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Investments glossary

Partnership

A partnership is a formal arrangement by two or more parties to manage and operate a business and share its profits.

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Investments glossary

ISM Manufacturing Index

ISM Manufacturing Index, which used to be called Purchasing Manager’s Index (PMI), measures manufacturing activity based on a monthly survey, conducted by Institute for Supply Management (ISM), of purchasing managers at more than 300 manufacturing firms.

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Investments glossary

Yield-Based Option

Yield-based option is a type of option that derives its value from the difference between the exercise price (expressed as a percentage) and the yield of the underlying debt instrument. Yield-based options are settled in cash.

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Investments glossary

Relative Strength Index (RSI)

The relative strength index (RSI) is a momentum indicator used in technical analysis that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset. The RSI is displayed as an oscillator (a line graph that moves between two extremes) and can have a reading from 0 to 100. The indicator was originally developed by J. Welles Wilder Jr. and introduced in his seminal 1978 book, New Concepts in Technical Trading Systems.

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Investments glossary

Health Insurance Marketplace

The health insurance marketplace is a platform which offers insurance plans to individuals, families or small businesses. The Affordable Care Act of 2010 established the marketplace as a means to achieve maximum compliance with the mandate that all Americans carry some form of health insurance. Many states offer their own marketplaces, while the federal government manages an exchange open to residents of other states.

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Investments glossary

Income Stock

An income stock is an equity security that pays regular, often steadily increasing dividends. Income stocks usually offer a high yield that may generate the majority of the security’s overall returns. While there is no specific breakpoint for classification, most income stocks have lower levels of volatility than the overall stock market, and offer higher-than-market dividend yields.

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Investments glossary

International Labor Organization (ILO)

The International Labor Organization is a United Nations (UN) agency that aims to promote decent work throughout the world.

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Investments glossary

Employment Insurance (EI)

Employment Insurance (EI) is an unemployment insurance program in Canada that allows individuals who have recently lost a job to receive temporary financial assistance. Employment insurance can also be extended to individuals who are unable to work because of illness or who are caring for a young child or a seriously ill family member. In addition to financial assistance, the program assists the unemployed with job search services.

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Investments glossary

Nonrenewable Resources

A nonrenewable resource is a natural substance that is not replenished with the speed at which it is consumed. It is a finite resource.

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Investments glossary

Fiat Money

Fiat money is government-issued currency that is not backed by a physical commodity, such as gold or silver, but rather by the government that issued it. The value of fiat money is derived from the relationship between supply and demand and the stability of the issuing government, rather than the worth of a commodity backing it as is the case for commodity money. Most modern paper currencies are fiat currencies, including the U.S. dollar, the euro, and other major global currencies.