Month: May 2020

The over-the-counter bulletin board (OTCBB) is an electronic quotation service provided by the Financial Industry Regulatory Authority (FINRA) to its subscribing members. In many ways, the OTCBB is a shell of what it once was in that it has been eclipsed by OTC Markets Group’s offerings in the same space.

Total Shareholder Return (TSR) factors in capital gains and dividends when measuring the total return generated by a stock to an investor. TSR is the internal rate of return (IRR) of all cash flows to an investor during the holding period of an investment. Whichever way it is calculated, TSR means the same thing: the total amount returned to investors.

A counterparty is the other party that participates in a financial transaction, and every transaction must have a counterparty in order for the transaction to go through. More specifically, every buyer of an asset must be paired up with a seller who is willing to sell and vice versa. For example, the counterparty to an option buyer would be an option writer. For any complete trade, several counterparties may be involved (for instance a buy of 1,000 shares is filled by ten sellers of 100 shares each). read more

Window guaranteed investment (WGIC) contracts are a type of investment plan in which the investor makes a series of payments to an insurance company and is guaranteed a return on investment. This type of guaranteed investment contract (GIC) differs from other GICs in that the investor makes principal payments in installments over time, rather than in one lump sum up front. Investors use window guaranteed investment contracts with 401(k) plans and other defined contribution pension plans.

A point of purchase (POP) is a term used by marketers and retailers when planning the placement of products for consumers, such as product displays strategically placed in a grocery store aisle or advertised in a weekly flyer. Similar to this term is the point of sale (POS), which is the point at which a customer purchases and pays for products, such as on a website or at a store checkout. A POP is an area that surrounds the POS, where you often encounter promotional activity or other products.

Energy Return on Investment (EROI) is a ratio of the amount of energy (exergy) obtained from an energy resource to the amount of energy (exergy) expended to produce that energy. The energy return on investment (EROI) is a key determinant of the price of energy because sources of energy that can be tapped relatively cheaply will allow the price to remain low.

An investment consultant refers to a professional who provides investors with investment products, advice, and/or planning. Investment consultants do in-depth work on formulating investment strategies for clients, helping them fulfill their needs and reach their financial goals.

A horizontal acquisition is when one company acquires another company that is in the same industry and works at the same production stage. The new combined entity may be in a better competitive position due to increased market share or scalability than the standalone companies that were combined to form it. Horizontal acquisitions expand the capacity of the acquirer, but the basic business operations remain the same.

The terminal capitalization rate, also known as the exit rate, is the rate used to estimate the resale value of a property at the end of the holding period. The expected net operating income (NOI) per year is divided by the terminal cap rate (expressed as a percentage) to get the terminal value. Terminal capitalization rates are estimated based on comparable transaction data or what is believed to be appropriate for a particular property’s location and attributes.

Quantity demanded is a term used in economics to describe the total amount of a good or service that consumers demand over a given interval of time. It depends on the price of a good or service in a marketplace, regardless of whether that market is in equilibrium. The relationship between the quantity demanded and the price is known as the demand curve, or simply the demand. The degree to which the quantity demanded changes with respect to price is called the elasticity of demand.