Investment Terms

In accounting, impairment is a permanent reduction in the value of a company asset. It may be a fixed asset or an intangible asset.
When testing an asset for impairment, the total profit, cash flow, or other benefit that can be generated by the asset is periodically compared with its current book value.
If the book value of the asset exceeds the future cash flow or other benefit of the asset, the difference between the two is written off, and the value of the asset declines on the company's balance sheet.
Impairment is most commonly used to describe a drastic reduction in the recoverable value of a fixed asset.
An asset's carrying value, also known as its book value, is the value of the asset net of accumulated depreciation that is recorded on a company's balance sheet.

Become a supporter of this podcast: https://www.spreaker.com/podcast/investment-terms--4432332/support.

The Breadth Thrust Indicator is a technical indicator used to ascertain market momentum.
It is computed by calculating the number of advancing issues on an exchange, such as the New York Stock Exchange divided by the total number of issues (advancing + declining) on it, and generating a 10-day moving average of this percentage.
The indicator signals the start of a potential new bull market when it moves from a level of below 40% which indicates an oversold market to a level above 61.5% within any 10-day period.
This is a rarely occurring sentiment, which carries tremendous import with market watchers.
The indicator is all about how quickly the NYSE's advancing and declining numbers go from poor to great in a compressed time period.

Become a supporter of this podcast: https://www.spreaker.com/podcast/investment-terms--4432332/support.

A buyback, also known as a share repurchase, is when a company buys its own outstanding shares to reduce the number of shares available on the open market.
Companies buy back shares for a number of reasons, such as to increase the value of remaining shares available by reducing the supply or to prevent other shareholders from taking a controlling stake.
A buyback allows companies to invest in themselves. Reducing the number of shares outstanding on the market increases the proportion of shares owned by investors.
A company may feel its shares are undervalued and do a buyback to provide investors with a return. And because the company is bullish on its current operations, a buyback also boosts the proportion of earnings that a share is allocated.

Become a supporter of this podcast: https://www.spreaker.com/podcast/investment-terms--4432332/support.

The Inflation Reduction Act of 2022, H.R. 5376, is designed to reduce the deficit and lower inflation while investing in domestic energy production and lowering healthcare drug costs.
It passed the Senate on Aug. 7, 2022, and is awaiting approval by the House of Representatives, which would set it up to be signed into law by President Biden. In essence, the legislation is a scaled-down version of the Build Back Better Act proposed by the Biden administration in 2021.1
The proposed legislation would raise $725 billion, require total investments of $433 billion, and result in a deficit reduction of more than $292 billion.
The bill allows Medicare to negotiate lower prescription drug prices and extends the expanded Affordable Care Act program for three years, through 2025.
Additionally, the agreement establishes policies designed to promote and support domestic energy and transmission projects.
The goal is to lower costs for consumers and help the U.S. meet long-term emissions goals.

Become a supporter of this podcast: https://www.spreaker.com/podcast/investment-terms--4432332/support.

The Social Security Act established benefits for old-age retirees and the jobless, as well as aid for dependent mothers and children, victims of work-related accidents, people who are blind, and those who have physical disabilities.
It was signed into law in 1935 during the administration of President Franklin D. Roosevelt.
Previously, such benefits were not provided at all by the federal government, aside from pensions for veterans.
Under the act, the U.S. government started collecting the Social Security tax from workers in 1937 and began making payments in 1940. It laid the groundwork for many aspects of U.S. labor law.
Social Security tax is collected in the form of a payroll tax mandated by the Federal Insurance Contributions Act or a self-employment tax mandated by the Self-Employed Contributions Act.
The tax is levied on both employers and employees.

Become a supporter of this podcast: https://www.spreaker.com/podcast/investment-terms--4432332/support.

A trustee is a person or firm that holds and administers property or assets for the benefit of a third party.
A trustee may be appointed for a wide variety of purposes, such as in the case of bankruptcy, for a charity, for a trust fund, or for certain types of retirement plans or pensions.
Trustees are trusted to make decisions in the beneficiary's best interests and often have a fiduciary responsibility, meaning they act in the best interests of the trust beneficiaries to manage their assets.
A trustee is any type of person or organization that holds the legal title of an asset or group of assets for another person, referred to as the beneficiary.

Become a supporter of this podcast: https://www.spreaker.com/podcast/investment-terms--4432332/support.

A Treasury note is a marketable U.S. government debt security with a fixed interest rate and a maturity between two and 10 years. Treasury notes are available from the government with either a competitive or noncompetitive bid. With a competitive bid, investors specify the yield they want, at the risk that their bid may not be approved; with a noncompetitive bid, investors accept whatever yield is determined at auction.
A Treasury note is a U.S. government debt security with a fixed interest rate and maturity between two and 10 years.
Treasury notes are available either via competitive bids, in which an investor specifies the yield, or non-competitive bids, in which the investor accepts whatever yield is determined.

Become a supporter of this podcast: https://www.spreaker.com/podcast/investment-terms--4432332/support.

A credit card balance is the total amount of money currently owed by a cardholder to their credit card company.
Balances change based on when and how they are used—they increase when purchases are made and decrease when cardholders make payments. Any remaining balance at the end of the billing cycle is carried over to the next month’s bill and incurs an interest charge. Credit card balances are important factors in calculating a person’s credit score.

Become a supporter of this podcast: https://www.spreaker.com/podcast/investment-terms--4432332/support.

A Ponzi scheme is a fraudulent investing scam promising high rates of return with little risk to investors. This is similar to a pyramid scheme in that both are based on using new investors' funds to pay the earlier backers.
Both Ponzi schemes and pyramid schemes eventually bottom out when the flood of new investors dries up and there isn't enough money to go around. At that point, the schemes unravel.

Become a supporter of this podcast: https://www.spreaker.com/podcast/investment-terms--4432332/support.

Buy the dips means purchasing an asset after it has dropped in price. The belief here is that the new lower price represents a bargain as the descent is only a short-term blip and the asset, with time, is likely to bounce back and increase in value.
In a repeated fashion, buying the dips refers to going long an asset or security after its price has experienced a short-term decline.

Become a supporter of this podcast: https://www.spreaker.com/podcast/investment-terms--4432332/support.