Investment Terms

Black Friday was a stock market catastrophe that took place on Sept. 24, 1869.
On that day, after a period of rampant speculation, the price of gold plummeted, and the markets crashed. It can also refer to a shopping holiday in the U.S. following Thanksgiving.
This stock market crash was the origin of referring to stock market crashes as black days. Other examples include Black Tuesday, Oct. 29, 1929, when the market fell precipitously, signaling the start of the Great Depression, and Black Monday, Oct. 19, 1987, when the Dow Jones Industrial Average plummeted more than 22%, the largest one-day drop in stock market history.

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Payment for order flow is a form of compensation, usually in terms of fractions of a penny per share, that a brokerage firm receives for directing orders for trade execution to a particular market maker or exchange.
Payment for order flow is common in options markets and is increasingly found in equity transactions.
Equity and options trading has become increasingly complex with the proliferation of exchanges and electronic communication networks.
Although the notorious Bernard Madoff was an early practitioner of payments for order flow, the practice is perfectly legal provided both parties to a PFOF transaction fulfill their duty of best execution for the customer initiating the trade.
According to the U.S. Securities and Exchange Commission, payment for order flow is a method of transferring some of the trading profits from market-making to the brokers that route customer orders to specialists for execution.

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Value investing is an investment strategy that involves picking stocks that appear to be trading for less than their intrinsic or book value. Value investors actively ferret out stocks they think the stock market is underestimating.
They believe the market overreacts to good and bad news, resulting in stock price movements that do not correspond to a company's long-term fundamentals.
The overreaction offers an opportunity to profit by buying stocks at discounted prices—on sale.
The basic concept behind everyday value investing is straightforward: If you know the true value of something, you can save a lot of money when you buy it on sale. Most folks would agree that whether you buy a new TV on sale, or at full price, you’re getting the same TV with the same screen size and picture quality.

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Cryptocurrency custody solutions are independent storage and security systems used to hold large quantities of tokens.
Custody solutions are one of the latest innovations to come out of the cryptocurrency ecosystem and have been expected to herald the entry of institutional capital into the industry.
The main utility of cryptocurrency custody solutions lies in the safeguarding of cryptocurrency assets. Private keys, which are used to conduct transactions or access crypto holdings, are a complex combination of alphanumerics.
They are extremely difficult to remember and can be stolen or hacked. Online wallets are a potential solution but they have also proven susceptible to hacks. The same is true of cryptocurrency exchanges.
Other solutions include storing private keys offline, on paper, or on a hard disk (or other electronic equipment) that is not connected to the Internet. But losing physical custody (or either the paper or electronic equipment) is a real possibility, and in those cases, recovery of the cryptocurrency holdings can be impossible.

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Conflict theory, first developed by Karl Marx, is a theory that society is in a state of perpetual conflict because of competition for limited resources.
Conflict theory holds that social order is maintained by domination and power, rather than by consensus and conformity.
According to conflict theory, those with wealth and power try to hold on to it by any means possible, chiefly by suppressing the poor and powerless.
A basic premise of conflict theory is that individuals and groups within society will work to try to maximize their own wealth and power.

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Capitalism is an economic system in which private individuals or businesses own capital goods. At the same time, business owners (capitalists) employ workers (labor) who only receive wages; labor does not own the means of production but only uses them on behalf of the owners of capital.
The production of goods and services under capitalism is based on supply and demand in the general market—known as a market economy—rather than through central planning—known as a planned economy or command economy.
The purest form of capitalism is free market or laissez-faire capitalism. Here, private individuals are unrestrained. They may determine where to invest, what to produce or sell, and at which prices to exchange goods and services. The laissez-faire marketplace operates without checks or controls.

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Cryptocurrency difficulty is a measure of how difficult it is to mine a block in a blockchain for a particular cryptocurrency. A high cryptocurrency difficulty means it takes additional computing power to verify transactions entered on a blockchain—a process called mining.
Cryptocurrency difficulty is a parameter that bitcoin and other cryptocurrencies use to keep the average time between blocks steady as the network's hash power changes. Cryptocurrency difficulty is important since a high difficulty can help secure the blockchain network against malicious attacks.

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The term price controls refer to the legal minimum or maximum prices set for specified goods. Price controls are normally mandated by the government in the free market.
They are usually implemented as a means of direct economic intervention to manage the affordability of certain goods and services, including rent, gasoline, and food. Although it may make certain goods and services more affordable, price controls can often lead to disruptions in the market, losses for producers, and a noticeable change in quality.
Minimums are called price floors while maximums are called price ceilings.
These controls are only effective on an extremely short-term basis.1
Over the long term, price controls can lead to problems such as shortages, rationing, inferior product quality, and illegal markets.2

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The term forbearance refers to the temporary postponement of loan payments, typically for a mortgage or student loan.
Lenders and other creditors grant forbearance as an alternative to forcing a property into foreclosure or leaving the borrower to default on the loan.
The companies that hold loans and their insurers are often willing to negotiate forbearance agreements because the losses caused by foreclosures or defaults typically fall on them.
Although it is primarily used for student loans and mortgages, forbearance is an option for any loan.
It gives the debtor extra time to repay what they owe. This helps struggling borrowers and benefits the lender, who frequently loses money on foreclosures and defaults after paying the fees.
Loan servicers may be less willing to work with borrowers on forbearance relief because they do not bear as much financial risk.

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A generation-skipping trust is a type of legally binding trust agreement in which the contributed assets are passed down to the grantor's grandchildren, thus skipping the next generation, the grantor's children.
By passing over the grantor's children, the assets avoid the estate taxes on an individual's property upon his or her death that would apply if the children directly inherited them.
Generation-skipping trusts are effective wealth-preservation tools for individuals with significant assets and savings.
Because a generation-skipping trust effectively transfers assets from the grantor's estate to grandchildren, the grantor's children never take title to the assets. This is what allows the grantor to avoid the estate taxes that would apply if the assets came into the possession of the next generation first.

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