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...
Valuation Analysis
What is a 'Valuation Analysis' A form of fundamental analysis that looks to compare the valuation of one security to another, to a group of securities or within its own historical context. Valuation analysis is done to evaluate the potential merits of an investment or to objectively assess the value of a business or asset. Valuation...
IDC Deposits
What is 'IDC Deposits' IDC Deposits Corp. oversees the MMAX (Money Market Account Extra) program which provides depositors with an efficient way to make large deposits – up to a maximum of $5 million – and secure FDIC insurance. Expanded FDIC coverage is attractive to depositors, particularly when financial markets are experiencing significant volatility and...
Baby Bond
What is 'Baby Bond' Fixed income securities issued in small denominations, generally with a maximum face value of $5,000. The small denominations enhance the attraction of baby bonds to the average retail investor. Explaining 'Baby Bond' Baby bonds may also refer to a series of small denomination bonds with face value ranging from $75...
Obsolescence Risk
What is 'Obsolescence Risk' The risk that a process, product or technology used or produced by a company for profit will become obsolete, and therefore no longer competitive in the marketplace. Obsolescence risk is most significant for technology-based companies or companies with products or services based on technological advantages. Explaining 'Obsolescence Risk' Obsolescence risk is...
What is the Pareto Principle?
Definition The Pareto principle states that, for many events, roughly 80% of the effects come from 20% of the causes. Management consultant Joseph M. Juran suggested the principle and named it after Italian economist Vilfredo Pareto, who noted the 80/20 connection while at the University of Lausanne in 1896. In his first work, Cours d'économie politique, Pareto showed that approximately...