Nakahara Prize
DefinitionThe Nakahara Prize is an annual award given by the Japanese Economic Association to Japanese economists under the age of 45 whose work has gained international recognition. The prize was created in 1995, and named after its sponsor Nobuyuki Nakahara. The aim of the prize is honoring and encouraging young economists to publish internationally well-recognized papers and books. In...
Tail Risk
DefinitionTail risk is the additional risk of an asset or portfolio of assets moving more than 3 standard deviations from its current price, above the risk of a normal distribution. Prudent asset managers are typically cautious with tail risk involving losses which could damage or ruin portfolios, and not the beneficial tail risk of outsized gains. Tail Risk ...
PL Statement
Source: WikipediaLast Sourced: 2021-02-01This Article has been Edited for Accessibility Further Reading Financial ratios as a means of forecasting bankruptcy - www.jstor.org Testing a model of Islamic corporate financial reports: some experimental evidence - journals.iium.edu.my Method for teaching economics, management and accounting - patents.google.com Predicting the near term profit and loss statement with an econometric model: A feasibility...
Macaulay Duration
What is The 'Macaulay Duration' The Macaulay duration is the weighted average term to maturity of the cash flows from a bond. The weight of each cash flow is determined by dividing the present value of the cash flow by the price. Macaulay duration is frequently used by portfolio managers who use an immunization strategy. Explaining...
Paired Shares
What is 'Paired Shares' The stock of two separate companies that are under the management or supervision of a single corporation. Paired shares are traded as if they are one stock and are sold as one unit. The stock of both companies typically appears on one stock certificate, with each stock printed on one side of the...
Radner Equilibrium
What is 'Radner Equilibrium' A theory suggesting that if economic decision makers have unlimited computational capacity for choice among strategies, then even in the face of uncertainty about the economic environment, an optimal allocation of resources based on competitive equilibrium can be achieved. Radner Equilibrium was introduced by American economist Roy Radner in 1968, and explores the...
Year-End Bonus
What is 'Year-End Bonus' A reward paid to an employee at the end of the year. Many year-end bonuses are tied to performance metrics and the amount can vary depending whether certain milestones are met. Year-end bonuses are usually made up of lump-sum payments used to reward the individual for hard work and dedication. Explaining 'Year-End...
Quadrix
What is 'Quadrix' A stock valuation system that uses over 100 variables in seven major categories to determine the value of a stock. The overall score for a particular stock is determined by a weighted average of all 100 variables. Explaining 'Quadrix' The seven categories of variables used in quadrix are momentum, quality, value, financial strength, forecasted earnings, performance, and volume. Further Reading ...
Yankee Market
What is 'Yankee Market' A slang term for the stock market in the United States. Yankee market is usually used buy non-U.S. residents and refers to the slang term for an American - a Yankee. Explaining 'Yankee Market' The term Yankee market was used in business slang but has become widely accepted, much like...
Objective Probability
What is 'Objective Probability' The probability that an event will occur based an analysis in which each measure is based on a recorded observation, rather than a subjective estimate. Objective probabilities are a more accurate way to determine probabilities than observations based on subjective measures, such as personal estimates. Explaining 'Objective Probability' For example,...