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...
Underinvestment Problem
What is an 'Underinvestment Problem' When a corporation refuses to invest in low-risk assets in order to increase its wealth at the expense of debt holders, this is referred to as an agency dilemma. Low-risk initiatives give more security for the firm's loan holders since they may create a consistent stream of income that can be used to repay the...
Natural Gas Storage Indicator (EIA Report)
What is 'Natural Gas Storage Indicator - EIA Report' The U.S. Energy Information Administration (EIA) weekly estimate of working natural gas volumes held in underground storage facilities at the national and regional levels. Changes in these gas inventories on a weekly basis primarily reflect net withdrawals or injections. The report is generally reported every Thursday at 10:30am...
Earnings
The amount of money that a company generates during a specific time period is called as ‘earnings’. This amount of money, to put it simply is the profits it has made in a certain amount of time which is usually defined as a quarter or a year. Earnings: Simple to calculate or complex? To elaborate this further, consider you have a...