A written premium is an accounting term in the insurance industry used to describe the total amount customers are required to pay for insurance coverage on policies issued by a company during a specific period of time. Written premiums factor in the amount of premium charged for a policy that has already become effective, regardless of what portions have been earned.
A wet loan is a mortgage in which the funds realize at—or with the completion of—a loan application. Submission of other required documentation for closing the property, such as surveys and title searches, happens after the dispersion of funds.
A nonprofit organization is a business that has been granted tax-exempt status by the Internal Revenue Service (IRS) because it furthers a social cause and provides a public benefit. Donations made to a nonprofit organization are typically tax-deductible to individuals and businesses that make them, and the nonprofit itself pays no tax on the received donations or on any other money earned through fundraising activities. Nonprofit organizations are sometimes called NPOs or 501(c)(3) organizations based on the section of the tax code that permits them to operate.1
A written premium is an accounting term in the insurance industry used to describe the total amount customers are required to pay for insurance coverage on policies issued by a company during a specific period of time. Written premiums factor in the amount of premium charged for a policy that has already become effective, regardless of what portions have been earned.
The mosaic theory refers to a method of analysis used by security analysts to gather information about a corporation. The mosaic theory involves collecting public, non-public, and non-material information about a company to determine the underlying value of its securities and to enable the analyst to make recommendations to clients based on that information.
An equity-linked note (ELN) is an investment product that combines a fixed-income investment with additional potential returns that are tied to the performance of equities. Equity-linked notes are usually structured to return the initial investment with a variable interest portion that depends on the performance of the linked equity. ELNs can be structured in many different ways, but the vanilla version works like a strip bond combined with a call option on a specific security, a basket of securities or an index like the S&P 500 or DJIA. In the case of a note linked to an equity index, the security would typically be called an equity index-linked note.
In cost accounting, the high-low method is a way of attempting to separate out fixed and variable costs given a limited amount of data. The high-low method involves taking the highest level of activity and the lowest level of activity and comparing the total costs at each level.
Regulation SHO is a piece of Securities and Exchange Commission (SEC) legislation, implemented in 2005 to update rules concerning short sale practices. Regulation SHO established locate and close-out standards that are primarily aimed at preventing the opportunity for traders to engage in naked short selling and other unethical practices.
The World Economic Forum (WEF) is an international organization headquartered in Geneva, Switzerland that brings together its membership on a yearly basis to discuss major issues concerning the world political economy. These include but are not limited to issues of politics, economics, social, and environmental concerns.
Operating earnings are the profit earned after subtracting from revenues only those expenses that are directly associated with operating the business, such as the cost of goods sold (COGS), general and administration (G&A), selling and marketing, research and development, depreciation, and other operating costs. Operating earnings are an important measure of profitability. Because this metric excludes non-operating expenses, such as interest and taxes, it enables an assessment of the company’s core business profitability.