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Investments glossary

Days Payable Outstanding – DPO Definition

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.

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Investments glossary

Currency Exchange

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. read more

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Investments glossary

Qualifying Investment

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.

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Investments glossary

PayPal

PayPal is an electronic commerce company that facilitates payments between parties through online transfers. PayPal allows customers to establish an account on its platform, which is connected to a user’s credit card or checking account. Once identification and proof of funds are confirmed, users can begin sending or receiving payments to and from other PayPal accounts online or through the company’s app.

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Investments glossary

Ethical Investing

Ethical investing refers to the practice of using one’s ethical principles as the primary filter for the selection of securities investing. Ethical investing depends on the investor’s views. Ethical investing is sometimes used interchangeably with socially conscious investing; however, socially conscious funds typically have one overarching set of guidelines that are used to select the portfolio, whereas ethical investing brings about a more personalized result.

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Investments glossary

Fund

A fund is a pool of money that is allocated for a specific purpose. A fund can be established for any purpose whatsoever, whether it is a city government setting aside money to build a new civic center, a college setting aside money to award a scholarship, or an insurance company setting aside money to pay its customers’ claims.

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Investments glossary

International Bond

An international bond is a debt obligation that is issued in a country by a non-domestic entity. Generally, it is denominated in the currency of its issuer’s native country. Like other bonds, it pays interest at specific intervals and pays its principal amount back to bondholder at maturity.

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Investments glossary

Hashgraph Consensus Mechanism

Hashgraph is a new kind of consensus mechanism that builds a consensus by using the blockchain concepts of gossip, gossip about gossip and virtual voting. It scores over the other standard consensus-building algorithms, like proof of work (PoW), in terms of better speed and higher efficiency as it does not send any votes or details over the network, which often leads to congestion and delays.

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Investments glossary

Jay-Z

Jay-Z, born Shawn Corey Carter on Dec. 4, 1969, is an American entrepreneur, investor, music producer, and rapper. With a net worth of $1 billion, according to Forbes Magazine, Jay-Z is the first hip-hop artist to become a billionaire.

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Investments glossary

Ideation

Ideation refers to the process of developing and conveying prescriptive ideas to others, typically in a business setting. It describes the sequence of thoughts—from the original concept to implementation. Ideations can spring forth from past or present knowledge, external influences, opinions, convictions, or principles. Ideation can be expressed in graphical, written, or verbal terms.