please tell me what a "the wealth effect" is
Category: glossary by K. I. From Ireland
The premise that when the value of stock portfolios rises due to escalating stock prices, investors feel more comfortable and secure about their wealth, causing them to spend more. For example, economists in 1968 were baffled when a 10% tax hike failed to slow down consumer spending. Later this continued spending was attributed to the wealth effect. While disposable income fell as a result of increased taxes, wealth was rising sharply as the stock market moved up. Undaunted, consumers continued their spending spree. The wealth effect helps to power economies during bull markets. Big gains in people's portfolios can make them feel more secure about their wealth and their spending. However, the relationship between spending and stock market performance is a double-edged sword as poor stock prices in bear markets hurt economic confidence.
what is the "acquired fund fees and expenses"?
Category: glossary by G. Ayala from Virginia Beach, United States
"acquired fund fees and expenses " is A line item in a fund-of-funds' prospectus that shows the operating expenses of the underlying funds. This became a requirement as of January 2007 and this information is found beneath the "Fees and Expenses" heading. A check of Morningstar and Standard & Poor's fund reports indicates that investment research firms are reporting a fund-of-funds' expense ratios with AFFE included. Previously, in many instances, a fund-of-funds' expense ratio was reported as zero, which meant that while there weren't any expenses incurred by the fund-of-funds per se, there would be operating expenses incurred by the various underlying funds in the portfolio. The new AFFE disclosure now fills in that blank.
do you know what "lesser-developed country - lDC" is?
Category: glossary by H. P. From Montgomery, United States
A country that is considered lacking in terms of its economy, infrastructure and industrial base. The population of a lesser-developed country often has a relatively low standard of living, due to low incomes and abundant poverty. Also referred to as "emerging markets". A lesser-developed country is usually poor, as measured by per capita gross domestic product, and unmodernized. LDCs rely primarily on agriculture as a source of income and industrial practices usually contribute to less than 10% of the nation's GDP. Many African and Arab nations are considered to be lesser-developed countries.
please tell me what "operating expense" is
Category: glossary by B. Camacho from Austria
an "operating expense " is A category of expenditure that a business incurs as a result of performing its normal business operations. One of the typical responsibilities that management must contend with is determining how low operating expenses can be reduced without significantly affecting the firm's ability to compete with its competitors. Also known as "OPEX". For example, the payment of employees' wages and funds allocated toward research and development are operating expenses. In the absence of raising prices or finding new markets or product channels in order to raise profits, some businesses attempt to increase the bottom line purely by cutting expenses. While laying off employees and reducing product quality can initially boost earnings and may even be necessary in cases where a company has lost its competitiveness, there are only so many operating expenses that management can cut before the quality of business operations is damaged.
any fx web trading platform that has great language array that you can recommend me of?
Category: platform by U. T. From United Kingdom
We think the best place for your purpose is "FXCM" - their site supports lots of different languages. "FXCM" is offered in Italian, Deutsch, Arabic or Chinese (and any other of a host of other languages).
do you know what "Occupational Pensions Regulatory Authority" is?
Category: glossary by Ethen D. From United States
the "Occupational Pensions Regulatory Authority " is The Authority set up under the Pensions Act 1995 to make occupational pensions more secure.
please define "flight to quality"
Category: glossary by V. Brock from Canada
The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This flight is usually caused by uncertainty in the financial or international markets. However, at other times, this move may be an instance of investors cutting back on the more volatile investments for the conservative ones (i.e. Diversifying) without much consideration of the international markets. For example, during a bear market investors will often move their money out of equities and into government securities and money market funds. Another example is investors moving investments from high-risk countries with political unrest and volatile economic conditions to less risky markets of other countries. One indication of a flight to quality is a dramatic fall of the yield on government securities, which is a result of the increased demand for them.
what is a "nondiscrimination rule"?
Category: glossary by N. French from United States
A clause found in qualified retirement plans stating that all employees of a company must be eligible for the same benefits, regardless of position within the company. The rule keeps plans from being discriminatory toward highly-compensated employees and company executives. Nondiscrimination rules are required for a plan to be considered qualified under the Employee Retirement Income Security Act (ERISA). A company may offer non-qualified plans (meaning that contributions are not tax deductible) that are discriminatory or selective in nature, in addition to standard qualified plans. Nondiscrimination rules must be kept up even when retirement plans such as 401(k)s are amended or transferred to another trustee, according to ERISA guidelines.
please tell me what an "accreting principal swap" is
Category: glossary by Alfredo S. From Monte-Carlo, Monaco
A swap whereby the notional value is increasing over time. This type of swap is used mainly by companies willing to pay a fixed rate in return for an increasing notional as a result of increasing working capital requirements.
do you know what a "trendline" is?
Category: glossary by Ray T. From United States
the "trendline " is A trend in a securitys price or rate, normally upwards or downwards, indicating an imbalance in the supply and demand for the share, or sometimes flat. When there are more sellers than buyers the trend will be downwards and when there are more buyers than