Month: March 2020

A lock-up period is a window of time when investors are not allowed to redeem or sell shares of a particular investment. There are two main uses for lock-up periods, those for hedge funds and those for start-ups/IPO’s.

In the world of investing, robust is a characteristic describing a model’s, test’s, or system’s ability to perform effectively while its variables or assumptions are altered. A robust concept will operate without failure and produce positive results under a variety of conditions.

The Hope Credit, or the Hope Scholarship Tax Credit, is a nonrefundable education tax credit offered to eligible American taxpayers. In particular, qualifying students who have yet to complete four years of post-secondary education can claim this tax credit.

Emigration is the relocation of people from one country to reside in another. People emigrate for many reasons, include increasing one’s chance of employment or improving quality of life. Emigration affects the economies of the countries involved in both positive and negative ways, depending on the current state of the countries’ economies.

Mid-cap is the term given to companies with a market capitalization (value) between $2 and $10 billion. As the name implies, a mid-cap company falls in the middle of the pack between large-cap (or big-cap) and small-cap companies. Classifications such as large-cap, mid-cap and small-cap are only approximations and may change over time.

Realized yield is the actual return earned during the holding period for an investment, and may include dividends, interest payments, and other cash distributions. The term may be applied to a bond sold before its maturity date or dividend-paying security. Generally speaking, the realized yield on bonds includes the coupon payments received during the holding period, plus or minus the change in the value of the original investment, calculated on an annual basis.

A deficit spending unit is an economic term used to describe how an economy, or an economic group within that economy, has spent more than it has earned over a specified measurement period. Both companies and governments may experience a deficit spending unit.

The Herfindahl-Hirschman Index (HHI) is a common measure of market concentration and is used to determine market competitiveness, often pre- and post-M&A transactions.

A backorder is an order for a good or service that cannot be filled at the current time due to a lack of available supply. The item may not be held in the company’s available inventory but could still be in production, or the company may need to still manufacture more of the product.