Administrative expenses are the expenses an organization incurs not directly tied to a specific function such as manufacturing, production, or sales. These expenses are related to the organization as a whole as opposed to an individual department or business unit. Salaries of senior executives and costs associated with general services such as accounting and information technology (IT) are examples of administrative expenses. They tend to be unrelated to gross margins.
A bounced check is slang for a check that cannot be processed because the account holder has nonsufficient funds (NSF) available for use. Banks return, or bounce, these checks, also known as rubber checks, rather than honoring them, and banks charge the check writers NSF fees.
The Hubbert curve is a method for predicting the likely production rate of any finite resource over time. When plotted on a chart, the result resembles a symmetrical bell-shaped curve.
Vega is the measurement of an option’s price sensitivity to changes in the volatility of the underlying asset. Vega represents the amount that an option contract’s price changes in reaction to a 1% change in the implied volatility of the underlying asset.
A general partner is one of two or more investors who jointly own a business and assume a day-to-day role in managing it.
Max pain, or the max pain price, is the strike price with the most open contract puts and calls and the price at which the stock would cause financial losses for the largest number of option holders at expiration.
A real estate investment group (REIG) refers to an entity that focuses the majority of its business on investing in real estate. In search of profits, real estate investment groups may choose to buy, renovate, sell, or finance properties. Real estate investment groups commonly buyout a property and sell units to investors while taking responsibility for the administration and maintenance of the property. Typically, real estate investment groups either do not elect or qualify for the real estate investment trust (REIT) status.
The Securities Exchange Act of 1934 (SEA) was created to govern securities transactions on the secondary market, after issue, ensuring greater financial transparency and accuracy and less fraud or manipulation.
Forward rate agreements (FRA) are over-the-counter contracts between parties that determine the rate of interest to be paid on an agreed upon date in the future. An FRA is an agreement to exchange an interest rate commitment on a notional amount.
The hedge ratio compares the value of a position protected through the use of a hedge with the size of the entire position itself. A hedge ratio may also be a comparison of the value of futures contracts purchased or sold to the value of the cash commodity being hedged.