A monetarist is an economist who holds the strong belief that the money supply, including physical currency, deposits and credit, is the primary factor affecting demand in an economy. Consequently, the economy’s performance, its growth or contraction, can be regulated by changes in the money supply.
High-speed data feeds, which transmit data such as price quotes and yields in real-time and without delays, are used in high-frequency trading for real-time data analysis.
Disposable income, also known as disposable personal income (DPI), is the amount of money that households have available for spending and saving after income taxes have been accounted for. Disposable personal income is often monitored as one of the many key economic indicators used to gauge the overall state of the economy.
The financial institutions of Wall Street include a segment called the buy-side. The buy-side professionals work with insurance firms, mutual funds, and pension funds as they purchase large blocks of securities for fund managers.
Specialization is a method of production whereby an entity focuses on the production of a limited scope of goods to gain a greater degree of efficiency. Many countries, for example, specialize in producing the goods and services that are native to their part of the world, and they trade them for other goods and services.
The loss payee is the party to whom the claim from a loss is to be paid. A loss payee can mean several different things; in the insurance industry, the insured, or the party entitled to payment is the loss payee. The insured can expect reimbursement from the insurance carrier in the event of a loss. One example would be if a borrower defaulted on their loan and didn’t pay it.
A beneficiary is any person who gains an advantage and/or profits from something. In the financial world, a beneficiary typically refers to someone eligible to receive distributions from a trust, will, or life insurance policy. Beneficiaries are either named specifically in these documents or have met the stipulations that make them eligible for whatever distribution is specified.
Hidden values are assets that are undervalued on a company’s balance sheet and therefore may not be incorporated into or reflected in the company’s share price. So-called value investors are keen to uncover hidden values on a company’s balance sheet that are often overlooked by the average investor. An asset that is marked at book value but actually worth more in terms of fair market price would be considered a hidden value.
National Insurance Contributions are payments made by employees and employers into the United Kingdom’s National Insurance (NI). National Insurance contributions initially funded programs for the ill and unemployed, and later on eventually paid for state pensions, too. Contributions fall into categories that can either count toward an individual’s eligibility for benefits or are paid without counting towards any type of entitlement depending on the category it falls under.
A price target is an analyst’s projection of a security’s future price. Price targets can pertain to all types of securities, from complex investment products to stocks and bonds. When setting a stock’s price target, an analyst is trying to determine what the stock is worth and where the price will be in 12 or 18 months. Ultimately, price targets depend on the valuation of the company that’s issuing the stock.