CAN SLIM
DefinitionCAN SLIM refers to the acronym developed by the American stock research and education company Investor's Business Daily. IBD claims CANSLIM represents the seven characteristics that top-performing stocks often share before making their biggest price gains. It was developed in the 1950s by Investor's Business Daily founder William O'Neil. The method was named the top-performing investment strategy from 1998-2009...
Yacht Insurance
Yacht Insurance What is 'Yacht Insurance ' An insurance policy that provides indemnity liability coverage on pleasure boats. Yacht insurance includes liability for bodily injury or damage to the property of others and damage to personal property on the boat. Depending on the insurance provider, this insurance could also include gas delivery, towing and assistance if...
Racketeering
DefinitionA racket is a planned or organized criminal act, usually in which the criminal act is a form of business or a way to earn illegal or extorted money regularly or briefly but repeatedly. A racket is often a repeated or continuous criminal operation. Racketeering What is 'Racketeering' Racketeering, often associated with organized crime, is the act...
R-Squared
What is 'R-Squared' R-squared is a statistical measure that represents the percentage of a fund or security's movements that can be explained by movements in a benchmark index. For example, an R-squared for a fixed-income security versus the Barclays Aggregate Index identifies the security's proportion of variance that is predictable from the variance of the Barclays Aggregate...
X-Efficiency
What is 'X-Efficiency' X-efficiency is the degree of efficiency maintained by individuals and firms under conditions of imperfect competition. According to the neoclassical theory of economics, under perfect competition individuals and firms must maximize efficiency in order to succeed and make a profit; those who do not will fail and be forced to exit the market. However,...
PPP
Quick Facts The PPP is Purchasing Power Parity Purchasing power parity is used by macro-economic analysts to compare different countries' currencies through a "basket of goods" method. Purchasing power parity allows us to compare standard of living and economic productivity between nations. Some nations change their GDP to account for PPP/ Further Reading Critical success factors...
Zero Balance Account (ZBA)
What is a 'Zero Balance Account - ZBA' A zero balance account (ZBA) is a checking account in which a balance of zero is maintained by automatically transferring funds from a master account in an amount only large enough to cover checks presented. A ZBA is used by corporations to eliminate excess balances in separate accounts and...
Half-Life
What is 'Half-Life' Half-life represents a date in the future when half of the total principal of a mortgage-backed security (MBS) will be paid off. It can also represent the date when half of a person's private mortgage principal is paid off. While an estimate can be made as to what the half-life will be, it is...
Tactical Asset Allocation (TAA)
What is 'Tactical Asset Allocation - TAA' Tactical asset allocation is an active management portfolio strategy that shifts the percentage of assets held in various categories to take advantage of market pricing anomalies or strong market sectors. Explaining 'Tactical Asset Allocation - TAA' To understand tactical asset allocation, one must first understand strategic asset allocation....
Creative Destruction In Economics
Creative destruction, sometimes called Schumpeter's gale, is an idea people studying economics theory say may lead to innovation in the business cycle. Karl Marx argued the devaluation of wealth in periods when capitalism is going through a financial crisis is an inevitable outcome of its wealth creation processes. During the 1950s, the Austrian economist Joseph Schumpeter built on and...