A holding period is the amount of time the investment is held by an investor, or the period between the purchase and sale of a security. In a long position, the holding period refers to the time between an asset’s purchase and its sale. In a short options position, the holding period is the time between when a short seller buys back the securities and when the security is delivered to the lender to close the short position.
A global depositary receipt (GDR) is a bank certificate issued in more than one country for shares in a foreign company.
Branch banking is the operation of storefront locations away from the institution’s home office for the convenience of customers.
Geolocation is the ability to track a device’s whereabouts using GPS, cell phone towers, WiFi access points or a combination of these. Since devices are used by individuals, geolocation uses positioning systems to track an individual’s whereabouts down to latitude and longitude coordinates, or more practically, a physical address. Both mobile and desktop devices can use geolocation.
Bootstrapping is building a company from the ground up with nothing but personal savings, and with luck, the cash coming in from the first sales. The term is also used as a noun: A bootstrap is a business an entrepreneur with little or no outside cash or other support launches.
Fast-moving consumer goods are products that sell quickly at relatively low cost. These goods are also called consumer packaged goods.
The minimum efficient scale (MES) is the lowest point on a cost curve at which a company can produce its product at a competitive price. At the MES point, the company can achieve the economies of scale necessary for it to compete effectively in its industry.
Manufacturing Resource Planning (MRP II) is an integrated information system used by businesses. Manufacturing Resource Planning (MRP II) evolved from early Materials Requirement Planning (MRP) systems by including the integration of additional data, such as employee and financial needs.
A related-party transaction is a deal or arrangement between two parties who are joined by a preexisting business relationship or common interest. For example, a contract between a major shareholder of a corporation and that corporation, agreeing that the shareholder’s company will renovate the corporation’s offices would be a related-party transaction.
Cost-volume-profit (CVP) analysis is a method of cost accounting that looks at the impact that varying levels of costs and volume have on operating profit. The cost-volume-profit analysis, also commonly known as break-even analysis, looks to determine the break-even point for different sales volumes and cost structures, which can be useful for managers making short-term economic decisions.