Alpha (the Greek letter α) is a term used in investing to describe a strategy’s ability to beat the market, or it’s edge. Alpha is thus also often referred to as “excess return” or “abnormal rate of return,” which refers to the idea that markets are efficient, and so there is no way to systematically earn returns that exceed the broad market as a whole. Alpha is often used in conjunction with beta (the Greek letter β) , which measures the broad market’s overall volatility or risk, known as systematic market risk.
Month: July 2020
Nontariff Barrier
A nontariff barrier is a way to restrict trade using trade barriers in a form other than a tariff. Nontariff barriers include quotas, embargoes, sanctions, and levies. As part of their political or economic strategy, large developed countries frequently use nontariff barriers to control the amount of trade they conduct with other countries.
International Finance
International finance, sometimes known as international macroeconomics, is the study of monetary interactions between two or more countries, focusing on areas such as foreign direct investment and currency exchange rates.
Vest Fleece
Vest fleece is a slang term used to describe a situation in which a company accelerates the vesting of employee stock options to capitalize on an elevated stock price. Moreover, accelerated vesting is usually preceded by a period of excessively high employee stock option grants. Stock option holders are able to turn their options into stock in a shorter time period, with a deleterious effect on existing shareholders.
Winner-Takes-All Market
A winner-takes-all market refers to an economy in which the best performers are able to capture a very large share of the available rewards, while the remaining competitors are left with very little. The prevalence of winner-takes-all markets widens wealth disparities because a select few are able to capture increasing amounts of income that would otherwise be more widely distributed throughout the population.
The Uniform Simultaneous Death Act is a law used to determine the inheritance when more than one death occurs at the same time. The act states that if two or more people died simultaneously due to an accident within a 120-hour survival period, with no will, their assets are to be passed to the relatives rather than from one estate to another. This act is used to avoid double administrative costs.
Descriptive Statistics
Descriptive statistics are brief descriptive coefficients that summarize a given data set, which can be either a representation of the entire or a sample of a population. Descriptive statistics are broken down into measures of central tendency and measures of variability (spread). Measures of central tendency include the mean, median, and mode, while measures of variability include the standard deviation, variance, the minimum and maximum variables, and the kurtosis and skewness.
Zero-Rated Goods
In countries that use value-added tax (VAT), zero-rated goods are products that are exempt from that value taxation. Examples of items that may be zero-rated include certain foods and beverages, exported goods, donated goods sold by charity shops, equipment for the disabled, prescription medications, water, and sewage services, books and other printed publications, and children’s clothing.
The Uniform Simultaneous Death Act is a law used to determine the inheritance when more than one death occurs at the same time. The act states that if two or more people died simultaneously due to an accident within a 120-hour survival period, with no will, their assets are to be passed to the relatives rather than from one estate to another. This act is used to avoid double administrative costs.
Descriptive Statistics
Descriptive statistics are brief descriptive coefficients that summarize a given data set, which can be either a representation of the entire or a sample of a population. Descriptive statistics are broken down into measures of central tendency and measures of variability (spread). Measures of central tendency include the mean, median, and mode, while measures of variability include the standard deviation, variance, the minimum and maximum variables, and the kurtosis and skewness.