Month: June 2020

Legal tender is any thing recognized by law as a means to settle a public or private debt or meet a financial obligation, including tax payments, contracts, and legal fines or damages. The national currency is legal tender in practically every country. A creditor is legally obligated to accept legal tender toward repayment of a debt. Legal tender is established by a statute which specifies the thing to be used as legal tender and the institution that is authorized to produce and issue it to the public, such as the U.S. Treasury in the United States and the Royal Canadian Mint in Canada. read more

Painting the tape is a form of market manipulation whereby market players attempt to influence the price of a security by buying and selling it among themselves to create the appearance of substantial trading activity.

Legal tender is any thing recognized by law as a means to settle a public or private debt or meet a financial obligation, including tax payments, contracts, and legal fines or damages. The national currency is legal tender in practically every country. A creditor is legally obligated to accept legal tender toward repayment of a debt. Legal tender is established by a statute which specifies the thing to be used as legal tender and the institution that is authorized to produce and issue it to the public, such as the U.S. Treasury in the United States and the Royal Canadian Mint in Canada. read more

Painting the tape is a form of market manipulation whereby market players attempt to influence the price of a security by buying and selling it among themselves to create the appearance of substantial trading activity.

In the investing world, a new paradigm is a revolutionary new concept, idea, or way of doing things that replaces the old beliefs or ways of doing things. This may stem from a political or economic event, a new finding in academia, new technology or innovation, a new business or business leader, or another important occurrence. New paradigm ideas or concepts are so revolutionary that many people believe it will change how we think and act going forward.

Joint liability denotes the obligation of two or more partners to pay back a debt or be responsible for satisfying a liability. A joint liability allows parties to share the risks associated with taking on debt and to protect themselves in the event of lawsuits. An individual subject to joint liability may be referred to as jointly liable.

Labor productivity measures the hourly output of a country’s economy. Specifically, it charts the amount of real gross domestic product (GDP) produced by an hour of labor. Growth in labor productivity depends on three main factors: saving and investment in physical capital, new technology, and human capital.

Overreaction is an emotional response to new information. In finance and investing, it is an emotional response to a security like a stock or other investment, which is led either by greed or fear. Investors, overreacting to news, cause the security to become either overbought or oversold, until it returns to its intrinsic value.

Paid-up additional insurance is additional whole life insurance coverage that a policyholder purchase using the policy’s dividends instead of premiums. Paid-up additional insurance is available as a rider on a whole life policy. It lets the policyholder increase their living benefit and death benefit by increasing the policy’s cash value.

Take or pay is a provision, written into a contract, whereby one party has the obligation of either taking delivery of goods or paying a specified amount. Take or pay provisions benefit both the buyer and the seller by sharing risk, and can benefit society by facilitating trade and reducing transactions costs.