A financial plan is a document containing a person’s current money situation and long-term monetary goals, as well as strategies to achieve those goals. A financial plan may be created independently or with the help of a certified financial planner.
Watered stock is shares of a company that are issued at a much greater value than its underlying assets, usually as part of a scheme to defraud investors, and are thus artificially inflated in value.
Scope refers to the combined objectives and requirements needed to complete a project. The term is often used in project management. Properly defining the scope of a project allows managers to estimate costs and the time required to finish the project. That’s what makes scope management such an important part of business—it saves both time and money. There are generally two different types of scope in project management. These are project and product scope.
An allotment commonly refers to the allocation of shares granted to a participating underwriting firm during an initial public offering (IPO). Remaining surpluses go to other firms that have won the bid for the right to sell the remaining IPO shares. There are several types of allotment that arise when new shares are issued and allocated to either new or existing shareholders.
The Internal Revenue Service (IRS) standard deduction is the portion of income not subject to tax that can be used to reduce your tax bill. You can take the standard deduction only if you do not itemize your deductions using Schedule A of Form 1040 to calculate taxable income. The amount of your standard deduction is based on your filing status, age, and whether you are disabled or claimed as a dependent on someone else’s tax return.1
In the United States, a national bank is a commercial bank. The comptroller of the currency of the U.S. Treasury will charter a national bank. This institution will function as a member bank of the Federal Reserve and is an investing member of its district Federal Reserve Bank. National banks may facilitate the auction process of U.S. Treasury bonds. It is essential that they are members of the Federal Deposit Insurance Corporation (FDIC).
DAGMAR (defining advertising goals for measured advertising results) is a marketing model used to establish clear objectives for an advertising campaign and measure its success. The DAGMAR model was introduced by Russell Colley in a 1961 report to the Association of National Advertisers and was expanded upon in 1995 in a book by Solomon Dutka.
A rights offering (rights issue) is a group of rights offered to existing shareholders to purchase additional stock shares, known as subscription warrants, in proportion to their existing holdings. These are considered to be a type of option since it gives a company’s stockholders the right, but not the obligation, to purchase additional shares in the company.
An index swap refers to a hedging contract in which a party exchanges a predetermined cash flow with a counter-party on a specified date. A debt, equity or other price index is used as the agreed exchange for one side of this swap. An overnight index swap applies an overnight rate index such as the federal funds or Libor rates. Index swaps are specialized groups of conventional fixed rate swaps, with terms that can be set from three months to more than a year.
A rights offering (rights issue) is a group of rights offered to existing shareholders to purchase additional stock shares, known as subscription warrants, in proportion to their existing holdings. These are considered to be a type of option since it gives a company’s stockholders the right, but not the obligation, to purchase additional shares in the company.