The national currency of Jordan is the Dinar. The currency abbreviation or currency symbol for the Jordanian Dinar is denoted by JOD. The dinar has smaller denominations or subunits. In particular, one dinar is equal to 10 dirhams, 100 qirshes, and 1,000 fils. The dinar is also circulated on Israel’s West Bank.
A majority shareholder is a person or entity that owns and controls more than 50 percent of a company’s outstanding shares. It gives the person or entity significant sway over the direction of the company, if their shares are voting shares, since they can hold a vote and then vote in favor of their desired direction.
The Lilly Ledbetter Fair Pay Act of 2009 is a law enacted by Congress that bolstered worker protections against pay discrimination. The act allows individuals who face pay discrimination to seek rectification under federal antidiscrimination laws. The law clarifies that discrimination based on age, religion, national origin, race, sex, and disability will “accrue” every time the employee receives a paycheck that is deemed discriminatory. It was the first bill that President Barack Obama signed into law and is one of a number of federal laws designed to protect the rights of workers.
A bond ladder is a portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of purchasing several smaller bonds with varying dates of maturity rather than one large bond with a single maturity date is to minimize interest-rate risk, increase liquidity, and diversify credit risk.
Pure risk is a type of risk that cannot be controlled and has two outcomes: complete loss or no loss at all. There are no opportunities for gain or profit when pure risk is involved.
An equity derivative is a financial instrument whose value is based on equity movements of the underlying asset. For example, a stock option is an equity derivative, because its value is based on the price movements of the underlying stock. Investors can use equity derivatives to hedge the risk associated with taking long or short positions in stocks, or they can use them to speculate on the price movements of the underlying asset.
A contingent asset is a potential economic benefit that is dependent on future events out of a company’s control. Not knowing for certain whether these gains will materialize, or being able to determine their precise economic value, means these assets cannot be recorded on the balance sheet. However, they can be reported in the accompanying notes of financial statements, provided that certain conditions are met. A contingent asset is also known as a potential asset.
The Office of the Superintendent of Financial Institutions (OSFI) is an independent agency of the Government of Canada. The agency is responsible for the supervision and regulation of banks, insurance companies, and trust and loan companies. They also regulate private pension plans which are subject to federal oversight. The agency’s stated goals are to protect depositors, policyholders, the financial institution (FI), creditors and pension plan members while allowing financial institutions to compete and take reasonable risks.
Fixed capital includes the assets and capital investments, such as property, plant, and equipment (PP&E), that are needed to start up and conduct business, even at a minimal stage. These assets are considered fixed in that they are not consumed or destroyed during the actual production of a good or service but have a reusable value. Fixed-capital investments are typically depreciated on the company’s accounting statements over a long period of time—up to 20 years or more.
Exogenous growth, a key tenet of neoclassical economic theory, states that growth is fueled by technological progress independent of economic forces. Both the exogenous growth and endogenous growth theories are part of the neoclassical growth models.