Investment Terms

Quantitative easing is a form of unconventional monetary policy in which a central bank purchases longer-term securities from the open market in order to increase the money supply and encourage lending and investment. QE usually involves the central bank purchasing longer-term government bonds as well as other types of assets such as mortgage-backed securities.
Buying these securities adds new money to the economy, and also serves to lower interest rates by bidding up fixed-income securities. It also greatly expands the central bank's balance sheet.
If quantitative easing itself loses effectiveness, fiscal policy, or government spending, may be used to further expand the money supply. In effect, quantitative easing can even blur the line between monetary and fiscal policy, if the assets purchased consist of long term government bonds that are being issued to finance counter-cyclical deficit spending.
Quantitative easing can devalue the domestic currency. For manufacturers, this may help stimulate growth because exported goods would be cheaper in the global market. However, a falling currency value makes imports more expensive, which can increase the cost of production and consumer price levels.

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Quantitative easing is a form of unconventional monetary policy in which a central bank purchases longer-term securities from the open market in order to increase the money supply and encourage lending and investment. QE usually involves the central bank purchasing longer-term government bonds as well as other types of assets such as mortgage-backed securities.Buying these securities adds new money to the economy, and also serves to lower interest rates by bidding up fixed-income securities. It also greatly expands the central bank's balance sheet.If quantitative easing itself loses effectiveness, fiscal policy, or government spending, may be used to further expand the money supply. In effect, quantitative easing can even blur the line between monetary and fiscal policy, if the assets purchased consist of long term government bonds that are being issued to finance counter-cyclical deficit spending.Quantitative easing can devalue the domestic currency. For manufacturers, this may help stimulate growth because exported goods would be cheaper in the global market. However, a falling currency value makes imports more expensive, which can increase the cost of production and consumer price levels.

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The investment term of the day is 'Market Indexes'

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The investment term of the day is 'Market Indexes'

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Ultra-high net-worth individuals are defined as people with investable assets of at least $30 million, usually excluding personal assets and property such as a primary residence, collectibles, and consumer durables. UHNWIs comprise the wealthiest people in the world and control a disproportionate amount of global wealth. Although they constitute only .003% of the world’s total population, they hold approximately 13% of the world's total wealth. Ultra-high net worth is generally quoted in terms of liquid assets over a certain figure, but the exact amount differs by financial institution and region.
The biggest changes in the numbers of UHNWI appear in emerging economies and specifically in the BRIC nations of Brazil, Russia, India, and China. China and Russia, in particular, boast more than 200 billionaires in their ranks, making these countries third and fourth, respectively, behind the United States and the United Kingdom. In Russia, Vladimir Potanin, chairman and key shareholder in Norilsk Nickel, and Leonid Mikhelson, a gas and petrochemical magnate, are two of the country's top billionaires. In China, Wang Jianlin's real estate fortune, Jack Ma's company Alibaba, and Ma Huateng's internet holdings propel them to the top of their country's list of UHNWIs.
As of 2018, Amazon.com CEO Jeff Bezos reigns as the wealthiest person in the world, followed by Bill Gates, Warren Buffett, Mark Zuckerberg, and Carlos Slim Helu. Others near the top of the world's UHNWI population include brothers Charles and David Koch, former New York City mayor Michael Bloomberg, and several children and in-laws of Sam Walton, the late founder of Wal-Mart.
According to Forbes in 2018, half of all UHNWIs live in North America, and a quarter of them live in Europe. Asia-Pacific countries, excluding India and China, host 13% of the world's UHNWI population. The United States has the highest number of UHNWIs; 48% of them call the country home. China has the second-highest share of the UHNWI population with approximately 8%, and the United Kingdom follows with 4%.
As of 2018, the population of Ultra-High Networth Individuals was 226,450, up from 172,850 in 2015. The figure is 70% higher than a dozen years earlier. Some 2,170 of these individuals have more than a billion dollars which is an 85% increase over the number of billionaires in the previous decade. Together, these individuals hold 27 trillion dollars in aggregate wealth. The majority of ultra-high net-worth individuals are self-made men and women.

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Ultra-high net-worth individuals are defined as people with investable assets of at least $30 million, usually excluding personal assets and property such as a primary residence, collectibles, and consumer durables. UHNWIs comprise the wealthiest people in the world and control a disproportionate amount of global wealth. Although they constitute only .003% of the world’s total population, they hold approximately 13% of the world's total wealth. Ultra-high net worth is generally quoted in terms of liquid assets over a certain figure, but the exact amount differs by financial institution and region.The biggest changes in the numbers of UHNWI appear in emerging economies and specifically in the BRIC nations of Brazil, Russia, India, and China. China and Russia, in particular, boast more than 200 billionaires in their ranks, making these countries third and fourth, respectively, behind the United States and the United Kingdom. In Russia, Vladimir Potanin, chairman and key shareholder in Norilsk Nickel, and Leonid Mikhelson, a gas and petrochemical magnate, are two of the country's top billionaires. In China, Wang Jianlin's real estate fortune, Jack Ma's company Alibaba, and Ma Huateng's internet holdings propel them to the top of their country's list of UHNWIs.As of 2018, Amazon.com CEO Jeff Bezos reigns as the wealthiest person in the world, followed by Bill Gates, Warren Buffett, Mark Zuckerberg, and Carlos Slim Helu. Others near the top of the world's UHNWI population include brothers Charles and David Koch, former New York City mayor Michael Bloomberg, and several children and in-laws of Sam Walton, the late founder of Wal-Mart.According to Forbes in 2018, half of all UHNWIs live in North America, and a quarter of them live in Europe. Asia-Pacific countries, excluding India and China, host 13% of the world's UHNWI population. The United States has the highest number of UHNWIs; 48% of them call the country home. China has the second-highest share of the UHNWI population with approximately 8%, and the United Kingdom follows with 4%.As of 2018, the population of Ultra-High Networth Individuals was 226,450, up from 172,850 in 2015. The figure is 70% higher than a dozen years earlier. Some 2,170 of these individuals have more than a billion dollars which is an 85% increase over the number of billionaires in the previous decade. Together, these individuals hold 27 trillion dollars in aggregate wealth. The majority of ultra-high net-worth individuals are self-made men and women.

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Derivative are financial securities with a value that is reliant upon or derived from, an underlying asset or group of assets—a benchmark. The derivative itself is a contract between two or more parties, and the derivative derives its price from fluctuations in the underlying asset.
The most common underlying assets for derivatives are stocks, bonds, commodities, currencies, interest rates, and market indexes. These assets are commonly purchased through brokerages.
Originally, derivatives were used to ensure balanced exchange rates for goods traded internationally. Today, derivatives are based upon a wide variety of transactions and have many more uses. There are even derivatives based on weather data, such as the amount of rain or the number of sunny days in a region.
Derivatives can trade over-the-counter or on an exchange.
OTC derivatives constitute a greater proportion of the derivatives market. OTC-traded derivatives, generally have a greater possibility of counterparty risk. Counterparty risk is the danger that one of the parties involved in the transaction might default.
Conversely, derivatives that are exchange-traded are standardized and more heavily regulated.
Derivatives can be used to hedge a position, speculate on the directional movement of an underlying asset, or give leverage to holdings. Their value comes from the fluctuations of the values of the underlying asset.
Derivatives provide a way to lock-in prices, hedge against unfavorable movements in rates, and mitigate risks—often for a limited cost. In addition, derivatives can often be purchased on margin—that is, with borrowed funds—which makes them even less expensive.
On the downside, derivatives are difficult to value because they are based on the price of another asset. Most derivatives are also sensitive to changes in the amount of time to expiration, the cost of holding the underlying asset, and interest rates.
Finally, derivatives are usually leveraged instruments, and using leverage cuts both ways. While it can increase the rate of return it also makes losses mount more quickly.

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Derivative are financial securities with a value that is reliant upon or derived from, an underlying asset or group of assets—a benchmark. The derivative itself is a contract between two or more parties, and the derivative derives its price from fluctuations in the underlying asset.The most common underlying assets for derivatives are stocks, bonds, commodities, currencies, interest rates, and market indexes. These assets are commonly purchased through brokerages.Originally, derivatives were used to ensure balanced exchange rates for goods traded internationally. Today, derivatives are based upon a wide variety of transactions and have many more uses. There are even derivatives based on weather data, such as the amount of rain or the number of sunny days in a region.Derivatives can trade over-the-counter or on an exchange. OTC derivatives constitute a greater proportion of the derivatives market. OTC-traded derivatives, generally have a greater possibility of counterparty risk. Counterparty risk is the danger that one of the parties involved in the transaction might default. Conversely, derivatives that are exchange-traded are standardized and more heavily regulated.Derivatives can be used to hedge a position, speculate on the directional movement of an underlying asset, or give leverage to holdings. Their value comes from the fluctuations of the values of the underlying asset.Derivatives provide a way to lock-in prices, hedge against unfavorable movements in rates, and mitigate risks—often for a limited cost. In addition, derivatives can often be purchased on margin—that is, with borrowed funds—which makes them even less expensive.On the downside, derivatives are difficult to value because they are based on the price of another asset. Most derivatives are also sensitive to changes in the amount of time to expiration, the cost of holding the underlying asset, and interest rates. Finally, derivatives are usually leveraged instruments, and using leverage cuts both ways. While it can increase the rate of return it also makes losses mount more quickly.

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A restricted stock unit is a form of compensation issued by an employer to an employee in the form of company shares. Restricted stock units, or RSUs, are issued to an employee through a vesting plan and distribution schedule after achieving required performance milestones OR upon remaining with their employer for a particular length of time.
RSUs give an employee interest in company stock but they have no tangible value until vesting is complete. The restricted stock units are assigned a fair market value when they vest. Upon vesting, they are considered income, and a portion of the shares is withheld to pay income taxes. The employee receives the remaining shares and can sell them at his or her discretion.
Benefits of RSUs including giving an employee an incentive to stay with a company long term and help it perform well so that their shares increase in value. If an employee decides to hold their shares until they receive the full vested allocation, and the company's stock rises, the employee receives the capital gain minus the value of the shares withheld for income taxes and the amount due in capital gains taxes.
Limitations of Restricted Stock Units including it not providing dividends, as actual shares are not allocated. However, an employer may pay dividend equivalents that can be moved into an escrow account to help offset withholding taxes, or be reinvested through the purchase of additional shares.

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A restricted stock unit is a form of compensation issued by an employer to an employee in the form of company shares. Restricted stock units, or RSUs, are issued to an employee through a vesting plan and distribution schedule after achieving required performance milestones OR upon remaining with their employer for a particular length of time.RSUs give an employee interest in company stock but they have no tangible value until vesting is complete. The restricted stock units are assigned a fair market value when they vest. Upon vesting, they are considered income, and a portion of the shares is withheld to pay income taxes. The employee receives the remaining shares and can sell them at his or her discretion.Benefits of RSUs including giving an employee an incentive to stay with a company long term and help it perform well so that their shares increase in value. If an employee decides to hold their shares until they receive the full vested allocation, and the company's stock rises, the employee receives the capital gain minus the value of the shares withheld for income taxes and the amount due in capital gains taxes. Limitations of Restricted Stock Units including it not providing dividends, as actual shares are not allocated. However, an employer may pay dividend equivalents that can be moved into an escrow account to help offset withholding taxes, or be reinvested through the purchase of additional shares.

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