W-2 Form
What is the 'W-2 Form' The W-2 form is the form that an employer must send to an employee and the Internal Revenue Service (IRS) at the end of the year. The W-2 form reports an employee's annual wages and the amount of taxes withheld from his or her paycheck. Explaining 'W-2 Form' A W-4 is a form that individuals complete for...
K-Ratio
What is 'K-Ratio' A ratio that is used in the performance evaluation of an equity relative to its risk. The ratio examines the consistency of an equity's return over time. The data for the ratio is derived from a value added monthly index (VAMI), which tracks the progress of a $1,000 initial investment in the security being...
T-Account
What is a T-account A T-account is a visual representation of the ledger of a business or individual. It is so named because it looks like the letter T when drawn on a page. The left side of the T-account represents Debits and is typically labeled "left" or "L". The right side represents Credits and is typically labeled "right" or...
Ragnar Frisch
What is 'Ragnar Frisch' A Norwegian economist and joint winner in 1969 of the very first Nobel Prize in Economics, along with Jan Tinbergen, for his research in econometrics. Ragnar Frisch's other areas of research included time series, linear regression analysis, production theory and business cycles. He worked to establish economics as a science, founded the Econometric...
C-Share
What is C-Share and how does it work C-share is a type of mutual fund that allows investors to share in the unrealized gains or losses of the portfolio. The fund's sponsor typically sets aside a certain percentage of the assets to cover expenses, and the rest is available for investment. C-shares are often used by investors who are seeking...
MAD
What is 'MAD' In currencies, this is the abbreviation for the Moroccan Dirham. Explaining 'MAD' The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. Further Reading The performance and impact of stock picks...
BRIC
DefinitionIn economics, BRIC is a grouping acronym that refers to the countries of Brazil, Russia, India and China, which are all deemed to be at a similar stage of newly advanced economic development. It is typically rendered as "the BRICs" or "the BRIC countries" or "the BRIC economies" or alternatively as the "Big Four". A related acronym, BRICS, adds...
Baby Bills
What is 'Baby Bills' A hypothetical nickname for the smaller companies that would have been formed if Microsoft had been broken up for violation of antitrust rules in 2000. Baby Bills stood a real chance of having actually been formed since the U.S. government did call for the company's breakup, but the decision was reversed the following...
Back Charge
What is 'Back Charge' A billing made to collect an expense incurred in a previous billing period. A back charge may be an adjustment due to an error, or it may be to collect an expense that was not billable until a later period due to timing issues. Explaining 'Back Charge' When possible it...
Half Stock
What is 'Half Stock' Stock sold with a par value half of what is considered standard. Half stock can be either common or preferred and, other than the reduced par value, acts as a regular share of stock. The par value of a typical share of stock is $100, meaning that half stock has a par value...