Month: February 2020

The currency of Oman. The Omani rial is broken into smaller units, called baisa, and is found in both coin and banknote form. It is managed by the Central Bank of Oman.

Loan modification is a change made to the terms of an existing loan by a lender. It may involve a reduction in the interest rate, an extension of the length of time for repayment, a different type of loan, or any combination of the three.

A 12b-1 fee is an annual marketing or distribution fee on a mutual fund. The 12b-1 fee is considered to be an operational expense and, as such, is included in a fund’s expense ratio. It is generally between 0.25% and 0.75% (the maximum allowed) of a fund’s net assets. The fee gets its name from a section of the Investment Company Act of 1940.

The goodness of fit test is a statistical hypothesis test to see how well sample data fit a distribution from a population with a normal distribution. Put differently, this test shows if your sample data represents the data you would expect to find in the actual population or if it is somehow skewed. Goodness-of-fit establishes the discrepancy between the observed values and those that would be expected of the model in a normal distribution case.

Enterprise multiple, also known as the EV multiple, is a ratio used to determine the value of a company. The enterprise multiple looks at a firm in the way that a potential acquirer would by considering the company’s debt. Stocks with an enterprise multiple of less than 7.5x based on the last 12 months (LTM) is generally considered a good value. However, using a strict cutoff is generally not appropriate because this is not an exact science.

Renewable Energy Certificates (RECs) are a market-based instrument that certifies the bearer owns one megawatt-hour (MWh) of electricity generated from a renewable energy resource. Once the power provider has fed the energy into the grid, the REC receive can then be sold on the open market as an energy commodity. However, RECs can go by many names, including Green tag, Tradable Renewable Certificates (TRCs), Renewable Electricity Certificates, or Renewable Energy Credits.

Good delivery refers to the unhindered transfer of ownership of a security from a seller to a buyer, with all necessary requirements having been met.

The legal lending limit is the maximum dollar amount that a single bank can lend to a given borrower. This limit is expressed as a percentage of an institution’s capital and surplus. The limits are overseen by the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC).

Customer to customer (C2C) is a business model, whereby customers can trade with each other, typically, in an online environment. Two implementations of C2C markets are auctions and classified advertisements. C2C marketing has soared in popularity with the arrival of the internet and companies such as eBay, Etsy, and Craigslist.