Functional obsolescence is the reduction of an object’s usefulness or desirability because of an outdated design feature that cannot be easily changed. The application of the term varies based on industry. For example, in real estate, it refers to the loss of property value due to an obsolete feature, such as an old house with one bathroom in a neighborhood filled with new homes that have at least three bathrooms.
The effective annual interest rate is the real return on a savings account or any interest-paying investment when the effects of compounding over time are taken into account. It also reveals the real percentage rate owed in interest on a loan, a credit card, or any other debt.
The liquidation margin is the value of all of the positions in a margin account. These can include both long and short positions.
The effective annual interest rate is the real return on a savings account or any interest-paying investment when the effects of compounding over time are taken into account. It also reveals the real percentage rate owed in interest on a loan, a credit card, or any other debt.
The liquidation margin is the value of all of the positions in a margin account. These can include both long and short positions.
A one-cancels-the-other order (OCO) is a pair of orders stipulating that if one order executes, then the other order is automatically canceled. An OCO order combines a stop order with a limit order on an automated trading platform. When either the stop or limit price is reached and the order executed, the other order automatically gets canceled. Experienced traders use OCO orders to mitigate risk and to enter the market.
A unified tax credit is a certain amount of assets that each person is allowed to gift to other parties without having to pay gift, estate, or generation-skipping transfer taxes. The credit is afforded to every man, woman and child in America by the Internal Revenue Service (IRS).
Indenture refers to a legal and binding agreement, contract, or document between two or more parties. Traditionally, these documents featured indented sides or perforated edges. Historically, indenture has also referred to a contract binding one person to work for another for a set period of time (indentured servant), particularly European immigrants. In modern day finance, the word indenture most commonly appears in bond agreements, real estate deals, and some aspects of bankruptcies.
A probability distribution is a statistical function that describes all the possible values and likelihoods that a random variable can take within a given range. This range will be bounded between the minimum and maximum possible values, but precisely where the possible value is likely to be plotted on the probability distribution depends on a number of factors. These factors include the distribution’s mean (average), standard deviation, skewness, and kurtosis.
The Value Reporting Form is an insurance report used to provide the information necessary for a variable coverage amounts needed by a business which holds irregular inventories throughout the year. The irregular inventory may be differences in the quantity, quality, specific items held. The Value Reporting Form periodically reports the values of this shifting stock to the insurance provider. The insurer, in turn, adjusts the amount of coverage to reflect the value of the current inventory. Using a value reporting form can help the company avoid being over- or underinsured. You may also see this form under the name of a Stock Reporting Form.