Value Investing
DefinitionValue investing is an investment paradigm which generally involves buying securities that appear underpriced by some form of fundamental analysis, though it has taken many forms since its inception. It derives from the ideas on investment that Benjamin Graham and David Dodd began teaching at Columbia Business School in 1928 and subsequently developed in their 1934 text Security Analysis....
Import
What is an 'Import' An import is a good or service brought into one country from another. The word "import" is derived from the word "port," since goods are often shipped via boat to foreign countries. Along with exports, imports form the backbone of international trade; the higher the value of imports entering a country, compared to...
Pari-passu
Definition Pari passu is a Latin phrase that literally means "with an equal step" or "on equal footing". It is sometimes translated as "ranking equally", "hand-in-hand", "with equal force", or "moving together", and by extension, "fairly", "without partiality". What is 'Pari-passu' It is a Latin word that literally translates as "on equal footing," and it characterizes circumstances when two or more assets,...
Off Balance Sheet (OBS)
What is an 'Off Balance Sheet - OBS' Off balance sheet (OBS) items refer to assets or liabilities that do not appear on a company's balance sheet but that are nonetheless effectively assets or liabilities of the company. Assets or liabilities designated off balance sheet are typically ones that a company is not the recognized legal owner...
Early Amortization
What is 'Early Amortization' A type of credit enhancement used in certain asset backed securities (ABS). Early amortization is an accelerated payment of bond principal in an asset-backed security, usually triggered when there is a sudden increase in delinquencies in the underlying loans or when excess spread, the issuer's net profit after deducting servicing fees, charge-offs and...
Unbundled Life Insurance Policy
What is ‘Unbundled Life Insurance Policy' An unbundled life insurance policy is a type of insurance policy and planned financial protection that offers money to the insurance policy's beneficiaries when the policyholder dies, as the unbundled life insurance policy has both savings and investment which can be used during the policy holder's lifetime as well. Unbundled life insurance is another word...
Callable Certificate Of Deposit
What is 'Callable Certificate Of Deposit' An FDIC insured certificate of deposit (CD) that contains a call feature similar to other types of callable fixed-income securities. Callable CDs can be redeemed (called away) by the issuing bank prior to their stated maturity, usually within a given time frame, and at a preset call price. Explaining...
Jobless Recovery
DefinitionA jobless recovery or jobless growth is an economic phenomenon in which a macroeconomy experiences growth while maintaining or decreasing its level of employment. The term was coined by the economist Nick Perna in the early 1990s. Jobless Recovery What is 'Jobless Recovery' An economic recovery, following a recession, where the economy as a whole improves, but...
John T. Dillon
DefinitionJohn T. Dillon, is the retired chairman and chief executive officer of International Paper. John T. Dillon What is 'John T. Dillon' A former president, chairman and CEO of International Paper Co., a plywood, paper, pulp, packaging and chemical company. Dillon joined International Paper in 1965 as a sales trainee. Over the next 30 years, he worked...
James Tobin
What is 'James Tobin' An American economist who won the Nobel Memorial Prize in Economics in 1981 for his analysis of financial markets and specifically for his development of portfolio-selection theory, which describes how investors mitigate risk in their portfolios by selecting some combination of high and low-risk investments. Tobin was a Keynesian economist and his research...