms of both depth and duration of price declines. The Ulcer Index (UI) increases in value as the price moves farther away from a recent high, and falls as the price rises to new highs. The indicator is usually calculated over 14 days,...
Economic Cycle
DefinitionThe business cycle, also known as the economic cycle or trade cycle, is the downward and upward movement of gross domestic product around its long-term growth trend. The length of a business cycle is the period of time containing a single boom and contraction in sequence. These fluctuations typically involve shifts over time between periods of relatively rapid economic...
Outstanding Shares
DefinitionShares outstanding are all the shares of a corporation or financial asset that have been authorized, issued and purchased by investors and are held by them. They have rights and represent ownership in the corporation by the person who holds the shares. They are distinguished from treasury shares, which are shares held by the corporation itself and have no...
Target Cash Balance
What is 'Target Cash Balance' The ideal amount of cash that a company wishes to hold in reserve at any given point in time. This figure hopes to strike a balance between the investment opportunity costs of holding too much cash and the balance sheet costs of holding too little. Companies with excess cash on hand may...
Naked Trust
Definition A naked trust is a trust in which the beneficiary has a right to both income and capital and has the ability to request that both be transferred into his own name, as opposed to a remainder trust. Assets in a bare trust are kept in the name of the trustee, but the beneficiary has the right to receive...