Winsorized mean is a method of averaging that initially replaces the smallest and largest values with the observations closest to them. This is done to limit the effect of abnormal extreme values, or outliers, on the calculation. After replacing the values, arithmetic mean formula is then used to calculate the winsorized mean.
New Keynesian Economics is a modern macroeconomic school of thought that evolved from classical Keynesian economics. This revised theory differs from classical Keynesian thinking in terms of how quickly prices and wages adjust.
A value-added reseller is a firm that enhances the value of third-party products by adding customized products or services for resale to end-users. Value-added resellers play a prominent role in the information technology (IT) industry, providing additional hardware, installation services, consulting, troubleshooting, or other related products or services on top of core products.
The cash ratio is a measurement of a company’s liquidity, specifically the ratio of a company’s total cash and cash equivalents to its current liabilities. The metric calculates a company’s ability to repay its short-term debt with cash or near-cash resources, such as easily marketable securities. This information is useful to creditors when they decide how much money, if any, they would be willing to loan a company.
An inflection point is an event that results in a significant change in the progress of a company, industry, sector, economy, or geopolitical situation and can be considered a turning point after which a dramatic change, with either positive or negative results, is expected to result. Companies, industries, sectors, and economies are dynamic and constantly evolving. Inflection points are more significant than the small day-to-day progress typically made, and the effects of the change are often well known and widespread.
Often conflated with socially responsible investing (SRI), green investments are investment activities that focus on companies or projects committed to the conservation of natural resources, the production and discovery of alternative energy sources, the implementation of clean air and water projects, or other environmentally conscious business practices. Green investments may fit under the umbrella of SRI, but they are fundamentally much more specific.
The modified internal rate of return (MIRR) assumes that positive cash flows are reinvested at the firm’s cost of capital and that the initial outlays are financed at the firm’s financing cost. By contrast, the traditional internal rate of return (IRR) assumes the cash flows from a project are reinvested at the IRR itself. The MIRR, therefore, more accurately reflects the cost and profitability of a project.
Inheritance refers to the assets that an individual bequeaths to his or her loved ones after he or she passes away. An inheritance may contain cash, investments such as stocks or bonds, and other assets such as jewelry, automobiles, art, antiques, and real estate.
Origination is the multi-step process that every individual must go through to obtain a mortgage or home loan. The term also applies to other types of amortized personal loans. Origination is often a lengthy process and it’s overseen by the Federal Deposit Insurance Corporation (FDIC) for compliance with Title XIV of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Percentage change is a simple mathematical concept that represents the degree of change over time. It is used for many purposes in finance, often to represent the price change of a security.