Easement
What is 'Easement' Easement is a real estate concept that defines a scenario in which one party uses the property of another party, where a fee is paid to the owner of the property in return for the right of easement. Easements are often purchased by public utility companies for the right to erect telephone poles or...
Eclectic Paradigm
DefinitionThe eclectic paradigm is a theory in economics and is also known as the OLI-Model or OLI-Framework. It is a further development of the internalization theory and published by John H. Dunning in 1979. Eclectic Paradigm What is an 'Eclectic Paradigm' An eclectic paradigm is a theory that provides a three-tiered framework for a company to follow...
Earnings Momentum
What is 'Earnings Momentum' When corporate earnings per share (EPS) growth is accelerating or decelerating from the prior fiscal quarter or fiscal year. Earnings momentum typically coincides with accelerating revenues and/or expanding margins caused by increased sales, cost improvements or overall market expansion. Explaining 'Earnings Momentum' Because of the quarterly...
Imperfect Market
DefinitionIn economics, specifically general equilibrium theory, a perfect market is defined by several idealizing conditions, collectively called perfect competition. In theoretical models where conditions of perfect competition hold, it has been theoretically demonstrated that a market will reach an equilibrium in which the quantity supplied for every product or service, including labor, equals the quantity demanded at the current...
Capitalism
Capitalism is one of the systems of political and economic governance that is based on the idea of private ownership of modes of production and capital. In this system, the production of goods and services is done for the sole sake of profit. The goods and services are produced in accordance with the demand and supply from the general...
Call Loan
What is 'Call Loan' A loan provided to a brokerage firm and used to finance margin accounts. The interest rate on a call loan is calculated daily. The resulting interest rate is referred to as the call loan rate. Explaining 'Call Loan' Call loans use securities as collateral for the loan. It is important...
Same Property Rule
What is 'Same Property Rule' A regulation relating to IRA rollovers stipulating that whenever a financial asset is withdrawn from a retirement account or IRA (for the purpose of funding a new IRA, for example), it must be rolled over into the same property (or format) of an IRA. Unless the party involved is over 59.5 years...
Korea Stock Exchange (KSC) .KS
What is 'Korea Stock Exchange (KSC) .KS' The Stock Market Division of Korea Exchange, formerly an independent South Korean exchange, was established in 1956. Some of its milestones include the launching of the Stock Index Futures Market in 1996 and the Stock Index Options Market in 1997, as well as the adoption of electronic trading in 1988,...
Reaction
What is 'Reaction' A reversal in the movement of a security's price. Reaction is most often associated with a downward movement in the price of a security after a period of upward movement, as investors sell off shares or decrease the volume of buy orders for fear of the security being overvalued. Reactions are likely to be...
Federal Funds
What are 'Federal Funds' Federal funds, often referred to as fed funds, are excess reserves that commercial banks and other financial institutions deposit at regional Federal Reserve banks; these funds can be lent, then, to other market participants with insufficient cash on hand to meet their lending and reserve needs. The loans are unsecured and are made...