Effective Meetings Ideas

unduhan-11The corporate world is about gatherings, and on the off chance that you need to cut a specialty for yourself, you have to figure out how to handle them. A conference can’t go well without arranging and a touch of homework. Look at the article beneath to know the essentials of an effective meeting.

Businesses and firms are replete with business deals and transactions. In fact, this is something that makes a business such an interesting and dynamic entity. Most of these deals, as we all know, are not accomplished without meetings; it could be very primary or a very high-profile one, involving business tycoons in a merger. Regardless of the nature of the meeting, the key is to be impeccably prepared for it. Even though meetings are a part of routine for innumerable professionals, sometimes, a lack of application ruins their effectiveness. Hence, here is an elucidation of some effective meeting guidelines that will surely help you out.

Effective Techniques for Business Meetings

To Meet or Not to Meet
Prioritizing is a fundamental aspect of having meetings. If you can communicate an issue or information through a report, or via an e-mail, you might not even require conducting a meeting. Ask yourself, whether the issue or information to be shared, is worth the meeting. Reserve it for an extremely critical issue. If at all you are skeptical about whether the meeting would be a smooth sail and how to go about it, hire a professional meeting facilitator. He/she would make it certain that the meeting goes well.

Do your Homework
Before you have a meeting, decide upon the aim and the purpose of it. You should be absolutely clear about the things you want to achieve at the end of it. Write down specifically about your goals and have no scope for ambiguity. Make it a point to keep it so crystal clear and simple that even if another person reads it and does the talking, he/she should be able to understand it.

Agendas and All
After you have set goals, you have to set an effective agenda. You cannot just go there and be blank, right? So, it is essential to prepare if you want it to go smoothly; otherwise, you will get stuck thinking about what all are you going to speak about. Having a meeting without an agenda is similar to cooking a dish without knowing the ingredients. Agendas are an inevitable aspect of any kind of business communication. After you have prepared the agenda, make sure that you send it to all those who are going to be a part of the meeting.

The Agenda Reigns Supreme
Once you are in a meeting, focusing on it and planning the agenda are very important. Avoid diverting from the agenda and dabbling into useless topics. It is always better to concentrate on the business at hand; it will save yours and the others’ time, as well.

Take Charge
Once you are at the helm of affairs, there is no way out. You have to stick to your task and ensure that the things go well. It could happen that you go for the meeting, and you have absolutely no idea about what you are going to say, or have no written agenda. But you have to face it; you cannot walk away. Make an agenda while the meeting progresses. Make a note of the important issues and determine the most important of them.

No Mission Impossible
After you take charge, do not let the issue go unresolved. Finish the issue at hand and then proceed to the other. Do not just discuss on an issue and leave it at that; plan a course of action. Till you do that, pursue the task. This is basic business etiquette.

Time is Money
If a crucial issue has to be decided upon, allot a specific time for that. Do not let the decision hang around for ages. Decide upon a time frame for the final decision on an issue, corresponding to its importance. Unnecessary rambling on an inconsequential issue will create boredom and disinterest.

The Good, Bad and the Ugly
Determine upfront who are going to prove valuable for your meeting. Invite only those who can contribute constructively to it. You do not want drowsy, non-contributing people to spoil it. Therefore, ask only those to come, who can help you achieve what you want from that meeting.

Out With It
Finally, give others a chance to speak out their mind. Pass on the gavel – give the participants an opportunity to reflect and express their views.

Finally, a very crucial thing in a meeting is to stay calm and put the point across clearly. For that, it goes without saying that you need to be confident; it is all about confidence and how you present your views. Last but not the least, these tips are useless, unless you are polite and have a pleasant demeanor.

Tips to Effective Communication Skills in Business

Compelling relational abilities in business might be a major term. However, truly, they are not that difficult to create. Only a couple of simple tips to take after and you are set. Perused the accompanying article to locate some helpful data with respect to the same.

Business communication can be written and oral. But, as we have all learned in grade school, it has to be formal. However, grapevine is a very common style of alternate communication, as well. Here are a few tips that one can follow to maintain efficient communication skills in a corporate. While these tips may be commonly known, seldom do people follow them effectively.

Useful Tips

#1
In any business, everything has to be legitimate; it’s a fact. Hence, it is very important to maintain written proof of all communication and correspondence. For instance, in case you are planning on ordering a few sample pieces of a certain commodity, you need to make sure that you send in a written request for it. Often, in the corporate world, simply oral requests work wonders; however, the written words act as an empirical proof. As such, even though the deal was cracked in person orally, it is essential that you send a formal written confirmation of it, as well.

#2
Listening is very important in business. One needs to know the difference between hearing and listening. You need to listen, pay attention, and retain each word and expression that the opposite person may express. Do not be biased while listening; this gravely hinders the conversation. Be attentive and observant. This can be advantageous when you need to remind a person of the interest he had shown earlier or something similar that may work for your benefit. Be a good listener. If you give attention to another’s word, they will respect you for it, hold you in high esteem, and listen to what you have to say with a positive mind.

#3
When you are trying to show a positive response, don’t fret over being direct. It is better to let the person know that you agree before they think that you don’t. However, don’t react till you are completely sure of your answer. If you are undecided about agreeing to certain terms and conditions, then you can avoid giving a response until you are sure. This will not only help you to make better and more informed decisions but also indirectly convey the other person that you cannot make impulsive decisions. Vulnerability can be a major reason for downfall in today’s turbulent times; however, others’ awareness of this vulnerability is more threatening comparatively. So, make sure that you react when you are sure; do not let trivialities allow you to change your mind.

#4
When engaging in written communication with a certain party, stick to unambiguous and definite language. Keep the same policy for conversations, too. Avoid using ambiguous terms, and make sure that you are definite in what you are saying. Also, make sure that you use easy language. Business communication thrives on good interpersonal skills and not good vocabulary. Avoid the use of bombastic words, and stick to simple and everyday terms. This way you don’t intimidate the recipient into having a negative feedback about you. In fact, you make him feel comfortable. This will make you more endearing to him.

#5
Use the industry grapevine to your advantage; every industry has it. It is the source for confidential and timely information. You can plant a few of your own people in the grapevine. This can help you to stay updated with the latest news and whereabouts in the industry in general. More so, you can keep an eye out for possible business, market conditions, and several other details that one cannot control otherwise. Another way to use it to your advantage is to spread the word that you wish to spread. If you wish to let the market believe that you are going for a massive expansion, spread the word through it. It is indeed faster and much more profitable. Another way of having a controlling hand on the grapevine is that in case someone is bothering to spread negative rumors about your business, you can know about it before it spreads too far and wide. You can take preventive and controlling measures in time this way.

Apart from the aforementioned points, there’s a cheat code that can help you to be more perfect than others. All are aware regarding the standards such as Be formal, All telephone conversations should be confirmed via email, etc. These five simple-to-follow tips will help you to gain control over the effectiveness of your business communication.

Ways To Business Communication Skills

In the event that you are working in an organization, you may have unquestionably seen how vital business relational abilities are. They assume an exceptionally huge part in helping representatives speak with each other in a productive way. There are two noteworthy sorts of communication―internal and outside. In interior correspondence, there is an exchange of learning between at least two elements between the organization. Then again; in outer correspondence, the information exchange is done between the workers and outside substances. Both these sorts of correspondence are critical for the smooth running of any business concern.

Public Speaking
As the name suggests, public speaking is when you speak in front of several people, be it in a small process meeting or a big conference. This skill is the most important for executives at higher positions. You should develop your skills regarding how you’re going to present the information in a structured manner.

Email and Report Writing Skills
Writing skills are extremely essential for all employees of the organization, irrespective of the position. Writing emails, reports, and schedules are daily tasks carried out in a company in its everyday running. When using written means of communication, remember to keep it short, formal, and precise.

Negotiation Skills
Negotiation skills are generally used by people who are working in the marketing and communication processes of the company. These skills are required during telecommunication, written communication, or face-to-face communication. Negotiation techniques are also considered one of the most necessary business problem solving skills.

Follow-up Skills
Many working professionals follow an incomplete method of communication. They transfer knowledge from their side, but do not make sure if the receiver has got the message and understood what is necessary. Follow-up of information is what every executive has to do to make the communication cycle complete.

Telephone Skills
Another significant aspect is how we sound when on the telephone. Communication via telephone is quite common in today’s corporate world, and to pass on the message clearly, you need to develop good telephone skills. These oral communication skills need to be excellent, especially by those working in the customer service sector.

Voice Tone and Body Language
During face-to-face workplace communication, you should have a pleasant and humble tone. Do not speak in a tone which would give an authoritative and rude touch to the speech. Along with your tone, you should also be in a good and confident posture. Give others a chance to speak out, and understand what they got to say.

Owing to the significance of business communication skills, many companies have started to arrange for employee training sessions. Along with these techniques at the workplace, you also should develop trust among employees for honest and clear communication. Careful listening is one of the most vital essentials. Clear communication always leads to anticipated results.

Glossary of Business Terms and Definitions

A glossary of business terms furnishes you with meanings of the basic words utilized as a part of the considerable number of parts of business. This business glossary can serve as a prepared guide for business proprietors, administrators understudies and general perusers. Different circles and subjects have been secured which extend from bookkeeping, saving money, tax assessment, promoting, business law, interchanges, financial aspects, fund, protection, global business, administration, showcasing, land and different regions of business.

Glossary of Business Terms and Definitions

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

Business Terms Glossary – A

Abandonment: Abandonment is defined as the voluntary surrender of property which may either be owned or leased, without naming a successor as owner or tenant. The property may, in such a case, be reverted to a person holding prior interest. In cases, where no owner is apparent, the property will thereon be reverted to the state.

ABC analysis: A term used in materials management, ABC analysis is used to defines an inventory categorization technique. It classifies inventory items in terms of importance. This allows the business to place greater emphasis on higher dollar value items or the “A” items than on lesser dollar value items also known as the “Bs”. The “Cs” are considered the least important items and thus receive the least amount of time and attention .

Ability to pay: The explanation for this term, depends upon its field of use, let’s look at the different definitions it holds in the following:

Banking: The ability to pay or the ability to service in the banking terminology refers to the borrower’s ability to meet principal and interest payments out of earnings on the long term basis.

Industrial relations: The ability of an employer, to meet a union’s financial demands from the operating income of the business.

Securities: This refers to the municipal bonds and takes into account the issuer’s present and future ability to generate enough tax revenue to meet its contractual obligations. This is done after taking into account all factors concerned with municipal income and property values.

Taxation: In taxation, ability to pay is a terminology which defines the concept that tax rates should vary with levels of wealth or income.

Above-the-line: A marketing terminology, the term above-the-line refers to marketing expenditure on advertising in media such as press, radio, television, cinema, and the Internet, on which a commission is usually paid to an agency.

Absolute advantage: This is an economic terminology that refers to the advantage of a nation or economic region that is able to produce a good or service more efficiently using the same amount of resources than a second nation or region.

Absorbed account: An account that been combined with related accounts in the preparation of a financial statement and has, therefore, lost its separate identity.

Absorbed business: A business or a company that has been merged into any other.

Absorbed costs: Absorbed costs are the indirect costs associated with the manufacturing of a product.

Abstract: The notes or a concise summary of the transactions affecting the property. This is made by a title examiner based on his examination of the land records. A binder is produced by the title agency from the information in the abstract.

Abusive tax shelter: An abusive tax shelter is a term used to denote a tax shelter where a business organization or an individual illegally claim to avoid paying taxes.

Access bond: Access bond is a type of mortgage that permits borrowers to take out loans against extra capital paid into the account

Accessory goods: These are goods which are required in the day-to-day commercial operations required to conduct a business. They include things like office copiers, automobile wheel balancers, air compressors etc.

Account
Definition #1: A record of the business transactions are referred to as accounts.

Definition #2: An account is a contract written or unwritten arrangement, to purchase and take delivery with payment to be made later.

Accounting cost: In business, accounting cost or cost accounting is the cost of maintaining and checking the business records of a person or organization and the preparation of forms and reports for financial purposes. It is also used to refer to the aggregation of material, labor and overhead costs to allocate them to individual products.

Accounting exposure: A change in an accounting statement entry values of a business as a result of a change in currency exchange rates is known as accounting exposure.

Accounting insolvency: Accounting insolvency occurs when total liabilities exceed total assets in the balance sheet of a business. This, however, does not equate to bankruptcy as the individual or organization may still be able to make monthly payments. In certain situations, the creditors may force the business with accounting insolvency to restructure payments or declare bankruptcy.

Accounts payable: This standard accounting term used across all businesses refers to the liabilities or the bills to be paid as part of the normal course of business. When businesses receive goods or services from a vendor, they usually receive an invoice. Until they pay off the amount specified in the invoice, it is recorded as part of “Accounts Payable” in the balance sheet.

Accounts receivable: Accounts receivable is a business asset and refers to the debts owed to the business.

Acknowledgment: The confirmation by a party to the authorized officer of the court or notary public, when executing a legal document signifying that this is the signature and it is a voluntary act.

Active portfolio strategy: A strategy used for the management of an investment portfolio. It used information and forecasting techniques for making judgments about market movements, instead of relying on automatic adjustments. This leads to better performance of a portfolio than when it is just diversified broadly.

Adaptive firm: An adaptive firm or business organization is one that is able to respond to and address changes in the market, the business environment and the specific industry, in order to better position themselves for long term survival and increased profitability.

Adjustable rate mortgage (ARM): Adjustable rate mortgage is a type of mortgage which is based on a pre-selected index which regulated the periodic fluctuations of the interest rates. This causes payments to go up or down accordingly.

Adjustment interval: On an adjustable rate mortgage, the adjustment interval is the time between changes in the interest rate or monthly payment based on the index.

Administrative expense: The expenses related to the general administrative, managerial, and policy phases of a business are known as the administrative expenses.

Administrator: An administrator or administratrix (female) basically refers to a person appointed by the Court, to settle the estate of a person who dies without a will.

Adventure capital: The capital needed in the earliest stages of starting a venture is called the adventure capital.

Adventure capitalist: An entrepreneur who provides financial support to other business entrepreneurs. Additionally an adventure capitalist may also play an active role in the company’s operations, such as by occupying a seat on the board of directors.

Adverse possession: A real estate terminology, adverse possession is used to denote the process by which the title to a property is acquired without compensation. This is done by holding the property for a specific period in a manner that conflicts with the true owner’s rights. The circumstances may be something like a fee simple title, mineral rights, or other interest in the real property.

Advertising: Advertising is a form of communication that seeks to bring the product or service to the notice of the prospective customers with a motive of an increased consumption.

Advertising opportunity: A product or service that has the potential of generating additional revenue through advertising. This is done either by creating additional awareness of the product, highlighting the differentiating attributes of the product from its competitors or exploring the hidden benefits to a user.

After-tax profit margin: After-tax profit margin is the ratio which is derived by dividing the net income by the net sales.

Agency basis: Agency basis is the means of compensating a broker on the commission established through bids submitted by various brokerage firms.

Agency pass-throughs: Agency pass-through is a type of pass-through security guaranteed by a governmental agency such as the Government National Mortgage Association. The principal and interest payments of these mortgage securities differ from the conventional pass-through securities that are not guaranteed by governmental agencies.

Agreement: A mutual arrangement between two or more parties, either verbally or through a written agreement.

Agreement corporation: An agreement corporation is a federally or state-chartered corporation, which has entered into an agreement or understanding with the Federal’s Board of Governors that it will limit its powers to those specified by the Edge Act.

Agreement of sale: Agreement of sale is a real estate terminology which refers to a written agreement between the seller and purchaser. In the agreement, the purchaser agrees to buy certain real estate and the seller agrees to sell upon terms of the agreement. It is also known as contract of offer and acceptance, contract of sale and earnest money contract.

Allocation-of-income rules: The U.S. tax provisions define how the income and the deductions are to be allocated between the domestic and the foreign source income.

Alpha equation: The equation to determine the measure of selection risk of a mutual fund in the market is also known as the “alpha”.

The alpha equation is:
[ (sum of y) – ((b)(sum of x)) ] / n

where,

n = number of observations (36 months)
b = beta of the fund
x = rate of return for the S&P 500
y = rate of return for the fund
American-style option: An American-style option is an option contract that can be exercised any time before its expiration date. It contrasts with the European-style option, which is executed on the date of the expiration itself.

Amortized loan: A loan for which the principal and interest is paid in a series of equal or nearly equal regular installments.

Annual fund operating expenses: Annual fund operating expenses for investment companies refer to the management fees and “other expenses”. These also include the expenses for providing custodial and accounting services, maintaining shareholder records and providing shareholders with financial statements.

Annual report: The annual report of any publicly held business is the yearly record of its financial condition, which includes a description of the firm’s operations, its balance sheet and income statement. Rules dictate that these reports have to be passed on to all shareholders.

Appraisal
Business: The business definition of appraisal refers to a performance review or performance appraisals, whereby a face-to-face discussion is held in which a employee’s work is discussed, reviewed, and appraised by another, using an agreed and understood framework.

Real Estate: When a licensed real estate appraiser makes an expert judgment or estimate of the quality or value of real estate on a given date it is known as real estate appraisal.

Approved attorney: A title insurance company usually authorizes an approved attorney the authority to handle closings and to render title opinions.

Appurtenance: Anything attached to the land or used with it that passes on to the new owner of the land is known as appurtenance.

Arbitrage pricing theory (APT): Developed by Stephen Ross, the arbitrage pricing theory (APT) is an alternative valuation model which is based purely on arbitrage arguments.

Arbitrage-free option-pricing models: Arbitrage-free option-pricing models are the yield curve option pricing models which essentially include different volatility assumptions along the yield curve.

Arithmetic average (mean) rate of return:The Arithmetic average (mean) rate of return or the arithmetic mean return is calculated by averaging the subperiod returns and dividing it by the number of subperiods.

Asset: Assets are any property owned by the business which includes tangible assets such as cash, receivables, inventory and intangible assets like goodwill.

Asset allocation decision: The decision of how the funds of the business should be distributed among the major classes of assets in which it may be invested is known as asset allocation decision.

Asset classes: Asset classes are defined as the categories of assets, such as bonds,stocks and real estate,

Asset swap: An asset swap is defined as the exchange of tangible assets for intangible assets of a business.

Asset/equity ratio: The asset/equity ratio is the ratio of the total assets of a business, as opposed to the stockholder’s equity.

Assumption of mortgage: An obligation or an assumption undertaken by the purchaser of property to be personally liable for payment of an existing mortgage. Thus the original mortgagor is substituted by the purchaser and is released from further liability in the mortgage instrument.

Attorney in fact: This term refers to an agency relationship, wherein one person holds a power of attorney allowing him to execute legal documents on behalf of another and make binding decisions.

Autarky: A term in international trade for describing a situation in which there is no cross border trade.

Automatic transfer service (ATS) account: Automatic transfer service (ATS) account is a depositor’s savings account, from which funds may be transferred automatically to the same depositor’s checking account, to cover a check written or to maintain a minimum balance.

Average: The arithmetic mean of certain chosen stocks, which are intended to represent the behavior of the market or some component of it, is known as the average.

Average (across-day) measures: An estimate of the price that uses the representative price of a large number of trades.

Average maturity: The average time needed for the maturity of all securities that are held by a mutual fund.

Business Terms Glossary – B

Bad debts: A term related to finance and accounting, bad debts is the portion of receivables that can no longer be collected or the income from the sale that can never be realized. This typically relates to accounts receivable or loans.

Balance sheet: A balance sheet for a business is a statement that lists its total assets and liabilities in an effort to portray its net worth, at a given moment in time.

Balanced mutual fund: Balanced mutual fund or balanced fund is made to suit those investors who are looking for safety, a fixed income and a modest capital appreciation. The mutual fund invests into each asset class, an amount which is usually within a set minimum and maximum. These hybrid funds stick to a relatively fixed mix of stocks and bonds that reflect, either a moderate or a conservative orientation.

Balloon payment mortgage: This is a fixed-rate, non-amortized mortgage with a large final payment where typically, the mortgage matures within a five to seven year term. It is known as a balloon mortgage because on maturity, the borrower pays the final payment, which is much larger than the regular mortgage payment.

Bank card: A plastic card issued by the bank, a bank card allows you access to your bank account. This can be in the form of an ATM card, a debit card or a credit card.

Bank discount basis: The bank discount basis is used by financial institutions as a quoting convention. This is done when quoting prices for fixed-income securities sold at a discount, particularly the U.S. Government issues.

Bank regulation: This is a form of government regulation where banks are subjected to certain rules and guidelines issued by the government.

Banking: Banking is a financial activity where money is kept in savings accounts and issued for loans and credit by government approved banks.

Barbell strategy: A financial term, barbell strategy is a portfolio strategy which is formed when a trader invests in long and short duration bonds, but does not invest in intermediate duration bonds.

Barren money: The money of a business which is lying idle or is unproductive because it is earning no interest.

Board of trustees: In a non-profit organization, the Board of Trustees provide the way for members or associates of the organization to elect or appoint individuals that will supervise the functioning of the organization. These appointed individuals in turn ensure that the core values and purposes of the organization are reflected in the operation process.

Brand: A name, design, symbol or the trademark of the business or the product in question. Branding helps the buyer identify the product or the service which is distinguished from its competitors.

Brand equity: The added value that exceeds just the functional benefits of a product or service associated with a brand name is known as brand equity.

Bulldog market: A bulldog market is slang for the U.K. stock market.

Business administration: The term business administration refers to the universal process for the management of business operations and making or implementing of major decisions.

Business analyst: The term is used to describe a person who is responsible for analyzing the business needs of prospective clients and helps identify business problems and propose solutions.

Business bank account: A business bank account is essential when starting off with any business be it a limited company, partnership or any other key business structure. Banks who open such an account provide a host of services like transactions, business loans and other specific needs of a business.

Business bankruptcy: The legally declared inability or impairment of a business to pay off its creditors and the business debts is known as business bankruptcy.

Business brokers: A business broker is a term used to define people or firms who/which act as intermediaries and or assist sellers and buyers of small businesses. They are also known as business transfer agents or intermediaries.

Business bureau: Business bureaus or better business bureaus are non-profit, private organizations that work to protect consumers against fraudulent and illegal business practices by answering and investigating consumer complaints.

Business development: Business development comprises a number of techniques and responsibilities which aim at gaining new customers, and at penetrating existing markets after having done an assessment of the target markets.

Business ethics: A form of applied ethics, business ethics examines ethical principles and moral problems that arise in a business environment. This in turn applies to all aspects of business and individual conduct in an organization or business as a whole.

Business expenses: The expenses of a business is the total cost incurred in carrying out a trade or a business.

Business finance: In the case of a company or a business, corporate finance or business financing is the task of providing the funds for the corporation’s activities. This is done keeping in mind the balance of the risk and profitability of a business.

Business grants: Business grants are a form of financial assistance provided to entrepreneurs who want to start new companies or businesses. There are many federal programs and local state government programs, which provide the assistance needed for seeding new businesses.

Business hierarchy: Business or Organizational hierarchy refers to the importance of roles, responsibilities or objectives in an organization. For example, the chief executive officer would be right on top of a business hierarchy.

Business plan: A business plan is a written document describing the nature of the business, the financial background and the sales and marketing strategy of the business. It also contains a projected profit and loss statement.

Business Terms Glossary – C

Capitalization: The long-term financing amounts and terms used by a firm which includes within its folds, things like common stock, preferred stock, retained earnings and long-term debt.

Cash commodity: The actual physical commodity or asset that is purchased or sold and the payment rendered immediately is known as a cash commodity.

Channels of distribution: The channel used in the transfer of goods or merchandise from a manufacturer to the end user.

Chief operating officer: A chief operating officer or chief operations officer (COO) is a corporate executive or senior officer who is responsible for managing the day-to-day activities of the corporation or business. The COO is also one of the highest-ranking members of an organization’s senior management. He is responsible for monitoring the daily operations of the business and reporting to the board of directors and the top executive officers.

Closed-end fund: Close-end funds or close-ended funds is a collective investment scheme, where the shares can be acquired by buying shares on a secondary market from a broker, market maker or other investors. This differs from an open-ended fund where all transactions eventually involve the fund company creating new shares on the fly, in exchange for either cash or securities or through redeeming shares for cash or securities.

Closing costs: When there is a property ownership transfer, the fees and expenses, over and above the price of the property, incurred by the buyer and/or the seller are known as the closing costs. These settlement costs include title searches, lawyer’s fees, survey charges and deed filing fees.

Closing sales: A sale that reduces or eliminates the risk that the seller may have through holding a greater number of shares or a longer term stock contract.

Co-branding: Co-branding is an arrangement or agreement involving two or more companies that seek to associate a single product or service with more than one brand name. This is when a product is associated with someone other than the principal producer. The association may involve the use of various logos, color schemes, or brand identifiers to a specific product that is designated for this purpose.

Cold Call: A cold call refers to a telephone call or visit made to someone who is not expecting contact. This is often done in order to sell a product or service.

Commercial banks: A financial intermediary, a commercial bank provides checking accounts, savings accounts, and money market accounts and accepts time controlled deposits.

Company-specific risk: Unlike a systemic risk which comes from the economy, a company-specific risk is associated with the company’s operations and business environment.

Competitive analysis: Competitive analysis is a statement of the business strategy and its relation to the competition. It seeks to determine the strengths and weaknesses of the competitors within one’s market, so as to develop strategies that will provide the business a distinct advantage, help develop the barriers in order to prevent competition from entering one’s market, and locate any weaknesses that can be exploited within its product development cycle.

Concentrated target marketing: Concentrated target marketing is the process of marketing targeted at a specific or single consumer market segment.

Controlled circulation: The distribution of a newspaper or magazine to a set of an exclusively selected target audience.

Copyright: Copyright applies to a form of intellectual property that gives the author of an original work, idea or information, an exclusive right for a certain time period in relation to that work. A copyright includes its publication, distribution and adaptation, after the work is said to enter the public domain.

Corporation: A product of corporate law, corporations are legal entities separate from the persons who own them or the persons who manage or operate one. There are many different corporation types that can be chosen based on the needs of the business.

Costs: In business, costs refer to the value of money that has been utilized to produce a commodity, a service or a business asset, and hence, is not available for use anymore for example, the cost of acquisition.

Cross hedging: Cross hedging is the hedging of a cash commodity or security with a Futures Contract where the underlying commodity is similar but not identical to the commodity or security being hedged. It is used in a scenario when no future is available on the commodity being hedged and a future with a high degree of price correlation can be substituted.

Current assets: A balance sheet item of a business which is equivalent of the sum of cash and cash equivalents, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that could be converted to cash in less than one year.

Current liabilities: Liabilities of a business are the obligations that are expected to be paid or performed within one year or within the normal operating cycle of a business or whichever is longer. They are listed on the company’s balance sheet and include items such as accounts payable, taxes payable and salaries payable.

Business Terms Glossary – D

Debenture bond: A Debenture bond is an unsecured bond whose holder acts as a general creditor and can thereon issue a claim on all the assets of the issuer, which are not pledged to secure other debts.

Debt market: It refers to a market where debt instruments are traded.

Decile rank: Decile ranking is a comparative rating of performance of similar things such as quality of investments or performance of mutual funds . The rankings are usually done on a scale of 1 to 10 so for example a decile rank of 1 states that the mutual fund was in the top 10 % funds and a rank of 4 indicates it was in the top 40% of the mutual funds. So each number on the ranking scale corresponds to an increment of 10 percentage points.

Decision maker: Decision maker in a business organization refers to a person who selects a course of action from the several alternatives, based on certain decision-making processes.

Dedicated portfolio: Dedicated portfolio is a passive form of portfolio management that involves corresponding future cash inflow with future liabilities. The process of dedicating a portfolio reduces the level of default interest rate risk to which a portfolio is exposed.

Deferred compensation: An arrangement in which a portion of an employee’s compensation or income is paid at a post the date on which the income is actually earned. This is done for availing the benefit of deferral of taxes and include compensations such as pensions, retirement plans, and stock options.

Deferred tax liability: A tax liability of a company which it has to pay in the future and not at the current point of time. It is usually the result of the difference in a company’s balance sheet which occurs as a result of the differences between accounting practices and tax regulations.

Deficiency judgment: If the funds from a foreclosure sale of a debtor or borrower is insufficient to pay the mortgage in full it is known as deficiency judgment.

Delivery notice: A delivery notice is a notification which is issued from the seller to the buyer confirming the delivery of the goods on a specified date.

Delivery options: The features added to futures contracts are known as delivery options. They in turn permit the short position to determine the combination of location, quantity, timing and quality of the underlying commodity stated in the delivery notice.

Demand letter: It is a letter stating a legal claim which makes a demand for performance of some obligation, post the recipient’s alleged breach of contract, or for a legal wrong.

Derivative instruments: Derivative instruments or derivatives are financial instruments that are derived from some other asset, index, event, value or condition. These are known as the underlying asset. The derivative traders enter into an agreement to exchange cash or assets over time based conditions on the underlying asset rather than exchanging these underlying assets itself.

Derivative security: Derivative security is a form of financial security such as an option whose value is derived in part from the value and the characteristics of the underlying asset.

Deterministic models: A mathematical model with set parametric quantities and variables which are not subject to random fluctuations.

Differential disclosure: Differential disclosure is the practice of reporting conflicting or markedly different information in official corporate statements including annual and quarterly reports.

Direct marketing: Direct marketing is a sales method by which advertisers approach target customers directly with products or services using direct marketing tools such as telephone sales, direct mail marketing, catalogs,brochures, leaflets and coupons.

Disability benefits: These benefits refer to the money available from private disability insurance companies or social security agencies to individuals who meet established medical guidelines for disability.

Disclaimer of opinion: When the auditor disclaims any opinion regarding the business’s financial condition due to an inability to gather sufficient relevant facts, it is known as the disclaimer of opinion.

Discretionary account: An investor account that allows the broker to buy and sell securities without the client’s consent. The client in turn must sign a discretionary disclosure with the broker as proof of his consent.

Diversifiable risk: The risk that is specific to a particular security so that its impact on a diversified portfolio is limited is known as diversifiable risk.

Dividends per share: It is known as the sum of declared dividends for every ordinary share issued and is derived by the total dividends paid out over an entire year divided by the number of outstanding ordinary shares issued.

Documentary stamps: A form of tax in some states requires a revenue stamp to be affixed to documents which are used for transferring title to real property. These revenue stamps are known as the documentary stamps.

Domestic market: The systems of trading securities of entities located within a nation and which forms part of the nation’s markets is known as the domestic market.

Dual agency: A real estate agent or broker who represents both seller and the buyer of a property in a real estate transaction.

Dual-currency issues: A euro-bond that makes coupon payments or payments of interest in one currency, but pays the principal in a different currency.

Due-on-sale clause: A clause in a promissory note or a loan that specifies that the full balance may be called due upon by the lender in the event of a sale or transfer of ownership of the property used to secure the note.

Dynamic asset allocation: Dynamic asset allocation also known as guaranteed linked notes, is an investment strategy where the investor is exposed to a range of investments, without putting the principal at risk.

Dynamic hedging: Used widely by derivative dealers, dynamic hedging involves a portfolio investment technique through which a hedge is adjusted as per the changes in the value and position of the underlying assets, options, futures or forward contract.

Business Terms Glossary – E

Earnest money: In real estate, earnest money is paid as an advance by the purchaser to the seller at the time of the sales contract. This “good faith” money paid is thereon applied to the purchase price or is forfeited in the event of the cancellation of the contract.

Earnings: This is the amount of profit or the after tax net income that a business produces over a given period of time.

Earnings surprises: When the net income of a company, as demonstrated by the quarterly or yearly report, demonstrates a fluctuation (above or below) in the analyst’s earnings estimates, it is known as earning surprises.

Easement: Easement provides a right to use a property, that is in possession of another person, for a stated purpose. For example when telephone companies are given permission to run lines on or under a private property it is known as easement.

Economic surplus: The economic surplus of a business is when the total value of the assets of a company exceed its liabilities.

Effective convexity: The effective convexity of a bond is calculated using cash flows that change with yields.

Efficient portfolio: Efficient or optimal portfolio provides the greatest expected rate of return at a given amount of risk.

Electronic fund transfer systems (EFTS): The electronic funds transfer system provides for electronic financial transactions and transfer of payments and collections without the involvement of any paper money directly changing hands.

Endowment funds: Endowment funds refer to the investment funds set up by an institution. For these funds regular withdrawals from the invested capital are used for specified purposes or other ongoing projects.

Enterprise: An enterprise or business enterprise is a commercial undertaking which provides goods and services involving financial, commercial and industrial aspects.

Entrepreneurship: Entrepreneurship is a process by which entrepreneurs assemble resources which include innovations, finance and business acumen, in an effort to transform innovations into economic goods.

Equilibrium market price of risk: The Equilibrium market price of risk is the slope of the capital market line (CML) which is the expected return offered to compensate for a perceived level of risk. In the slope each point on the line is a balanced market condition or equilibrium.

Equity
Business: On a company’s balance sheet, equity also known as shareholder’s equity, is the amount of the funds contributed by the stockholders, plus the retained earnings or losses.

Real Estate: The difference between the property’s current market value as opposed to the amount still owed by owner on a mortgage.

Investment: Equity or stocks refer to the principal asset class and are thereon used in asset allocation planning.

Equity cap: The government usually places an equity cap or the maximum amount of equity on a company. This cap regulates the amount of equity a foreign national or company may possess in domestic companies or in certain industries.

Equity claim: An Equity claim also known as residual claim, is the share of earnings that can be claimed once all debts have been repaid.

Equity collar: The simultaneous sale of an equity cap along with the purchase of an equity floor.

Equity floor: An equity floor is an agreement in which a party agrees to pay the other at specific time periods if the stock market benchmark falls below a preset level.

Equity market: Equity or stock market are the vital part of the market economy of any country and basically, refers to a market where the issuing and trading of shares of companies are done, either through exchanges or over-the-counter markets.

Equity options: An option in which the common stock of a company forms the underlier , and whoever holds it has the right to buy or sell its stock, by a specific date, at a specified price.

Equity partnership: An arrangement or a limited partnership for providing seed or start up capital to businesses.

Equity swap: An equity swap is a financial derivative contract between two counter-parties who agree to exchange a set of future cash flows at certain preset dates in the future.

Equity-linked policies: A type of variable life insurance policy, equity linked policies are whole life insurance policies in which a part or all the premium is apportioned to a separate account, which is invested in common stock.

Evaluation period: The specific time period in which the performance of a financial or investment analyst is measured against some set standards. This is done in order to periodically to assess the effectiveness of a money manager’s work for the firm.

Execution costs: The execution costs is the difference between the consummation price of a security trade and the price that would have existed in the absence of it. This can be further divided into market timing costs and market impact costs.

Expected value: For business decisions where an element of uncertainty is involved, the concept of expected value which uses the probabilities as weights to provide a weighted average is a rational means for selecting the best course of action.

External efficiency: External efficiency is a situation where the prices of all securities reflect all information available in the market.

External market: External markets are the trading place for securities that are issued outside the jurisdiction of a country. They are offered to investors in multiple countries at the same time.

Business Terms Glossary – F

Face value: The value printed on the face of a bond which indicates the nominal or the stated amount of the security.

Fair price: Fair price or theoretical futures price is the equilibrium price set for futures contracts.

Feasible portfolio: A feasible portfolio is a financial portfolio constructed with a given set of investments and assets.

Federal funds market: The market in which banks which are temporarily short of cash can borrow or lend the required reserves, from banks that have surplus reserves.

Financial analysts: A financial analyst is a person who does financial analysis by gathering information, assembling spreadsheets, writing reports, and reviewing all non-legal pertinent information in an effort to examine the feasibility of prospective deals.

Financial leverage ratios: The ratio of the debt owed by a business to the equity held by the shareholders of the organization is known as the financial leverage ratios.

First notice day: It is the first day on which a notice for a delivery against a contract by the seller of a futures contract.

First-in-first-out (FIFO): First-in first-out is an asset management terminology, which explains the valuation method by which assets which are produced or acquired first are disposed off or sold earlier than the others.

Fixed-charge coverage ratio: A ratio which is derived by dividing the profits before the interest is paid, along with the income taxes by the interest paid on long-term debts such as bonds.

Fixed-income equivalent: Convertibles like bonds or stock which are traded like fixed income investments, because the market price of the common stock they convert to has fallen so low as to render the conversion feature valueless.

Fixed-income instruments: These are security instruments such as bonds, treasury bills and preferred stock which generate a fixed amount of income.

Fixed-income market: A market where fixed income securities such as bonds and preferred stocks are traded.

Floor broker: A member of the stock exchange who is responsible for executing the orders on the floor on behalf of others who do not have the access to the share trading area.

Floor trader: A member of the stock and exchange commodities market, a floor trader executes the orders on the trading floor for his account.

Foreclosure: Foreclosure is a legal proceedings through which an owner’s right over a property is terminated by default or through a public auction where the proceeds are used to clear off a mortgage debt.

Foreign exchange transactions: Foreign exchange transactions refer to the exchange and sale of the currencies at the global exchange rate.

Foreign market: Foreign or foreign exchange market is a part of the nation’s internal market where the mechanisms for trading securities of entities domiciled outside that nation is set into place.

Forward contract: A transaction which takes place in a cash market where the seller agrees to provide a cash commodity to a buyer, at a future date.

Franchising: Franchising is a business arrangement by which a franchiser grants the operator of the business to use various of its assets (tangible and intangible) like its products, techniques, and trademarks for a percentage of gross monthly sales and a royalty fee.

Fund Family: A bouquet of funds offered by a mutual fund company where each fund corresponds to a specific objective. The investors also have the flexibility to move assets between different funds of a fund family at little or no additional cost, and receive a single statement describing their holdings in the funds of the fund family.

Fundamental beta: A statistical model, fundamental beta used in the prediction of the risk of the security using market related and other financial data.

Funding ratio: The funding ratio is derived by dividing the assets of a pension plan with the liabilities.

Funding risk: The impact or the risk associated with high funding costs or lack of availability of funds on a project’s cash flow is known as funding risk.

Futures contract: A standardized contract that is traded at the exchange and requires delivery of a bond, currency, or commodity, at a specified price, on a specified future date, is known as a futures contract or futures trading.

Futures price: In a futures contract, futures price is the price set by two participants who agree to transact at the settlement date.

Business Terms Glossary – G

General warranty deed: A general warranty deed is a title held by the grantor, or the seller guarantees that he holds the clear title to a piece of real estate and has therefore, a right to sell it.

Gross domestic product (GDP): The total market value of the goods and services produced in a country in a specified period is known as gross domestic product.

Ground lease: A ground lease is defined as a type of lease in which only the land is rented.

Growth rates: In business, growth rates refer to the increment of a specific variable or financial characteristic within a specific period and context.

Guaranteed loan: A loan that is guaranteed as to repayment of principal and interest by a federal agency.

Business Terms Glossary – H

Hard cash: Payment of goods and services with money as opposed to a credit or check payment.

Hard goods: Products that are utilized for a number of years instead of being disposed off quickly, for example, household appliances and other durable goods are known as hard goods.

Hard sell: Hard selling in advertising refers to the transmission of direct and overt sales messages to the prospective buyers. This is opposed to the soft selling advertising campaign which seeks to pass on subtle and casual sales messages.

Hedging: Hedging is a risk management strategy where a securities transaction is made in such a way that the risk of the existing investment position is mitigated to a certain extent.

Hemline theory: An informal theory which likens the fluctuations in the stock to the hemline of a woman’s dress.

Hidden asset or reserve: An accounting convention which seeks to deliberately understate the value of the asset or the net worth on the balance sheet.

Hidden inflation: A hidden inflation is a price increase where older goods or one that is of a poorer quality, is offered at the original price.

Hidden tax: These are taxes which are hidden from the taxpayer and instead result in raising the price of goods or lowering the worker’s salaries.

High-growth ventures: A business venture which is designed in such a way that there is a rapid growth rate and a substantial profit increase.

Holding company: A holding company is one which owns the shares of some other company, thus eliminating a measure of risk and also controlling the ownership and management of the companies whose shares they own.

Holding period: The holding period is the percentage appreciation in the value of the portfolio or an asset during the period in which it was held.

Home loan: Home loan or an home equity loan is a loan secured by a primary residence.

Home mortgage interest: An interest on the home mortgage secured by the taxpayer’s personal residence.

Homeowners insurance policy: An insurance policy that protects the homeowners from casualties or calamities that might affect the property such as fire, lightning or hail.

Horizontal merger: A merger between two companies with the same product lines or services.

Horizontal specialization: A management process of an organization which is divided between one or more subordinates.

Housing affordability index: Housing affordability index is the financial ability of the consumers to buy a house. This index was complied by the National Association of Realtors (NAR) to gauge the financial position of the buyers at the time of buying a house.

Housing finance agency: A governmental organization either at the state or the national level, which is responsible for providing housing solutions.

Human resources management (HRM): Human resource management is the strategic management of the people who work in an organization. The functions include recruitment and management of people along with the emphasis on strategic integration, employee commitment and workforce flexibility.

Hyperinflation: Hyperinflation denotes the extremely high inflation in a country and is characterized by the escalation of the price of the goods and the decrease in the value of a currency.

Business Terms Glossary – I

Income approach: The income approach is used for deriving the valuations of commercial and industrial properties. It is based on an estimate of net income derived from the running of commercial property and then selecting a capitalization rate from market indications of similar properties. This is then used to convert that income to an estimate of present worth for the property.

Incubator: Incubators or business incubators are the programs that are designed for providing support resources and services for start up business ventures and entrepreneurship. Incubators are developed and managed by incubator management and deliver their services, in their organizational structure, and in the types of clients they serve. The motive being that with the incubation management start-up company will stay in business for the long term.

Indemnity: Indemnity is a concept wherein a person provides a compensation for the loss suffered by another in the form of cash payments, repairs, replacement, and reinstatement.

Indicated dividend: The dividend paid on the share of stock over the period of a year provided the dividend amount is the same as the previous payment or the most recent dividend payment.

Inflation risk: Inflation or purchasing power risk, is the depreciation in the value of the investments due to the changes in the purchasing power as the result of inflation.

Information coefficient (IC): The relation between the actual stock returns as opposed to the predicted returns.

Information costs: The transaction costs incurred in assessing the merits of the required goods and services.

Information-motivated trades: An information motivated trade is one that the investor believes he possesses some precise information about and which is not currently reflected in the stocks price.

Innovation: Innovation is the process of evolution and introduction of a new idea, products, services or organizational processes. It can also be defined as the application of an invention, resulting from studies and experimentation for the creation of something new.

Institutional investors: Institutional investors refer to organizations who invest large amounts of money in other companies, thus acting as highly specialized investors on behalf of others.

Institutionalization: The improvisation performed by institutional investors on the financial markets as opposed to the individual investors.

Insured bond: Insured bonds are insured by a third party for interest and principal payments. These are usually municipal bonds and have a higher credit rating than the uninsured bonds.

Insured plans: Insured plans are defined benefit pension plans which are guaranteed by life insurance products.

Interim financing: A loan where the borrower is not able to, or willing to arrange for long term or permanent financing. These extend even to the real estate financing and loans and are usually arranged for a maximum period of three years.

Internal market: A market where securities are traded within the national boundaries. These include the foreign as well as the domestic markets.

International marketing: Marketing that is carried out across the borders of a nation and by companies overseas, is known as international marketing.

Inventory: The list of merchandise, raw materials and goods of a company.

Investment analysts: Investment analysts examine the performance of companies, market sectors and the economy, so as to arrive at an estimate of the financial values and guide the client to take the best investment recourse.

Investment banking: A financial institution which buys and sells securities, manages and advises corporate mergers, raises capital and undertakes other financial services such as foreign exchange, commodity trading and exchange of securities.

Investment income: The income obtained from dividends, capital gains and interest payments which is derived from the sale of a security and any other profit made through an investment vehicle of any kind.

Investment management: The professional management and organization of securities such as, shares, bonds and assets of a business in order to derive certain benefits for the investors.

Investment trust: These are closed end funds mainly comprising public limited companies.

Investor: A person who makes an investment in securities for acquiring certain financial gains.

Business Terms Glossary – J

Joint clearing members: Firms that are clear on more than one exchange are termed as joint clearing members.

Joint ownership agreement: An agreement between owners or occupants of a business defining their rights, ownership, monetary obligations and responsibilities.

Joint tenants: In real estate, joint tenancy is a special form of ownership by two or more persons of the same property and the individuals known as the joint tenants, share equal ownership of the property and have the equal, undivided right to keep or dispose of the property.

Judgment by confession: A judgment entered after a written confession by the debtor, without incurring the cost of ordinary legal proceedings, is known as judgment by confession or confession of judgment.

Junior mortgage: A mortgage which is subordinate to a prior or senior mortgage is frequently called a second mortgage loan or a junior mortgage. However, this could also be a third or fourth mortgage, etc. In the event of the foreclosure of a mortgage, the senior mortgage will be paid first.

Business Terms Glossary – L

Ladder strategy: A strategy applied specifically for construction of a bond portfolio wherein equal amounts are invested at each maturity within a specific range so as to offset the interest rate risk.

Last trading day: The final day of trading of a futures or options contract where the outstanding contracts have to be settled either by delivery of underlying physical commodities or by agreement for monetary settlement. The settlement mode depends on the futures contract specifications.

Last-in-first-out (LIFO): The last- in-first-out method is an inventory valuation system wherein the assets that are procured last are the ones that are sold out first.

Leasehold estate: A leasehold estate is a ownership interest in a property, which is held by the lessee or the tenant for a definite, limited period of time which may either be a week, a year or a term of years.

Legal rate of interest: The state law usually sets up the maximum interest that can be charged on loans. An excess of this amount is considered as usury and results in stiff fines and forfeiture of interest or principal.

Lending institution: A public or private financial institution that offers loans to business organizations or individuals at a certain interest rate. Lending institutions include loan associations, commercial finance companies, commercial banks or other authorized lenders.

Leveraged buy-out (LBO): When the cost of acquisition of a business is met through borrowed money it is known as a leveraged buy-out. In this case usually the assets of the target company is used as collateral for the acquisition loans.

Liability: The legal debts of a business which has been acquired through the course of its operations is known as liability. These debts or business liabilities are settled over time by benefits which include money, goods or services.

Liability insurance: Liability insurance is an insurance policy which protects a business organization or an individual against any legal liability that the insurer might face if sued for malpractice, injury or negligence.

Life estate: A real estate or property owned by a person throughout his life. The claim to this real property however ceases after the death of the “life tenant”.

Limit order book: A record of all the unexecuted orders for a specified price broker to buy a specified quantity of securities at or below a specified price, or to sell it at or above the price.

Limit price: The price limit set for a limit order by an investor.

Liquidation: The process of winding up or dissolution of a business and the subsequent redistribution of its assets and property is known as liquidation.

Liquidation rights: The rights that the stockholders and security owners of a liquidated firm hold in the event of a liquidation. The ownership rights of the assets are then distributed among these stakeholders.

Listed stocks: The stocks that are traded in the country’s main stock markets.

Loan application: An application or a document for a loan that needs to be provided to determine if the loan applicant is eligible for the loan.

Loan-to-value: Loan-to-value (LTV) is one of the key risk assessment features examined by financial institutions before approving a mortgage amount. It is derived by dividing the mortgage amount by the appraised value of the property.

Local expectations theory: A theory that suggests that the returns on bonds that mature at different times will be the same over a short-term investment horizon.

Long hedge: This is a hedging strategy used by business manufacturers who want to lock in the price of a commodity, to be purchased some time in the future so as to secure an advantage over the possible price increases.

Long term assets: The long term assets are ones that are expected to generate an income over a long period of time and are the value of the balance sheet assets such as the company’s equipment, property and any other assets.

Business Terms Glossary – M

Magic of diversification: The effective risk reduction of a portfolio that is obtained without the expected returns being reduced, through the combination of assets with negative covariances.

Management/Closely held shares: The Securities and Exchange Commission define the management or closely held shares as “the percentage of shares held by persons closely related to a company”.

Margin requirement (options): An uncovered individual or institution selling an option is required to deposit and maintain a certain amount of cash, so that the daily position valuation is covered and predictable intra-day price changes are addressed. This is known as margin requirement.

Mark-to-Market: Mark-to-market refers to the fair value accounting standards of assigning a value to a financial instrument such as a security, account or portfolio. This is based on the current market valuation for the instrument or similar instruments.

Market cycle: The periodic fluctuations of the market index, S&P 500 where the market cycles are defined as the period between the two latest highs and the lows. This demonstrates the net performance of a fund through a fluctuating up and down market.

Market penetration pricing strategy: The marketing strategy of pricing a product or service competitively or giving consumer incentives in order to increase its market share or enter a competitive market.

Market portfolio: The weighted sum of the total number of assets in the market, with weights in the proportions to which they exist in the market.

Market sectors: The sectionalization of a market based on certain characteristics. For example, a market for cars could be divided into private buyers, small fleet buyers and second hand car buyers. The sellers can target the audience based on the market sectors.

Market segmentation theory: Market segmentation theory or segmented market theories pertains to interest rates. This theory states that there is no necessary relationship between long and short-term interest rates, and so the yield curve is shaped according to the supply and demand of securities within each maturity length.

Market timer: Market timers are people who are able to make investment decisions of financial assets by predicting the market price movements. The prediction may be based on the analysis of the market or economic conditions.

Market value: Market value or fair market value is the trading price of an asset.

Marketable title: Ownership of a real estate property and its ready transferability due to the freedom of claims from third parties.

Marketing: Marketing is a business process wherein goods and services are promoted, distributed and sold using communication based processes such as market research and advertising.

Marketplace price efficiency: The level of available marketplace information reflected by the asset prices. It is also estimated as the problems faced by active management in earning a greater return than what passive management would, after and the transactions costs associated with implementing a strategy are taken into account and the strategy risks are adjusted .

Matador market: The internal financial market of Spain.

Maturity phase: When the earnings of a company grow at the rate of the general economy, at a specific stage of the organization’s development, it is known as the maturity phase.

Maximum price fluctuation: The maximum price changes of a futures contract price during one trading session. This is determined by exchange rules in the contract specification.

Mean-variance efficient portfolio: Mean-variance efficient portfolio also known as the Markowitz efficient portfolio, is one wherewith the given amount of risk, the highest expected returns are realized.

Member bank: Banking institutions that are part of the U.S. Federal Reserve System or a central banking system.

Minimum price fluctuation: The minimum possible increase in the price movement when buying or selling of a contract.

MLM: MLM or multi-level marketing is a marketing and sales technique, by which salespeople not only receive a commission on the sales they generate, but also a smaller commission on the sales from each person they can convince to become a salesperson.

Money center banks: Large financial organizations and banks which borrow from and lend to other banks, corporations and governmental organizations rather than consumers. These money center banks raise most of the funds from the domestic and the international markets rather than relying on the deposits of individual account holders.

Money manager: A money manager or an investment manager refers to a professional or a bank in charge of managing the securities portfolio of an individual or institutional investor.

Money market: A market where short term debt instruments with a maturity of one year or less are traded. These instruments include treasury bills, bankers acceptances, municipal notes and other securities.

Money market demand account: Money market demand account is an account that calculates and pays interest based on the short-term interest rates.

Mortgage: A mortgage is a security for a debt and is the transfer of an interest in property from the owner to a mortgage lender for a loan of money.

Mortgage rate: The rate of interest charged on a mortgage loan by the mortgage lender.

Multiperiod immunization: A bond portfolio strategy in which the portfolio is created in such a way that it ensures that liabilities can be met regardless of interest rate changes.

Business Terms Glossary – N

Naive diversification: An investment strategy whereby the investor invests in a range of assets so that the variations in the returns of the investment portfolio is lowered.

Naked strategies: Naked strategies is when you write an option without having the ownership of an underlying asset.

National market system: The trading system where stock and bond prices are listed on the NYSE and the regional exchanges simultaneously for reporting transactions and quotations from all qualified market makers. They link all the major stock markets in U.S. In a bid to foster competition among them. The National market system is governed by section 11A of the Securities Exchange Act of 1934.

Nearby futures contract: Of the several futures contracts, the one with the closest day on which payment has to be made is known as the nearby futures contract.

Negotiation: Negotiation is a conversation between two or more people with the intention of resolving a dispute or arriving at a mutual agreement for undertaking a course of action.

Negotiation dispute: Denotes a disagreement on some issues in a bargaining table or a negotiation between the partied involved in it.

Net effective income: The gross income of a potential borrower after the taxes have been deducted. This is a statistic commonly used by a lender to find out if the borrower qualifies for a loan.

Net financing cost: Net financing cost or the cost of carry, is the difference between the cost of buying an asset and its cash yield.

Net income: Net income is the total income or earnings earned by a business and is calculated by subtracting the costs incurred by a business from its total revenues.

Net operating margin: The net operating margin is calculated by dividing the operating income by the net sales in a bid to find out the profitability of a business.

Net worth: Net worth or the net liabilities of a business are calculated by subtracting the total outside liabilities from the total assets.

Next futures contract: The futures contract which is settled after the first contract with the closest settlement date or the nearby futures contract is settled.

No load mutual fund: A no-load mutual fund or a no-load fund is an investment fund where the shares are sold without charging any sales charge or commission.

Nominal price: The price of a product or a security where there has been no adjustment for inflation.

Non assumption clause: The non assumption clause which is stated in the mortgage contract disallows the transfer of the mortgage to another borrower, without the prior approval or permission of the lender.

Non-cumulative preferred stock: The preferred stocks where there is no accrual for the unpaid dividend payments.

Normal portfolio: Normal portfolio is a benchmark portfolio which is tailor made by the securities chosen and weighted by a manager.

Notary public: A notary public or a public notary is a law officer constituted to serve the public in non-contentious matters concerned with deeds, powers-of-attorney, estates, foreign and international business. The main functions of a registered notary are to take affidavits and statutory declarations, administer oaths and affirmations, witness and authenticate the execution of certain classes of documents, take acknowledge deeds and other conveyances etc.

Notice day: The day that the futures traders are notified of their need to fulfill the terms of their contracts.

Business Terms Glossary – O

Objective: Business objectives are the aims set by the business. These measurable targets are the foundation upon which the strategic policies of the business are based.

Official statement: The legal prospectus of a municipal bond prepared by the state or local government. The official statement is a disclosure of the finances surrounding the issue of the municipal bond and acts as an indication of how the investor will be repaid.

Omnibus account: An account carried on by a futures commission merchant or broker who does the transactions for multiple account holders in a single account.

Open contracts: Open contracts are ones that are bought or sold without the subsequent sale or purchase being completed, or without taking actual delivery of the physical commodity or security.

Open-end fund: A fund where there is no limitation on the number of shares being issued.

Opening price: The price range at which the transactions are done or the first bids and offers are made at the stock market.

Opening purchase: When an investor intends to create a long position in a series of options provided, the transactions made to this effect are known as an opening purchase.

Opening sale: A transaction where the intention is to create a short position in a set of options.

Optimal portfolio: An optimal portfolio is an ideal investment portfolio that sets the risks and returns combination based on the investor’s utility function.

Option contract: A contract that gives the authority to buy or sell stock, index, debt, currencies etc for a specific price within a period of time.

Option price: The value of the each share that is paid by the option buyer to the seller.

Option seller: The option sellers or writers are ones with the authority to trade the options and securities in future.

Original margin: A margin needed to compensate a specific market commitment or position.

Over-the-counter market (OTC): A decentralized securities market where the brokers and traders carry on the trading over the telephone or electronic network, instead an actual trading floor.

Overbought\Oversold indicator: The Overbought/Oversold Indicator is a technical analysis tool that uses a moving average of the difference between the advancing and declining issues to define when the prices moved too far and in which direction. So if the market is overbought, the technical analyst will sell, and if the market is considered oversold, he will buy.

Overdraft checking account: A line of credit checking account that allows the account holder to write checks for more than the balance in the account.

Overfunded pension plan: A pension plan where the assets exceeds its liabilities, that is, the projected benefits of the plan exceed the obligations associated with it.

Overlay strategy: When futures contracts are used for asset allocation by pension sponsors it is known as an overlay strategy. This strategy is employed so as to avoid disrupting money manager’s activities.

Overreaction hypothesis: The overreaction hypothesis assumes that the investors would overreact to unanticipated news. This results in exaggerated stock prices movements.

Business Terms Glossary – P

P/E Ratio Equation: The price earning ratio of a stock is the profit earned by the firm on each share.

Partition: In law, partition refers to the splitting up of a land into portions which are allocated to the respective individual owners or tenants.

Partnership: This is a business partnership form of business ownership where the partners come together to carry on a trade or business, wherein person contributes money, labor, property or skill, and has a share in the profits and losses of the business.

Passive portfolio strategy: A strategy that relies on variegation to match the performance of some market index. There is a minimal effort made by the investor in directing the portfolio.

Patent: Patents are a set of exclusive intellectual property rights granted by a state to an inventor for a limited period of time in exchange for a public disclosure of an invention.

Payment-in-kind (PIK) bond: A bond where the coupon payments can be made in cash or in the form of additional bonds by the issuer.

Perfect hedge: A type of hedge fund where the risk factors of an investment are obviated. In this fund there is a balance of the profit and loss of an underlying asset and the market commitment or position of the hedge.

Performance evaluation: Performance evaluation is the fair and balanced feedback to the employees about job effectiveness and performance.

Permissible non-bank activities: Financial activities that are engaged by bank holding companies and relate closely to the banking sector. These subsidiary banking activities are either carried on directly, or through non-bank subsidiaries.

Perpetual warrants: Warrants without an expiration date.

Pit committee: The daily settlement price of futures contracts is determined by a committee of the stock exchange known as the pit committee.

Plan sponsors: Plan sponsors of a company are in charge of the company’s retirement and pension plans.

Portfolio: A financial portfolio is an aggregation of all the investments, real or financial.

Portfolio management: Portfolio management is the process by which a business decides on the mix of active projects, staffing and dollar budget allocated to each project.

Preferred shares: Preferred shares refers to certain preferential shares issued by a company which get a priority to the profits ahead of common or other equity shareholders.

Prepayments: A pre-payment is a privilege in a mortgage debt which allows the borrower to make payments ahead of their due date.

Price momentum: Price momentum is the movement of the prices of shares over the last year as compared to a market index.

Price persistence: The change in the stock price over a period of time relative to that of a market index.

Price risk: The risk associated with the lowering of a product or security prices in the future.

Prices: Price in business refers to the monetary value assigned to a good, service or asset in an exchange or while trading.

Pricing efficiency: A characteristic of a market which states that the prices at all times fully reflect the information that is relevant to the valuation of securities.

Principal: In economics, principal refers to the original asset underlying an income stream, as distinguished from interest earned on that asset.

Product comparison advertising: An advertising technique where one brand is compared, directly or indirectly, with other brands.

Product life cycle (PLC): Product life cycle is the stages that a specific product goes through. Once the development of the product is done, it is introduced or launched into the market. After sometime it gains customers as it grows and eventually with the market stabilizing the product becomes mature. After a period of time when the product is developed and the superior competitors are introduced, it goes into decline and is eventually withdrawn.

Program trading: Program trading is a type securities trading, where there is a basket of fifteen stocks or more.

Pull promotional strategy: A pull promotion strategy also known as a pull strategy is a strategy where advertising and consumer promotion is used to build up consumer demand for a product which would spark of a demand for the product where the consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers.

Purchase agreement: A legal agreement where details of the real estate property is provided, including price and terms.

Purchase money mortgage (PMM): A financing technique when buying a home, where the buyer borrows from the seller instead of taking a loan from a bank. This is when a buyer cannot qualify for a bank loan for the full amount.

Business Terms Glossary – Q

Qualified lead: A qualified lead refers to a potential customer who is interested in buying the product or service and falls under the stipulated criterion.

Qualified opinion: The term qualified opinion refers to language in the auditor’s opinion accompanying financial statements that calls attention to limitations of the audit or exceptions the auditor takes to items in the statements.

Quitclaim deed: A quitclaim deed is a deed that conveys to the grantee that interests in property as the grantor may want. The grantee would, thus, be assuming responsibility for any claims brought against the property.

Business Terms Glossary – R

Rally: Generally following a period of flat or declining prices, a rally is a period of sustained increases in the prices of stocks, bonds or indexes.

Random sampling: Sampling is that part of statistical practice concerned with the selection of individual observations intended to yield some knowledge about a population of concern. Random sampling is that which is done in the absence of strict criterion.

Rate anticipation swaps: Rate anticipation swap refers to the sale of one bond combined with the purchase of another bond of different maturity in order to take maximum advantage of expected changes in interest rates.

Rate of interest: Rate of interest is the rate, as a proportion of the principal, at which interest is calculated.

Real estate broker: A real estate broker is an intermediary who receives a commission for arranging and facilitating the sale of a property for a buyer or a seller.

Realtor: The term realtor is a specific designation given to members of real estate firms, which are affiliated with the National Association of Realtors (NAR), who are trained and licensed to assist clients in buying and selling real estate.

Rebating: The term, in business, refers to partial return of a payment. Mostly in case of amount balances, sums of money are rebated.

Redemption charge: Redemption charge is the commission that a mutual fund charges an investor who is redeeming shares.

Refinance: Refinance refers to the paying back one loan or mortgage by taking another one with different terms.

Registered office: The Registered Office is an address which is registered at the registering authority as the official address of a company, an association or any other legal entity. It does not have to be where the organization conducts its business and it is not unusual for accountants or agents to provide registered office services.

Regression analysis: The term regression analysis refers to the use of regression to make quantitative predictions of one variable from the values of another.

Regulatory surplus: The business term regulatory surplus refers to the surplus as measured using regulatory accounting principles (RAP), which may allow the non-market valuation of assets or liabilities and which may be materially different from economic surplus.

Relative yield spread: Relative Yield spread refers to the ratio of the yield spread to the yield level. Mostly, it is used for bonds.

Remainder: Remainder as a term in business, or otherwise, refers to something left over after other parts have been taken away.

Renegotiable rate: Renegotiable rate is a type of variable rate which involve a renewable short-term “balloon” note. The interest rate on the loan is, ordinarily, fixed during the term of the note. But, when the balloon comes due, the lender may refinance it at a higher rate. In order for the loan to be fully amortized, periodic refinancing may be required.

Required reserves: Required reserves refer to the reserves against deposits that commercial banks and thrifts are required to hold, either in cash or in deposits, at the Federal Reserve.

Required yield: Required yield refers to the yield required by the marketplace to match available expected returns for financial instruments with comparable risk. It generally refers to bonds.

Reserve ratios: Reserve ratio refers to the mandatory required percentage of reserves (deposits) that banks and thrifts must hold in cash or in deposits at the Federal Reserve. This percentage changes from time to time depending on the economic circumstances.

Reset frequency: Reset frequency is the frequency in which the floating rate may change.

Residual claim: Residual claims are also known as equity claims. It refers to a claim to a share of earnings after debt obligations have been satisfied.

Residual risk: Residual risk relates to the risk that is unique to a company such as a strike, the outcome of unfavorable litigation, or a natural catastrophe. Such a risk is one that can be eliminated, to a certain extent, through diversification.

Return on total assets: A publicly-traded company’s earnings before interest and taxes, divided by its total assets and expressed as a percentage, this is the return on total assets. A higher return on total assets indicates a healthy profit making company, whereas one with a lower return on total assets indicates vice versa.

Revenue fund: Revenue fund refers to a fund accounting for all revenues from an enterprise financed by a municipal revenue bond.

Risk premium: Risk premium refers to the extra yield over the risk-free rate owing to various types of risk inherent in a particular investment.

Risky asset: A risky asset is an asset whose future return on asset cannot be ascertained specifically.

Business Terms Glossary – S

Safety cushion: The term safety cushion refers to the difference between a portfolio’s actual value and the minimum available return that triggers the contingent immunization strategy.

Safety-net return: By definition, the safety net return refers to the minimum available return that will trigger an immunization strategy.

Salary: The term salary refers to a remuneration that is given to an employee on a stipulated regularity basis for the work that he does for the organization.

Sales: The term sales refers to the revenue that an individual or an organization may generate by selling products or services.

Sales agreement: A sales agreement is an agreement or a contract in which property is transferred from the seller to the buyer for a fixed price in money.

Sales channel: Sales channel is a medium that is used to distribute the product in the market. This can be done either by sending the product directly to the end user, or with the help of intermediaries.

Sales charge: Sales charge is the fee that is paid to buy shares of a mutual fund or any other investment with the help of a finance professional.

Sales forecast: A sales forecast is an estimate of the future sales figures. This estimate is made by referring to previous sales figures, market trends and economic conditions prevalent.

Savings deposits: Savings deposits or saving account is an account in a bank or any other financial institution which stores finances and pays interest.

Search costs: Search costs are costs that are exclusively confined to the search of a counter-party of the trade. It includes costs like advertising.

Seasonal business: Seasonal business, is basic trade that is dependent and highly affected by seasonal factors.

Securities analysts: Security analysts are financial analysts. By definition, security analysts analyze financial statements, interview corporate executives, and attend trade shows, in order to write reports recommending either purchasing, selling, or holding of various stocks.

Security deposit (initial): The initial security deposit can also be called margin. It is a cash amount that has to be deposited with the broker for each contract. It works as a guarantee of fulfillment of the contract. It is not considered as part payment or purchase.

Security deposit (maintenance): Maintenance security deposit is also known as a maintenance deposit. It is an amount that is a small part of the part payment that is kept aside to ensure completion of a transaction or complete fulfillment of a contract.

Sell hedge: A sell hedge means the sale of a futures contract or option on a security or commodity that one owns, in order to hedge against the risk of a decline in its price.

Sell limit order: Sell limit order refers to a conditional trading order that indicates that a security may be sold at a minimum designated price or higher.

Serial bonds: Serial bonds are bonds issued under a single indenture, simultaneously with groups of bonds. Serial bonds are, ordinarily, scheduled to mature periodically.

Service business: Service business refers to a business that deals in services and not products. Such a business generates a majority of its revenue from services offered.

Settlement price: Settlement price is a figure determined by the closing range that is used to calculate gains and losses in futures market accounts. They are used to determine gains, losses, margin calls, and invoice prices for deliveries.

Settlement rate: Settlement rate is the rate at which pension benefits could be settled if the company sponsoring the pension plan would wish to terminate its pension obligation.

Share capital: Share capital is the amount of money that a company may raise by issuing shares of the company.

Short hedge: By definition, a short hedge is an investment transaction which is intended to provide protection against a decline in the value of an asset.

Short-term solvency ratios: Short-term solvency ratios can be defined as “Ratios used to judge the adequacy of liquid assets for meeting short-term obligations as they come due, including (1) the current ratio, (2) the acid test ratio, (3) the inventory turnover ratio, and (4) the accounts receivable turnover ratio.”

Shortfall risk: Shortfall risk refers to the risk that an investment’s actual return will be less than the expected return.

Simple linear regression: A simple linear regression is a regression analysis only between two variables, one being dependent and the other being explanatory.

Small-firm effect: The propensity of small firms to outperform the stock market in terms of total market capitalization.

Sole Proprietorship: A type of business entity which has no separate legal existence apart from its owner and who thus enjoys unlimited liability.

Special drawing rights (SDR’s): SDRs are an international type of monetary reserve currency which is designed to augment international liquidity by supplementing the standard reserve currencies of member countries. It was created by the International Monetary Fund (IMF) in 1969.

Spot markets: The spot market is a securities trading place where the goods are sold for cash and delivered immediately.

Spread strategy: A strategy that involves maintaining different positions on options with the same underlying asset, often with different expiration dates. It is designed as a hedge against loss regardless of price movements on the underlying asset.

Stagflation: An economic situation of slow growth and relatively high unemployment accompanied by a rise in prices, or inflation.

Standardized value: By definition, the distance of one data point from the mean, divided by the standard deviation of the distribution.

Stated conversion price: The price the issuer grants the security holder to purchase the common stock when a convertible security is issued. This corresponds to the par value of the convertible security divided by the conversion ratio.

Statutory surplus: The state statutes established by the state determines the accounting treatment of both assets and liabilities which in turn establishes the surplus of an insurance company.

Stock: A stock represents a share of ownership in a corporation. It is also referred to as an equity share.

Stock exchanges: A stock exchange is a corporation which provides the facility for trading of stocks and other financial securities by the stock brokers and traders. They also provide the facility for the issue and redemption of financial securities and instruments including the payment of income and dividends.

Stock index option: A stock option is a call or put option contract that gives the owner the right to buy or sell the options at a stock index at a fixed value until an assigned date. The underlying asset in this case is the stock market.

Stock turnover: Stock or inventory turnover is the total value of stock sold in a year divided by the average value of goods held in stock.

Structured portfolio strategy: An investment portfolio strategy which is designed to match or exceed the performance of some specific future liabilities.

Surety bonds: A surety bond guarantees that the second party will fulfill an obligation or series of obligations to a third party, so when the obligations are not met, the third party will recover its losses via the bond.

Surplus management: The technique of managing the funds of a company with the aim of earning a return on the available assets and creating more assets than liabilities.

Swap assignment: A swap or a transaction where the role of a counter-party in an interest rate swap is substituted by a new counter-party whose credit is acceptable to the other original counter-party.

Swaptions: A swaption is an option where the owner is granted the right to enter into an underlying interest rate swap.

Switching: When the position of a certain futures contract is liquidated and a position in another futures contract of the same type is bought simultaneously, it is known as switching.

Switching costs: The costs of switching, which is incurred when a customer moves from one marketplace or supplier to another.

SWOT analysis: SWOT Analysis is a strategic planning tool used for evaluating the strengths, weaknesses, opportunities, and threats of business venture or a specific project.

Systematic risk: In finance, systematic risk, is the risk associated with aggregate market returns and which cannot be combated by investment diversification.

Business Terms Glossary – T

Tangible asset: A tangible asset is any asset that physically exists/has a physical form and has a value. For example, automobiles, land, currencies, etc are considered as tangible assets.

Target market: A target market is a particular group of potential consumers who are most likely to buy a particular product or service of a company.

Tariff: A tariff is a list or schedule of duties, prices and fares imposed on goods that are imported or exported.

Tax: Tax is the fee charged by the government on an individual’s income, a product or a service.

Technical analysts: Technical analysts study market trends, activities, and stocks and evaluate securities with the help of the history of a stock and its price, statistics and volume.

Telemarketing: Telemarketing is a direct marketing method through which products and services of a company are promoted among consumers over the telephone.

Tender: A tender is the presentation of a formal offer of the prices that would be charged for the purchase of goods or for the offering its services.

Term life insurance: Term life insurance is a type of temporary insurance that will provide coverage only for a limited duration. The face amount of the term policy is received by the beneficiary in case of the death of the investor.

Trademark: A trademark is a sign, word, phrase or symbol which, when used, distinguishes the products and services of a company or an individual from that of similar products and services of other such companies or individuals.

Trustee: A trustee is an appointed person who holds a legal right to property entrusted to him/her by the owner, and who manages assets for the benefit of another.

Business Terms Glossary – U

U.S. treasury bill: The U.S treasury bill, commonly known as T-bills, is a short term debt obligation of the U.S treasury, that has a maturity period of a year or less. It is backed by the U.S government’s faith and credit and sold at a discounted rate than its par value.

U.S. treasury bond: The U.S treasury bond is a long-term, fixed-interest, debt security sold by the U.S. treasury, that has a maturity of more than ten years.

U.S. treasury note: The U.S treasury note is a debt obligation that matures between 1 to 10 years. It may mature in 2, 3, 5, 7 or 10 years.

Underlying: Underlying is anything that two or more parties, entering a derivative contract, agree to exchange.

Underlying security: Underlying security is a type of security or commodity, that must be purchased or sold if a call option or put option contract is exercised.

Underwriting income: Underwriting income is the money generated by insurance companies, calculated by deducting the earned premium from the losses incurred.

Undiversifiable risk: Undiversifiable risk is a type of risk that is associated with an entire class of liabilities or assets. It may be applicable to a global economy, an industry or a particular country.

Unique user sessions: Unique user sessions refer to the time that a user, having a unique IP address, spends on a particular website. Tracking unique user sessions enables to measure the traffic that a website gets.

Unit variable costs: Unit variable cost is the cost associated with the materials and labor of a single, specific unit of goods that are sold.

Unsystematic risk: Unsystematic risk is a type of risk that is specific to an industry, company or firm. It includes the losses incurred due to weather conditions, labor issues like strikes, or unfavorable litigation.

Uptick trade: Uptick trade is a term used to describe a transaction, usually in a stock market security, that takes place at a price higher than that of the preceding transaction involving the same security.

Used credit: Used credit is a term used to describe the part of a line of credit which is not available for use anymore.

User benefits: User benefits is the understanding of the reason why a consumer purchases a particular product even though it may not be directly correlative to the product’s functions and features.

Business Terms Glossary – V

VA loan: A VA loan is a type of loan that is guaranteed against default by the U.S. Department of Veteran Affairs. It is offered to veteran military personnel to help them and their families obtain home financing.

Valuation: Valuation is a term used to describe the process of assessing or determining the value of assets, a company or a firm.

Value manager: A value manager is one who buys stocks at a discounted rate against their face value and sells them at a rate higher than that of their face value.

Variable rate: Variable rate is a term used to describe a type of interest rate or dividend that may change or fluctuate anytime, depending upon the market interest rates, during the life of the loan.

Variable rate mortgage (VRM): Variable rate mortgage, also known as adjustable rate mortgage or floating rate mortgage, is a type of long-term mortgage loan, that has a variable rate of interest for the duration of the loan.

Variation margin: Variation margin is the fund required to get an investor’s trading account up to the margin level during market fluctuations.

VAT: VAT stands for value added tax, which is a type of consumption tax, levied at every production stage on goods and services.

Venture management: Venture management is a business management discipline where various sections within an organization collaborate to innovate, rapidly increase productivity, and promote a spirit of entrepreneurship.

Vertical analysis: Vertical analysis is a method of analyzing financial statements in which assets, liabilities and equities are represented as a portion of the total account, as compared to horizontal analysis where a single year’s entries are considered a base, and the other years represent changes relative to that base.

Vertical integration: Vertical integration is a business strategy where the company moves up or down the supply chain.

Viral marketing: Viral marketing is a marketing technique or tactic in which information and products are promoted through prorogation of the marketing message from one person to another.

Virtual organization: A virtual organization is a network of independent organizations, that does not exist in a particular location, but exists through the Internet.

Business Terms Glossary – W

Wages: A wage is the compensation or remuneration paid for labor or services on an hourly, weekly or daily basis.

Wall street analyst: A Wall Street analyst, also called a sell-side analyst, is a financial security analyst who is employed with a brokerage firm. The recommendations of the wall street analyst is passed on the to the clients of the brokerage firm.

Web marketing: Web marketing, also known as Internet marketing or online marketing, is a term used for the marketing of products or services through the Internet.

Website: A website is a network or collection of web pages that is related to a particular topic. A website may contain a combination of text, videos and images.

Website traffic: Website traffic is term used to describe number or amount of hits or visits the website receives. Website traffic is measured to ascertain the popularity of the website.

Whole life insurance: Whole life insurance is a type of permanent life insurance policy that remains active throughout the lifetime of the insured, on the payment of a fixed premium amount. Whole life insurance policies pay off a particular amount in case of death of the insured.

Wholesale Sales Method: Wholesale sales method is the selling of large quantities of goods to a retailer, who in turn sells off the goods to consumers.

Wholesaler: A wholesaler is a person or company that buys goods in large quantities and sells them to retailers rather than selling them directly to the consumers.

Window contract: A window contract is an investment contract which is purchased with deposits that are guaranteed the same credit report. The deposits are purchased for a designated time period, between 3 and 12 months.

Withdrawal plan: A withdrawal plan is an option offered by mutual fund companies wherein the investor receives a periodic payout from his/her mutual fund redemptions.

Business Terms Glossary – Y

Yankee market: A slang term for the U.S. stock market.

Year end: In accounting, a year end refers to the end of an accounting period which may either be the fiscal year or the calendar year.

Yield: The returns on the investment or the interest or dividends received from a security.

Yield curve: By definition, a line that plots the interest rates, of bonds having equal credit quality, but differing maturity dates at a set point of time.

Yield ratio: The ratio of two bond yields.

Yield spread strategies: A portfolio which has been positioned in such a way that it is capable of capitalizing on the expected changes in yield spreads between sectors of the bond.

Business Terms Glossary – Z

Zero-balance account: A zero balance checking account in which the balance is maintained by transferring funds from a master account in an amount only large enough to cover check presented. This allows corporations to rule out the excess balances in separate accounts and maintain a check over the disbursements.

Zero-beta portfolio: An investment portfolio which is constructed such that there is a zero systematic risk.

Zero-coupon bond: These bonds do not pay interest during the life of the bonds and instead, the investor receives one lump sum equal to the initial investment, plus the imputed interest when the bond matures.

Zoning: A land use regulation used by local governments in most developed countries. It relates to the practice of designating permitted use of land based on mapped zones which separate one set of land uses from another.

Zoning ordinances: Zoning ordinances are acts specifying the type of use, for a property in specific areas in a city or a country.