Investments glossary terminology
A general partnership is a business arrangement by which two or more individuals agree to share in all assets, profits, and financial and legal liabilities of a jointly-owned business. In a general partnership, partners agree to unlimited liability, meaning liabilities are not capped and can be paid through the seizure of an owner’s assets. Furthermore, any partner may be sued for the business’s debts.
A service charge is a fee collected to pay for services related to the primary product or service being purchased. The charge is usually added at the time of the transaction.
Up-and-in options are a type of exotic option that is often made available through specialized brokers to high-end clients in the OTC markets. The option features both a strike price and a barrier level. As the name suggests, the buyer of the option will benefit once the price of the underlying rises high enough to reach (knock in) the designated barrier price level. Otherwise the option will expire worthless.
A service charge is a fee collected to pay for services related to the primary product or service being purchased. The charge is usually added at the time of the transaction.
Negative carry is a condition in which the cost of holding an investment or security exceeds the income earned while holding it. A negative carry trade or investment is often undesirable to professional portfolio managers because it means the investment is losing money as long as the principal value of the investment remains the same (or falls). However, many investors and professionals regularly enter into such conditions where they anticipate a significant payoff from holding the investment over time.
Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.
The term housing starts refers to the number of new residential construction projects that begin during any particular month. As such, it’s a key economic indicator. Housing start statistics are released on or around the 17th of each month by the U.S. Commerce Department. The report includes building permits, housing starts, and housing completions data—all of which are compiled from surveys of homebuilders across the country.
H-shares are shares of Chinese mainland companies that are listed on the Hong Kong Stock Exchange or other foreign exchange. Although H-shares are regulated by Chinese law, they are denominated in Hong Kong dollars and are traded in the same way as other equities on the Hong Kong exchange. H-shares are available for more than 230 Chinese companies giving investors access to most of the major economic sectors, such as financials, industrials, and utilities.
The money factor is a method for determining the financing charges on a lease with monthly payments. The money factor can be translated into the more common annual percentage rate (APR) by multiplying the money factor by 2,400.
The money factor is a method for determining the financing charges on a lease with monthly payments. The money factor can be translated into the more common annual percentage rate (APR) by multiplying the money factor by 2,400.