Current liabilities are a company’s short-term financial obligations that are due within one year or within a normal operating cycle. An operating cycle, also referred to as the cash conversion cycle, is the time it takes a company to purchase inventory and convert it to cash from sales. An example of a current liability is money owed to suppliers in the form of accounts payable.
A value fund is a fund that follows a value investing strategy and seeks to invest in stocks that are deemed to be undervalued in price based on fundamental characteristics. Value investing is often compared with growth investing, which focuses on emerging companies with high growth prospects.
A kicker is a right, exercisable warrant, or other feature that is added to a debt instrument to make it more desirable to potential investors by giving the debt holder the potential option to purchase shares of the issuer.
Micromarketing is an approach to advertising that tends to target a specific group of people in a niche market. With micromarketing, products or services are marketed directly to a targeted group of customers.
A monopoly refers to when a company and its product offerings dominate a sector or industry. Monopolies can be considered an extreme result of free-market capitalism in that absent any restriction or restraints, a single company or group becomes large enough to own all or nearly all of the market (goods, supplies, commodities, infrastructure, and assets) for a particular type of product or service. The term monopoly is often used to describe an entity that has total or near-total control of a market.
A held order is a market order that requires prompt execution for an immediate fill. In most cases, the trader is expected to hit the best offer for buy orders or accept the best bid for sell orders. The opposite order type, a not-held order, provides traders with both time and price discretion to try and get a better fill.
In statistics, a type of probability distribution in which all outcomes are equally likely; each variable has the same probability that it will be the outcome. A deck of cards has within it uniform distributions because the likelihood of drawing a heart, a club, a diamond or a spade is equally likely. A coin also has a uniform distribution because the probability of getting either heads or tails in a coin toss is the same.