Category: Investments glossary

An accrued expense is an accounting term that refers to an expense that is recognized on the books before it has been paid; the expense is recorded in the accounting period in which it is incurred.. Because accrued expenses represent a company’s obligation to make future cash payments, they are shown on a company’s balance sheet as current liabilities; accrued expenses are also known as accrued liabilities. An accrued expense is only an estimate, and will likely differ from the supplier’s invoice that will arrive at a later date. read more

A night depository is a secured bank drop box where accountholders (usually small business owners or employees) can deposit their daily cash, checks, and credit card slips outside of normal banking hours (usually between 9 AM and 5 PM). The bank will collect the deposits and credit them to the client’s account on the following business day.

Gap analysis is the process companies use to examine their current performance with their desired, expected performance. This analysis is used to determine whether it is meeting expectations and using its resources effectively.

Article 50 is a clause in the European Union’s (EU) Lisbon Treaty that outlines the steps to be taken by a country seeking to leave the bloc voluntarily. Invoking Article 50 kick-starts the formal exit process and allows countries to officially declare their intention to leave the EU. The United Kingdom was the first country to invoke Article 50 after a majority of British voters elected to leave the union in 2016.

A wear and tear exclusion is a provision in an insurance policy that states that the normal deterioration of the insured object is not covered by the insurance policy.

The business cycle describes the rise and fall in output of goods and services in an economy. A measure often used to represent this is the rise and fall in the Gross Domestic Product (GDP), often the real (adjusted for price level change) per person (capita) measure. The term “cycles” might also refer to the rise and fall in debt levels or financial markets.

A killer application, or killer app is a software program with a user-interface perceived as innovative enough to influence computing trends and sales. The term dates to the early development of personal computers and software in the 1980’s when accounting, database and word-processing applications were being developed for mass use. The term killer application may be derived from the fact that such an application was perceived to be innovative enough to overcome the competition and spur sales of both applications and computers running operating systems advanced enough to accommodate the latest innovations. read more

Buy to cover refers to a buy order made on a stock or other listed security to close out an existing short position. A short sale involves selling shares of a company that an investor does not own, as the shares are borrowed from a broker but need to be repaid at some point.

A killer application, or killer app is a software program with a user-interface perceived as innovative enough to influence computing trends and sales. The term dates to the early development of personal computers and software in the 1980’s when accounting, database and word-processing applications were being developed for mass use. The term killer application may be derived from the fact that such an application was perceived to be innovative enough to overcome the competition and spur sales of both applications and computers running operating systems advanced enough to accommodate the latest innovations. read more

In the world of markets, a widow maker is an investment that results in large, potentially devastating losses. It can also refer to a trade that results in a loss for virtually everyone who tries it. In colloquial usage, a widow maker refers to anything with the potential to kill someone quickly. The phrase has historically been used in forestry and medicine.