Category: Finance Dictionary

Goods transported out using free on board (FOB), terms.

Compensation paid to members of the armed forces on active duty in a designated combat zone or hazardous duty area that is additional and tax-free. Active duty pay, dislocation allowances, reenlistment bonuses,

When a company buys futures contracts to get the best price in the future.

When manufactured goods are not differentiated. This leads to thin margins and selling by price. The goods are standardized and cheaper.

A law that a property owner can take action to protect their property from damage despite any damage to their neighboring property.

A bank owned by the local community. There is no national presence and are found in the locality that runs them. They are independent institutions.

A firm without shares whose members take on the responsibility when the company fails.

Taking two or more risks and placing them on a scale with quantitative analysis and qualitiative analysis to see which is greater.

The structure of firms and its independent agents for commission payment distribution.

A BID submitted in an AUCTION MARKET process that is placed in direct competition with other bids, meaning it will only be filled if it ranks at, or near, the highest price/lowest

A range or bids used for minimum requirements. Anything outside this range is not taken seriously.

How one product can be priced to get sales volume and stimulate another product. This recovers loss from any drop in price.

A party with many different party that are related in a complicated way.

A bill of lading and other important documents that is needed to get a letter of credit.

An option on an option. AKA split fee option.

Insurance providing for any and all omissions in a policy.

Taking abstract math and making computer simulations. AKA computer simulation.

A testimonial offered to a prospect in an attempt to convince them that a firm has a resolution to their problem.

A terminal area where the plane is connected to the building.

The material safety data sheet that lists things to stay away from because they will harm the employee.