Large Value Transfer System (LVTS)
What is 'Large Value Transfer System - LVTS' An electronic wire payment system in Canada, facilitating the transfer of funds between large financial institutions, including the central Bank of Canada. Explaining 'Large Value Transfer System - LVTS' LVTS transactions can be performed for banks or their clients. These transactions are instant, which improves the...
Reaganomics
Definition Reaganomics is the term used to describe the economic policies advocated by former United States President Ronald Reagan throughout the 1980s. These policies are frequently connected with supply-side economics, which political opponents refer to as trickle-down economics or voodoo economics, and free-market economics, which political supporters refer to as free-market economics. What is 'Reaganomics' When referring to the economic policies of...
Passive Foreign Investment Company (PFIC)
What is a 'Passive Foreign Investment Company - PFIC' A passive foreign investment company (PFIC) is a foreign-based corporation that exhibits either one of two conditions. The first condition, based on income, is that at least 75% of the corporation's gross income is "passive," income that is derived from investments rather than from the company's regular business...
Wealth
What is 'Wealth' Wealth measures the value of all the assets of worth owned by a person, community, company or country. Wealth is determined by taking the total market value of all physical and intangible assets owned, then subtracting all debts. Essentially, wealth is the accumulation of resources. Specific people, organizations and nations are said to be wealthy...
Price-to-Book Ratio
The price-to-book ratio, also known as P/B ratio or price-to-equity ratio, is a type of financial ratio which is primarily used to compare the organization’s net assets that are available for common stockholders, relative to the actual sales price of the stocks. In other words, this ratio is used to evaluate a share’s market value to the shares book...
Kill
What is 'Kill' To cancel a trade or order that has been placed, but not filled. A trader or investor may desire to kill an unfilled order when the market has moved against him or her (or merely because he or she has changed his or her mind), especially if the order is a market order rather...
Raw Materials
DefinitionA raw material, also known as a feedstock or most correctly unprocessed material, is a basic material that is used to produce goods, finished products, energy, or intermediate materials which are feedstock for future finished products. As feedstock, the term connotes these materials are bottleneck assets and are highly important with regard to producing other products. An example of...
Quality Control
What is 'Quality Control' Quality control is a process through which a business seeks to ensure that product quality is maintained or improved and manufacturing errors are reduced or eliminated. Quality control requires the business to create an environment in which both management and employees strive for perfection. This is done by training personnel, creating benchmarks for...
Underconsumption
DefinitionIn underconsumption theory in economics, recessions and stagnation arise due to inadequate consumer demand relative to the amount produced. It means that there is an overproduction and a demand crisis. The theory formed the basis for the development of Keynesian economics and the theory of aggregate demand after the 1930s. Underconsumption What is 'Underconsumption' The purchase of...
Unconventional Oil
DefinitionUnconventional oil is petroleum produced or extracted using techniques other than the conventional method. Oil industries and governments across the globe are investing in unconventional oil sources due to the increasing scarcity of conventional oil reserves. Unconventional oil and gas have alreadymade adentininternational energy linkages by reducing US energy import dependency. Unconventional Oil What is 'Unconventional Oil' ...