Investment Terms

The applicable federal rate is the minimum interest rate that the Internal Revenue Service (IRS) allows for private loans. Each month the IRS publishes a set of interest rates that the agency considers the minimum market rate for loans. Any interest rate that is less than the AFR would have tax implications. The IRS publishes these rates in accordance with Section 1274(d) of the Internal Revenue Code.
The AFR is used by the IRS as a point of comparison versus the interest on loans between related parties, such as family members. If you were giving a loan to a family member, you would need to be sure that the interest rate charged is equal to or higher than the minimum applicable federal rate.
The IRS publishes three AFRs: short-term, mid-term, and long-term. Short-term AFR rates are determined from the one-month average of the market yields from marketable obligations, such as U.S. government T-bills with maturities of three years or less. Mid-term AFR rates are from obligations of maturities of more than three and up to nine years. Long-term AFR rates are from bonds with maturities of more than nine years.

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Demonetization is the act of stripping a currency unit of its status as legal tender. It occurs whenever there is a change in national currency. The current form or forms of money is pulled from circulation and retired, often to be replaced with new notes or coins. Sometimes, a country completely replaces the old currency with a new currency.
Removing the legal tender status of a unit of currency is a drastic intervention into an economy because it directly affects the medium of exchange used in all economic transactions. It can help stabilize existing problems, or it can cause chaos in an economy, especially if undertaken suddenly or without warning.

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The Klinger Oscillator was developed by Stephen Klinger to determine the long-term trend of money flow while remaining sensitive enough to detect short-term fluctuations. The indicator compares the volume flowing through securities with the security's price movements and then converts the result into an oscillator. The Klinger oscillator shows the difference between two moving averages which are based on more than price. Traders watch for divergence on the indicator to signal potential price reversals. Like other oscillators, a signal line can be added to provide additional trade signals.
Traders will use tools such as trendlines, moving averages, and other indicators to confirm trade signals. In addition, traders may use the oscillator in conjunction with chart patterns, such as price channels or triangles, as a way to confirm a breakout or breakdown. Crossovers occur frequently, as do divergences, so the indicator is best used in conjunction with these other technical trading methods.

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The correlation coefficient is a statistical measure of the strength of the relationship between the relative movements of two variables. The values range between -1.0 and 1.0. A calculated number is greater than 1.0 or less than -1.0 means that there was an error in the correlation measurement. A correlation of -1.0 shows a perfect negative correlation, while a correlation of 1.0 shows a perfect positive correlation. A correlation of 0.0 shows no linear relationship between the movement of the two variables.
Correlation statistics can be used in finance and investing. For example, a correlation coefficient could be calculated to determine the level of correlation between the price of crude oil and the stock price of an oil-producing company, such as Exxon Mobil Corporation. Since oil companies earn greater profits as oil prices rise, the correlation between the two variables is highly positive.

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Bitcoin mining is the process by which new bitcoins are entered into circulation; it is also the way that new transactions are confirmed by the network and a critical component of the maintenance and development of the blockchain ledger. Mining is performed using sophisticated hardware that solves an extremely complex computational math problem. The first computer to find the solution to the problem is awarded the next block of bitcoins and the process begins again.
Cryptocurrency mining is painstaking, costly, and only sporadically rewarding. Nonetheless, mining has a magnetic appeal for many investors interested in cryptocurrency because of the fact that miners are rewarded for their work with crypto tokens. This may be because entrepreneurial types see mining as pennies from heaven, like California gold prospectors in 1849.

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In probability theory, the central limit theorem states that the distribution of a sample variable approximates a normal distribution as the sample size becomes larger, assuming that all samples are identical in size, and regardless of the population's actual distribution shape.
CLT is a statistical premise that given a sufficiently large sample size from a population with a finite level of variance, the mean of all sampled variables from the same population will be approximately equal to the mean of the whole population. Furthermore, these samples approximate a normal distribution, with their variances being approximately equal to the variance of the population as the sample size gets larger, according to the law of large numbers.
Although this concept was first developed by Abraham de Moivre in 1733, it was not formalized until 1930, when noted Hungarian mathematician George Polya dubbed it the Central Limit Theorem.

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The acid-test ratio also commonly known as the quick ratio, measures the liquidity of a company by calculating how well current assets can cover current liabilities. The quick ratio uses only the most liquid current assets that can be converted to cash within 90 days or less.
The acid-test, or quick ratio, involves assessing a company's balance sheet to see whether it has enough funding on hand to cover its current debt.
It is seen as more useful than the often-used current ratio since the acid-test excludes inventory, which can be hard to quickly liquidate.
In the best-case scenario, a company should have a ratio of 1 or more, suggesting the company has enough cash to pay its bills.
Too low a ratio can suggest a company is cash-strapped, but in some cases, it just means a company is dependent on inventory, like retailers.

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A product recall is a process of retrieving defective and/or potentially unsafe goods from consumers while providing those consumers with compensation. Recalls often occur as a result of safety concerns over a manufacturing defect in a product that may harm its user.
A product recall may be voluntary or mandated by a regulatory body such as the Consumer Product Safety Commission in the U.S. Product recalls occurring as a result of safety or quality concerns related to a manufacturing or design defect in a product that may harm its users.
Recalls may negatively affect a company's stock as they are expensive and can damage a firm's reputation, leading to declining sales. Recalls may be done voluntarily if the company believes it will be more cost-effective rather than wait for lawsuits or mandated recalls.

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A military bank is a financial institution that offers services tailored to members of the armed forces. Military banks are popular among service people because they offer various types of specialized accounts, perks and benefits, and services and options accommodating military lifestyles. Though some banks target a broader audience, military banks primarily focus on and cater to military personnel.
People who serve in the military, along with their families, have unique banking needs that military banking services are designed to meet. Frequent travel and relocation make features like fully refundable out-of-network ATM fees and remote check deposits valuable.
An account that has no foreign transaction fees helps a servicemember deployed abroad.

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Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, affluence, and business success. They are often preppy in appearance and like to show off their success by their style and possessions.
The term yuppie originated in the 1980s and is used to refer to young urban professionals who are successful in business and considerably affluent.
Some credit writer Joseph Epstein with using the term while others point to journalist Dan Rottenberg's Chicago magazine article.
It is difficult to identify modern yuppies because modern society has doled out wealth to various groups of people rather than a specific set of people with similar characteristics.
Yuppies tend to be educated with high-paying jobs, and they live in or near large cities. Some typical industries associated with yuppies include finance, tech, academia, and many areas in the arts, especially those associated with liberal thinking and style.

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