Category: Finance Dictionary

An industry that goes down or stays the same because of demand declines for many reasons. A declining economy, downgrade, upgrade, and technology change can do this.

Reasoning from the general to particular elements for laws on an observed occurance. It is one of the three modes of thinking. AKA deduction.

Any security that exhibits less volatility than the market as a whole (i.e., its BETA is less than 1.0), providing lower, but more stable, returns. Investors often acquire defensive securities during periods

A purchase contract for one to ten years.

A unit for energy demand estimation. It is used in heating or cooling. Indoor temperature is 65 fahrenheit. For one degree increase or decrease from the outside one heat or cool degree

A component added to protect against delays beyond the workers control.

A contract that is not payed for yet by an insured party.

The scale of quality made by W. Edward Deming. The guideposts are used by Japanese companies. 1 is consistency. 2 is adaptation. 3 is no relying on inspections. 4 is reducing vendors.

The process of converting a memberowned mutual organization into a public company through the flotation of COMMON STOCK. Once demutualization occurs, members/ customers are separate and distinct from owners/investors.

Charges on earning based on wasting a resource taken out or reserce. It can be reduced over the years to 0. It is not cash outlay in the books or funds earmarked.

Information on credit reports lenders used to refuse a loan legally. It can lower the score and limit credit availability.

When construction is both designed and built by the same party.

Downgrading effectiveness due to bad packaging or abnormal storage.

An agreement when one party lets another evaluate it for a time. If things go well than formal licensing is offered.

A busines growth of equipment and materials to make a new item.

A reference for words arranged alphabetically. It shows spelling and meaning as well as origin. Refer to thesaurus.

The way a product can have different prices based on the customer, quantity, delivery, and terms. AKA discriminatory pricing or multiple pricing.

When investors buy but do nothing to increase earnings.

A magnetic tape that can hold 35GB using longitudinal recording. It replaced the 4 MM tape that held 4GB.

The RISK of loss arising from exposure to the direction of a reference ASSET or market. An investor holding a LONG POSITION experiences a loss if market prices fall and a gain