Management Tenure
What is 'Management Tenure' The length of time that a manager(s) has been at the helm of a mutual fund. A long-term fund performance record, preferably of five to 10 years, is a key indicator of a fund manager's investing abilities. Explaining 'Management Tenure' Mutual fund investors are best served by investment managers who...
Manufacturing Resource Planning (MRP II)
What is 'Manufacturing Resource Planning - MRP II' Manufacturing Resource Planning (MRP II) is an integrated information system used by businesses. Manufacturing Resource Planning (MRP II) evolved from early Materials Requirement Planning (MRP) systems by including the integration of additional data, such as employee and financial needs. The system is designed to centralize, integrate and process information...
Above Full-Employment Equilibrium
What is 'Above Full-Employment Equilibrium' A macroeconomic term used to describe the real gross domestic product (GDP) is currently in excess of its long-run average, or some other historical measure. Accordingly, the amount that the current real GDP is greater then the historic average is called an inflationary gap, as this will create inflationary pressures in this...
Same-Day Funds
What are same-day funds and what do they mean for businesses When a business owner hears the term "same-day funds," they may think it refers to the amount of money they have on hand to meet needs that arise throughout the course of a day. However, same-day funds actually refer to a type of merchant account where payments are processed...
Magic Formula Investing
DefinitionMagic formula investing is a term referring to an investment technique outlined by Joel Greenblatt that uses the principles of value investing. Magic Formula Investing What is 'Magic Formula Investing' A money-making strategy that teaches investors a common-sense method for value investing in the stock market that is designed to beat the market's average annual returns. The...
Absolute Return Index
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 posted by the hedge fund market as a whole against individual hedge funds. Explaining 'Absolute Return Index' ...
Backup Withholding
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 Revenue Agency) will be able to receive income taxes owed to them from investors' earnings. Backup withholding may be applied...
Key Money
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 new tenant where the rent is below market. It sometimes means a bribe to a landlord. In other parts of...
Hedge Fund
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, and often structured as a limited partnership, limited liability company, or similar vehicle. Hedge funds are generally distinct from mutual...
Tangible Net Worth
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 by subtracting the entire value of a company's tangible assets from the total value of the company's liabilities. Individuals may...