A hell or high water contract (also known as a promise-to-pay contract) is a non-cancelable contract whereby the purchaser must make the specified payments to the seller, regardless of any difficulties they may encounter. Hell or high water clauses bind the purchaser or lessee to the terms of the contract until the contract’s expiration.
An unquoted public company, also known as an unlisted public company, is a firm that has issued equity shares that are no longer traded on a stock exchange.
Vested benefit obligation (VBO) refers to the actuarial present value of the pension plan that has been earned by employees and is one measure of a firm’s pension fund liability.
The Asian financial crisis, also called the Asian Contagion, was a sequence of currency devaluations and other events that began in the summer of 1997 and spread through many Asian markets. The currency markets first failed in Thailand as the result of the government’s decision to no longer peg the local currency to the U.S. dollar (USD). Currency declines spread rapidly throughout East Asia, in turn causing stock market declines, reduced import revenues, and government upheaval.
A technocracy is an ideology or form of government wherein decision-makers are chosen for office based on their technical expertise and background. A technocracy differs from a traditional democracy in that individuals elected to a leadership role are chosen through a process that emphasizes their relevant skills and proven performance, as opposed to whether or not they fit the majority interests of a popular vote. The individuals that occupy such positions in a technocracy are known as ‘technocrats.’
A certified public accountant (CPA) is a designation given by the American Institute of Certified Public Accountants (AICPA) to individuals that pass the Uniform CPA Examination and meet the education and experience requirements. The CPA designation helps enforce professional standards in the accounting industry. Other countries have certifications equivalent to the CPA designation, notably, the chartered accountant (CA) designation.
A global macro strategy is a hedge fund or mutual fund strategy that bases its holdings primarily on the overall economic and political views of various countries or their macroeconomic principles. Holdings may include long and short positions in various equity, fixed income, currency, commodities, and futures markets.
Days payable outstanding (DPO) is a financial ratio that indicates the average time (in days) that a company takes to pay its bills and invoices to its trade creditors, which include suppliers, vendors or other companies. The ratio is calculated on a quarterly or on an annual basis, and it indicates how well the company’s cash outflows are being managed.
A currency exchange is a business that has the legal right to exchange one currency for another to its customers. Currency exchange of physical money (coins and paper bills), is usually done over a counter at a teller station. Currency exchange businesses that operate such transactions can be found in a variety of forms and venues. It may be a stand-alone, small business operating out of a single office, or it may be a larger chain of small exchange-service booths at airports, or it may be a large international bank offering currency exchange services at its teller stations. On a larger scale, this is referred to as repatriation.
A qualifying investment refers to an investment purchased with pretax income, usually in the form of a contribution to a retirement plan. Funds used to purchase qualified investments do not become subject to taxation until the investor withdraws them.