Payout refers to the expected financial return or monetary disbursement from an investment or annuity. It may be expressed on an overall or periodic basis as either a percentage of the investment’s cost or in a real dollar amount. Payout can also refer to the period in which an investment or a project is expected to recoup its initial capital investment and become minimally profitable. It is short for time to payout, term to payout, or payout period.
Voodoo economics is a derogatory phrase used by George H. W. Bush in reference to President Ronald Reagan’s economic policies, which came to be known as Reaganomics.
Tranches are pieces of a pooled collection of securities, usually debt instruments, that are split up by risk or other characteristics in order to be marketable to different investors. Each portion, or tranche, is one of several related securities offered at the same time but with varying risks, rewards and maturities to appeal to a diverse range of investors.
Permanent life insurance is an umbrella term for life insurance policies that do not expire. Typically, permanent life insurance combines a death benefit with a savings portion.
Net national product (NNP) is the monetary value of finished goods and services produced by a country’s citizens, overseas and domestically, in a given period. It is the equivalent of gross national product (GNP), the total value of a nation’s annual output, minus the amount of GNP required to purchase new goods to maintain existing stock, otherwise known as depreciation.
Delivered at frontier (DAF) is a term used in international shipping contracts that requires a seller to deliver goods to a border location. The seller is usually responsible for all costs of transporting the goods to the drop-off point for the buyer. The party picking up the goods will usually be importing them and traveling across customs.
KES is the foreign exchange (FX) trading symbol for the Republic of Kenya shilling used in Kenya, the Sudan, and Somalia. The shilling is further divided into 100 cents. Prices often include the abbreviation KSh, as in “100 KSh” to refer to 100 shillings.
Historical volatility (HV) is a statistical measure of the dispersion of returns for a given security or market index over a given period of time. Generally, this measure is calculated by determining the average deviation from the average price of a financial instrument in the given time period. Using standard deviation is the most common, but not the only, way to calculate historical volatility. The higher the historical volatility value, the riskier the security. However, that is not necessarily a bad result as risk works both ways – bullish and bearish.
The Gramm-Leach-Bliley Act of 1999 (GLBA) was a bi-partisan regulation under President Bill Clinton, passed by Congress on November 12, 1999. The GLBA was an attempt to update and modernize the financial industry. The GLBA is most well-known as the repeal of the Glass-Steagall Act of 1933, which stated that commercial banks were not allowed to offer financial services—like investments and insurance-related services—as part of normal operations.
A controller is an individual who has responsibility for all accounting-related activities, including high-level accounting, managerial accounting, and finance activities, within a company. A financial controller typically reports to a firm’s chief financial officer (CFO), although these two positions may be combined in smaller businesses. The duties of a controller include assisting with the preparation of the operating budgets, overseeing financial reporting and performing essential duties relating to payroll.