National Credit Union Administration (NCUA)
What is 'National Credit Union Administration - NCUA' An agency of the United States federal government that was created to monitor federal credit unions across the country. One of its major responsibilities is running the National Credit Union Share Insurance Fund (NCUSIF), which uses tax dollars to insure the deposits at all federal credit unions. ...
Naked Shorting
DefinitionIn finance, a short sale is the sale of an asset that the seller does not own. The seller effects such a sale by borrowing the asset in order to deliver it to the buyer. Subsequently, the resulting short position is "covered" when the seller repurchases the asset in a market transaction and delivers the purchased asset to the...
Insurance
Definition Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss. Source: Wikipedia Last Sourced: 2021-02-01 This Article has been Edited for Accessibility Insurance Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the...
Management Tenure
What is 'Management Tenure' The length of time that a manager(s) has been at the helm of a mutual fund. A long-term fund performance record, preferably of five to 10 years, is a key indicator of a fund manager's investing abilities. Explaining 'Management Tenure' Mutual fund investors are best served by investment managers who...
Manufacturing Resource Planning (MRP II)
What is 'Manufacturing Resource Planning - MRP II' Manufacturing Resource Planning (MRP II) is an integrated information system used by businesses. Manufacturing Resource Planning (MRP II) evolved from early Materials Requirement Planning (MRP) systems by including the integration of additional data, such as employee and financial needs. The system is designed to centralize, integrate and process information...
Above Full-Employment Equilibrium
What is 'Above Full-Employment Equilibrium' A macroeconomic term used to describe the real gross domestic product (GDP) is currently in excess of its long-run average, or some other historical measure. Accordingly, the amount that the current real GDP is greater then the historic average is called an inflationary gap, as this will create inflationary pressures in this...
Same-Day Funds
What are same-day funds and what do they mean for businesses When a business owner hears the term "same-day funds," they may think it refers to the amount of money they have on hand to meet needs that arise throughout the course of a day. However, same-day funds actually refer to a type of merchant account where payments are processed...
Magic Formula Investing
DefinitionMagic formula investing is a term referring to an investment technique outlined by Joel Greenblatt that uses the principles of value investing. Magic Formula Investing What is 'Magic Formula Investing' A money-making strategy that teaches investors a common-sense method for value investing in the stock market that is designed to beat the market's average annual returns. The...
Absolute Return Index
What is 'Absolute Return Index' A stock index designed to measure absolute returns. The absolute return index is actually a composite index made up of five other indexes. This index is used to compare the absolute returns posted by the hedge fund market as a whole against individual hedge funds. Explaining 'Absolute Return Index' ...
Backup Withholding
What is 'Backup Withholding' Backup withholding is the tax that is levied on investment income, at an established tax rate, as the investor withdraws it. Backup withholding helps to ensure that government tax-collecting agencies (such as the IRS or Canada Revenue Agency) will be able to receive income taxes owed to them from investors' earnings. Backup withholding may be applied...