Investment Terms

A K-shaped recovery occurs when, following a recession, different parts of the economy recover at different rates, times, or magnitudes. This is in contrast to an even, uniform recovery across sectors, industries, or groups of people.
A K-shaped recovery leads to changes in the structure of the economy or the broader society as economic outcomes and relations are fundamentally changed before and after the recession.
This type of recovery is called K-shaped because the path of different parts of the economy when charted together may diverge, resembling the two arms of the Roman letter "K."

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A financial_advisor is often responsible for more than just executing trades in the market on behalf of their clients.
Advisors use their knowledge and expertise to construct personalized financial plans that aim to achieve the financial goals of clients.
These plans include not only investments but also savings, budget, insurance, and tax strategies.
Advisors further check in with their clients on a regular basis to re-evaluate their current situation and future goals and plan accordingly.
You do not need to be wealthy to benefit from the services of a financial advisor.

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The term probate refers to a legal process in which the validity and authenticity of a will are determined.
Probate also refers to the general administration of a deceased person's will or the estate of a deceased person without a will. After an asset-holder dies, the court appoints an executor named in the will or an administrator (if there is no will) to administer the process of probate.
This involves collecting the deceased's assets to pay any liabilities that remain on their estate and to distribute the assets to beneficiaries.

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Earnings season refers to the months of the year during which most quarterly corporate earnings are released to the public.
Earnings season generally occurs in the month immediately following the end of each fiscal quarter. This means that earnings seasons typically fall in January, April, July, and October, because firms need time after each quarterly accounting period ends to put together their earnings reports.
Although most companies are on a standard calendar year, some major public companies have fiscal years that do not correspond with a calendar year.

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Parity price refers to a price level that sets two assets or securities equal in value to one another. It is a concept that is used in several markets, including fixed income, equities, commodities, and convertible bonds.
For convertible bonds, the parity price concept is used to determine when it is financially beneficial to convert a bond into shares of common stock.
Investors often have to make decisions about the relative value of two different investments.
In addition to using parity price for convertible security, investors can use it to make investment decisions about commodities and currencies.
Parity price can help determine the value of stock options because parity is defined as the price at which an option is trading at its intrinsic value. In addition, the concept of parity is also used to compare the value of two currencies.

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A specific performance clause is a specialized type of contractual equitable relief that may require the defendant to complete the terms of a contract when the court believes no other remedy such as money will adequately compensate the injured party.
Parties to an agreement may insert a specific performance clause into the contract to protect their interests in the event of a breach of contract by either party, especially when the awarding of a monetary award may be deemed insufficient.
A contract for the sale of a specific piece of property, for example, in which the owner pulls out, may result in a specific performance order requiring the seller to complete the sale to put the buyer in the position he or she would have enjoyed if the contract had been honored in the first place.

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A Ninja loan is a slang term for a loan extended to a borrower with little or no attempt by the lender to verify the applicant's ability to repay. It stands for no income, no job, and no assets.
Whereas most lenders require loan applicants to provide evidence of a stable stream of income or sufficient collateral, a ninja loan ignores that verification process.
Ninja loans were more common prior to the 2008 financial crisis. In the aftermath of the crisis, the U.S. government issued new regulations to improve standard lending practices across the credit market, which included tightening the requirements for granting loans. At this point, ninja loans are rare, if not extinct.

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An oligopoly is a market structure with a small number of firms, none of which can keep the others from having significant influence. The concentration ratio measures the market share of the largest firms.
A monopoly is a market with only one producer, a duopoly has two firms, and an oligopoly consists of two or more firms.
There is no precise upper limit to the number of firms in an oligopoly, but the number must be low enough that the actions of one firm significantly influence the others.

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An offset involves assuming an opposite position in relation to an original opening position in the securities markets. An offsetting position can also be generated through hedging instruments, such as futures or options.
In the derivatives markets, to offset a futures position a trader enters an equivalent but an opposite transaction that eliminates the delivery obligation of the physical underlying.
The goal of offsetting is to reduce an investor's net position in investment to zero so that no further gains or losses are experienced from that position.
An offset can refer to the case where losses generated by one business unit are made up for by gains in another. Similarly, firms may also use the term in reference to enterprise risk management where risks exposed in one business unit are offset by opposite risks in another.

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Key performance indicators (KPIs) measure a company's success versus a set of targets, objectives, or industry peers.
KPIs can be financial, including net profit (or the bottom line, gross profit margin), revenues minus certain expenses, or the current ratio (liquidity and cash availability).
Customer-focused KPIs generally centre on per-customer efficiency, customer satisfaction, and customer retention.
Process-focused KPIs aim to measure and monitor operational performance across the organization.

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