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Investments glossary

Inorganic Growth

Inorganic growth arises from mergers or takeovers rather than an increase in the company’s own business activity. Firms that choose to grow inorganically can gain access to new markets through successful mergers and acquisitions. Inorganic growth is considered a faster way for a company to grow compared to organic growth.

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Investments glossary

Inside Day

An inside day is a two-day price pattern that occurs when a second day has a range that is completely inside the first day’s price range. The high of the second day is lower than the first, and the low of the second is higher than the first.

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Investments glossary

Impact Investing

Impacting investing aims to generate specific beneficial social or environmental effects in addition to financial gains. Impact investments may take the form of numerous asset classes and may result in many specific outcomes. The point of impact investing is to use money and investment capital for positive social results.

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Investments glossary

Transfer Pricing

Transfer pricing is an accounting practice that represents the price that one division in a company charges another division for goods and services provided. Transfer pricing allows for the establishment of prices for the goods and services exchanged between a subsidiary, an affiliate, or commonly controlled companies that are part of the same larger enterprise. Transfer pricing can lead to tax savings for corporations, though tax authorities may contest their claims.

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Investments glossary

Trust Fund

A trust fund is an estate planning tool that establishes a legal entity to hold property or assets for a person or organization, managed by a trustee who is a neutral third party. Trust funds can hold a variety of assets such as money, real property, stocks and bonds, a business, or a combination of many different types of properties or assets. Trusts can be formed under a variety of forms and stipulations.

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Investments glossary

N.V.—Naamloze Vennootschap

N.V. is an acronym for the Dutch phrase Naamloze Vennootschap. Appearing after a firm’s name, it connotes incorporation means that the entity is the equivalent of a limited liability public company, with shares that trade on open markets—somewhat like the the American Inc., the French/Latin American/Spanish S.A., the U.K’s PLC, and the German or Swiss “A.G.”

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Investments glossary

Annuitization

Annuitization is the process of converting an annuity investment into a series of periodic income payments. Annuities may be annuitized for a specific period or for the life of the annuitant. Annuity payments may only be made to the annuitant or to the annuitant and a surviving spouse in a joint life arrangement. Annuitants can arrange for beneficiaries to receive a portion of the annuity balance upon their death.

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Investments glossary

Economic Depression

A depression is a severe and prolonged downturn in economic activity. In economics, a depression is commonly defined as an extreme recession that lasts three or more years or which leads to a decline in real gross domestic product (GDP) of at least 10 percent. in a given year. Depressions are relatively less frequent than milder recessions, and tend to be accompanied by high unemployment and low inflation.

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Investments glossary

Kazakhstan National Fund

The Kazakhstan National Fund is a sovereign wealth fund for the nation of Kazakhstan. The sovereign wealth fund originates from surplus revenues gained from taxes on the development of oil, gas and mineral reserves. According to the Sovereign Wealth Fund Institute, the Kazakhstan National Fund had approximately $57 billion in assets as of 2018.

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Investments glossary

Market Segmentation

Market segmentation is a marketing term that refers to aggregating prospective buyers into groups or segments with common needs and who respond similarly to a marketing action. Market segmentation enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another.