A poverty trap is a mechanism that makes it very difficult for people to escape poverty. A poverty trap is created when an economic system requires a significant amount of capital in order to earn enough to escape poverty. When individuals lack this capital, they may also find it difficult to acquire it, creating a self-reinforcing cycle of poverty.
An over-limit fee is a penalty charged by a credit card company if a credit card user exceeds the card’s credit limit. Over-limit fees are typically $25 for the first over-limit charge and $35 if you go over the limit a second time within the next six months, though credit card issuers are free to determine their own fees as long as they are reasonable in relation to the cardholder’s over-limit activity.
Homogeneous expectations is an assumption, expressed in Harry Markowitz’s Modern Portfolio Theory (MPT), that all investors have the same expectations and make the same choices in a given situation.
The overnight rate is the interest rate at which a depository institution (generally banks) lends or borrows funds with another depository institution in the overnight market. In many countries, the overnight rate is the interest rate the central bank sets to target monetary policy. In most circumstances, the overnight rate is the lowest available interest rate, and as such, it is only available to the most creditworthy institutions.
The Uniform Consumer Credit Code (UCCC) is a code of conduct that governs consumer credit transactions. It provides guidelines for laws related to the purchase and use of all types of credit products from mortgages to credit cards. It is intended to protect consumers who use credit from fraud and misinformation.
Overhang is a measure of the potential dilution to which common shareholders are exposed due to possible awards of stock-based compensation. It is usually represented as a percentage and is calculated as stock options granted, plus the remaining options to be granted divided by the total shares outstanding.
Loan stock refers to shares of common or preferred stock that are used as collateral to secure a loan from another party. The loan earns a fixed interest rate, much like a standard loan, and can be secured or unsecured. A secured loan stock may also be called a convertible loan stock if the loan stock can be directly converted to common shares under specified conditions and with a predetermined conversion rate, as with an irredeemable convertible unsecured loan stock (ICULS).
Unrestricted net assets are donations to nonprofit organizations that have no strings attached. That is, the assets may be used by the organization for general expenses or any legitimate expenditure.
A legal document that allows an individual’s health information to be used or disclosed to a third party. The waiver is part of a series of patient-privacy measures set forth in the Health Insurance Portability and Accountability Act (HIPAA) of 1996.
The Bombay Stock Exchange (BSE) is the first and largest securities market in India and was established in 1875 as the Native Share and Stock Brokers’ Association. Based in Mumbai, India, the BSE lists close to 6,000 companies and is one of the largest exchanges in the world, along with the New York Stock Exchange (NYSE), Nasdaq, London Stock Exchange Group, Japan Exchange Group, and Shanghai Stock Exchange.