Actually, hurricane insurance doesn’t exist as a specific, separate type of policy. The term usually refers to what is, strictly speaking, a hurricane deductible on a homeowners insurance policy: an extra amount a homeowner must pay before the insurer will cover the damage or destruction caused by a hurricane. A percentage of the property’s worth, this deductible is common in 19 hurricane-prone states and Washington D.C.
The deadweight loss of taxation refers to the harm caused to economic efficiency and production by a tax. In other words, the deadweight loss of taxation is a measurement of how far taxes reduce the standard of living among the taxed population.
A bond’s nominal yield, depicted as a percentage, is calculated by dividing all the annual interest payments by the face, or par, value of the bond.
Forfaiting is a means of financing that enables exporters to receive immediate cash by selling their medium and long-term receivables—the amount an importer owes the exporter—at a discount through an intermediary. The exporter eliminates risk by making the sale without recourse. It has no liability regarding the importer’s possible default on the receivables.
A debt fund is an investment pool, such as a mutual fund or exchange-traded fund, in which the core holdings comprise fixed income investments. A debt fund may invest in short-term or long-term bonds, securitized products, money market instruments or floating rate debt. On average, the fee ratios on debt funds are lower than those attached to equity funds because the overall management costs are lower.
Leads and lags in international business most commonly refers to the alteration of normal payment or receipts in a foreign exchange transaction based on an expected change in exchange rates. When a corporation or government entity has the ability to control the schedule of payments being received or being made, then that organization may opt to pay earlier than scheduled or delay the payment later than scheduled. These changes would be made in anticipation of capturing the benefit from a change in currency exchange rates. These dynamics hold true both for small and large transactions.
Three black crows indicate a bearish candlestick pattern that predicts the reversal of an uptrend. Candlestick charts show the opening, high, low, and the closing price on a particular security. For stocks moving higher the candlestick is white or green. When moving lower, they are black or red.
Life-cycle funds are asset-allocation funds in which the share of each asset class is automatically adjusted to lower risk as the desired retirement date approaches. As a practical matter, this usually means that the percentage of bonds and other fixed-income investments increases. Life-cycle funds are also known as age-based funds or target-date retirement funds.
Three black crows indicate a bearish candlestick pattern that predicts the reversal of an uptrend. Candlestick charts show the opening, high, low, and the closing price on a particular security. For stocks moving higher the candlestick is white or green. When moving lower, they are black or red.
Life-cycle funds are asset-allocation funds in which the share of each asset class is automatically adjusted to lower risk as the desired retirement date approaches. As a practical matter, this usually means that the percentage of bonds and other fixed-income investments increases. Life-cycle funds are also known as age-based funds or target-date retirement funds.