RSI – Relative Strength Index
Relative Strength Index (RSI) is a technical analysis tool that is used by investors to make investment decisions. Developed by J. Welles Wilder, RSI is a momentum oscillator that helps in determining the rate of change of prices. RSI values range from 0 to 100. An RSI of 30 indicates that the asset is oversold while an RSI greater...
XRT
What is 'XRT' A notation on a ticker tape that is used to indicate that a security is trading on an ex-rights basis. When used in conjunction with a security that has just undergone a rights offering, the word is intended to remove any uncertainty that may occur by reaffirming that such rights stay with the seller of the security...
CAPEX – Capital Expenditure
Capital expenditure, also known as capital expense (CAPEX) is defined as the expenses used by companies in acquiring assets for a long term, or making renovations or upgrades which will not be exhausted in a short while. For example, in textile industry, the expenses for the machines and their repairmen are the capital expenditures, as well as the buying...
IESE Business School & Career Opportunities
IESE Business School is one of the most prestigious and well-renowned business schools in the world. It has been ranked as the number one business school in Europe for five consecutive years by The Economist. In addition, IESE also ranks #1 for entrepreneurship and #3 for executive education programs worldwide. So what makes IESE so special? Let's take a...
Baby Boomer Age Wave Theory
Baby Boomer Age Wave Theory What is 'Baby Boomer Age Wave Theory ' An economic theory popularized by economist and writer Harry Dent, who concludes that the U.S. and other European markets will peak between 2008 and 2012. This is based on Dent's finding that a human's consumer spending habits peak by age 50; therefore, as...
TARP Bonuses
What are TARP bonuses and how do they work TARP bonuses are payments made to executives of companies that have received financial assistance from the Troubled Asset Relief Program (TARP). These bonuses are intended to incentivize these executives to successfully turnaround their struggling companies. In order to receive a TARP bonus, an executive must first meet certain performance goals set...
Fabless Company
What is 'Fabless Company' The Global Semiconductor Alliance defines fabless as follows: Explaining 'Fabless Company' The fabless model is an attractive and popular option for many semiconductor companies. By adopting a fabless business strategy, a company can focus time and resources on the design of innovative integrated circuits, while avoiding the high cost of building,...
Y-Share
What is 'Y-Share' A class of mutual fund shares that often has a high minimum investment, such as $500,000 per lot, and the added benefit of waived or limited load charges and fees. Due to the high minimum investment required, Y-shares are often only accessible by large institutional investors. Explaining 'Y-Share' Many...
ABC Agreement
What is 'ABC Agreement' An agreement made between a purchasing member with a seat on the NYSE and the firm in which he or she works. With the approval of the NYSE, this agreement stipulates that the employee of the firm may: Explaining 'ABC Agreement' ABC agreements are important because the firm pays for...
Daily Factor
What is 'Daily Factor' A decimal representing the portion of an annual yield earned in one day. Daily factors are often reported alongside current annualized yield figures, and can be translated back to the current yield by multiplying the number by 365. Explaining 'Daily Factor' For example, a certificate...