In the study of probability theory, the central limit theorem (CLT) states that the distribution of sample means approximates a normal distribution (also known as a “bell curve”), as the sample size becomes larger, assuming that all samples are identical in size, and regardless of the population distribution shape.
A good faith estimate (GFE) enables a mortgage consumer to compare offers, understand the actual cost of the loan, and make an informed decision when choosing a loan provider. The GFE lists necessary information about the terms of a mortgage loan which the lender is offering. All lenders are required to use the same standard loan estimate form, and receiving any estimate form is not an obligation to accept a mortgage loan.
Current yield is an investment’s annual income (interest or dividends) divided by the current price of the security. This measure examines the current price of a bond, rather than looking at its face value. Current yield represents the return an investor would expect to earn, if the owner purchased the bond and held it for a year. However, current yield is not the actual return an investor receives if he holds a bond until maturity.
Sterling Overnight Index Average, abbreviated SONIA, is the effective overnight interest rate paid by banks for unsecured transactions in the British sterling market. It is used for overnight funding for trades that occur in off-hours and represents the depth of overnight business in the marketplace.
An employer approach to improving employee health, wellness programs include activities such as company-sponsored exercise, weight-loss competitions, educational seminars, tobacco-cessation programs, and health screenings that are designed to help employees eat better, lose weight, and improve overall physical health. Wellness programs often involve financial incentives for employees, such as lower health insurance premiums or gift cards.
A cash-on-cash return is a rate of return often used in real estate transactions that calculates the cash income earned on the cash invested in a property. Put simply, cash-on-cash return measures the annual return the investor made on the property in relation to the amount of mortgage paid during the same year. It is considered relatively easy to understand and one of the most important real estate ROI calculations.
Globex is an electronic trading platform – the first of its kind – used for derivative, futures, options and commodity contracts across all asset classes. Developed for the Chicago Mercantile Exchange, CME Globex (as it is officially known) operates continuously, unrestricted by geographic borders or time zones.
The theory of the firm is the microeconomic concept founded in neoclassical economics that states that a firm exists and make decisions to maximize profits. The theory holds that the overall nature of companies is to maximize profits meaning to create as much of a gap between revenue and costs. The firm’s goal is to determine pricing and demand within the market and allocate resources to maximize net profits.
The Gartley pattern is a harmonic chart pattern, based on Fibonacci numbers and ratios, that helps traders identify reaction highs and lows. In his book Profits in the Stock Market, H.M. Gartley laid down the foundation for harmonic chart patterns in 1932. The Gartley pattern is the most commonly used harmonic chart pattern. Larry Pesavento later applied Fibonacci ratios to the pattern in his book Fibonacci Ratios with Pattern Recognition.
The 83(b) election is a provision under the Internal Revenue Code (IRC) that gives an employee, or startup founder, the option to pay taxes on the total fair market value of restricted stock at the time of granting.