A writ is a legal document written by a judge or other body with administrative or judicial jurisdiction, such as a court. The writ orders the person or entity to whom it is addressed to perform or cease performing a specified action. They are often issued after a judgment has been made and give the people involved in the suit the ability to carry out the judgment, such as a writ of execution.
Net interest margin (NIM) is a measurement comparing the net interest income a financial firm generates from credit products like loans and mortgages, with the outgoing interest it pays holders of savings accounts and certificates of deposit (CDs). Expressed as a percentage, the NIM is a profitability indicator that telegraphs the likelihood of a bank or investment firm thriving over the long haul. This metric helps prospective investors determine whether or not to invest in a given financial services firm. Simply put: a positive net interest margin suggests that an entity operates profitably, while a negative figure implies investment inefficiency. In the latter scenario, a firm may take corrective action by applying funds toward outstanding debt or shifting those assets towards more profitable investments.
A marginal tax rate is the rate at which tax is incurred on an additional dollar of income. In the United States, the federal marginal tax rate for an individual increases as income rises. This method of taxation, known as progressive taxation, aims to tax individuals based upon their earnings, with low-income earners being taxed at a lower rate than higher-income earners. While many believe this is the most equitable method of taxation, many others believe this discourages business investment by removing the incentive to work harder.
Without evidence of insurability means an insurance provider underwrote a policy, such as for life or health insurance, without verifying that the policyholder was eligible for that coverage. Some group plans may not require proof of insurability if the applicant applies during the open enrollment period. Also, providers of plans offering lower or limited benefits may not need evidence of a policyholder’s insurability. Also, convertible life insurance will not require additional evidence on conversion.
The barbell is an investment strategy applicable primarily to a fixed-income portfolio. Following a barbell method, half the portfolio contains long-term bonds, and the other half holds short-term bonds. The “barbell” gets its name because the investment strategy looks like a barbell with bonds heavily weighted at both ends of the maturity timeline. The graph will show a large number of short-term holdings and long-term maturities, but little or nothing in intermediate holdings.
Joint supply is an economic term referring to a product or process that can yield two or more outputs. Common examples occur within the livestock industry: cows can be utilized for milk, beef, and hide; sheep can be utilized for meat, milk products, wool, and sheepskin. If the supply of cows increases, so will the joint supply of dairy and beef products.
The barbell is an investment strategy applicable primarily to a fixed-income portfolio. Following a barbell method, half the portfolio contains long-term bonds, and the other half holds short-term bonds. The “barbell” gets its name because the investment strategy looks like a barbell with bonds heavily weighted at both ends of the maturity timeline. The graph will show a large number of short-term holdings and long-term maturities, but little or nothing in intermediate holdings.
Joint supply is an economic term referring to a product or process that can yield two or more outputs. Common examples occur within the livestock industry: cows can be utilized for milk, beef, and hide; sheep can be utilized for meat, milk products, wool, and sheepskin. If the supply of cows increases, so will the joint supply of dairy and beef products.
A tangible asset is an asset that has a finite monetary value and usually a physical form. Tangible assets can typically always be transacted for some monetary value though the liquidity of different markets will vary. Tangible assets are the opposite of intangible assets which have a theorized value rather than a transactional exchange value.
An unsolicited bid is an offer made by an individual, investors, or a company to purchase a company that is not actively seeking a buyer. Unsolicited bids may sometimes be referred to as hostile bids if the target company doesn’t want to be acquired. They usually come up when a potential acquirer sees value in the target company.