Investment Terms

A required minimum distribution is the amount of money that must be withdrawn from an employer-sponsored retirement plan, traditional IRA, SEP, or SIMPLE individual retirement account by owners and qualified retirement plan participants of retirement age.
A required minimum distribution acts as a safeguard against people using a retirement account to avoid paying taxes.
RMDs are determined by dividing the retirement account’s prior year-end fair market value by the applicable distribution period or life expectancy.4
The Internal Revenue Service has a worksheet to help taxpayers calculate the amount they must withdraw.5 Generally, your account custodian or plan administrator will calculate these amounts and report them to the IRS.



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

In sports betting, a parlay bet is when a bettor makes two or more bets and ties them together into one bet. A parlay bet may contain two individual bets or many more. Depending on the sportsbook or the region, they may also be called accumulators or multis.
The disadvantage of a parlay bet is that if any of the bets in the parlay loses, then the entire parlay is lost.
A parlay bet is a bet made up of a number of smaller bets. A parlay is a way of linking bets together, so they are treated as one big bet.
You must win every smaller bet to win the parlay bet—if you lose just one of the smaller bets, then the entire parlay is lost.

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

Net interest margin is a measurement comparing the net interest income a financial firm generates from credit products like loans and mortgages, with the outgoing interest it pays holders of savings accounts and certificates of deposit.
Expressed as a percentage, the NIM is a profitability indicator that approximates the likelihood of a bank or investment firm thriving over the long haul.
This metric helps prospective investors determine whether or not to invest in a given financial services firm by providing visibility into the profitability of their interest income versus their interest expenses.
A positive net interest margin suggests that an entity operates profitably, while a negative figure implies investment inefficiency.

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

Chapter 11 is a form of bankruptcy that involves a reorganization of a debtor’s business affairs, debts, and assets, and for that reason is known as "reorganization" bankruptcy.
Chapter 11 bankruptcy is the most complex of all bankruptcy cases. It is also usually the most expensive form of a bankruptcy proceeding. For these reasons, a company must consider Chapter 11 reorganization only after careful analysis and exploration of all other possible alternatives.
During a Chapter 11 proceeding, the court will help a business restructure its debts and obligations. In most cases, the firm remains open and operating. Many large U.S. companies file for Chapter 11 bankruptcy and stay afloat.
Such businesses include automobile giant General Motors, the airline United Airlines, retail outlet K-mart, and thousands of other corporations of all sizes.


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

Headline inflation is the raw inflation figure reported through the Consumer Price Index that is released monthly by the Bureau of Labor Statistics.
The CPI calculates the cost to purchase a fixed basket of goods to determine how much inflation is occurring in the broad economy.
The CPI uses a base year and indexes the current year's prices, according to the base year's values.
Headline inflation is often closely related to shifts in the cost of living, which provides useful information to consumers within the marketplace.
The headline figure is not adjusted for seasonality or for the often-volatile elements of food and energy prices, which are removed in the core CPI.

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

Airlines have notoriously been known to have difficulty remaining profitable given their high fixed costs, the desire of passengers to find the cheapest tickets, and seasonality factors.
The load factor is an indicator that measures the percentage of available seating capacity that is filled with passengers. It is released monthly by the International Air Transport Association.
A high load factor indicates that an airline has full planes with most seats occupied by passengers. Airlines have high fixed costs associated with each flight. Every flight must have a full flight crew and support staff, a well-maintained aircraft with enough fuel, and services that entertain and comfort customers.

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

Loss aversion in behavioral economics refers to a phenomenon where a real or potential loss is perceived by individuals as psychologically or emotionally more severe than an equivalent gain.
The psychological effects of experiencing a loss or even facing the possibility of a loss might even induce risk-taking behavior that could make realized losses even more likely or more severe.
Loss aversion is the observation that human beings experience losses asymmetrically more severely than equivalent gains.
Investors can avoid psychological traps by adopting a strategic asset allocation strategy, thinking rationally, and not letting emotion get the better of them.
Load factor

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

The Institute of Supply Management Non-Manufacturing Index is an economic index based on surveys of more than 400 non-manufacturing (or services) firms' purchasing and supply executives. The ISM services survey is part of the ISM Report On Business Manufacturing and ServicesThe Purchasing Managers' Index is a barometer on the overall economy by showing the economic trends in both the manufacturing and service sectors. The ISM Report On Business provides guidance to supply management professionals, business leaders, economists, and government officials by monitoring the economic conditions of the nation. The ISM Services PMI (formerly the Non-Manufacturing NMI) is compiled and issued by the Institute of Supply Management (ISM) and contains a diffusion index based on survey data.

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

A virtual currency is a digital representation of value only available in electronic form. It is stored and transacted through designated software, mobile, or computer applications.
Transactions involving virtual currencies occur through secure, dedicated networks or over the Internet. They are issued by private parties or groups of developers and are mostly unregulated.
The advantages of virtual currencies include faster transaction speeds and ease of use. The disadvantages of virtual currencies are that they can be hacked and do not provide much legal recourse to investors because they are not regulated.

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

The North American Free Trade Agreement was a pact eliminating most trade barriers between the U.S., Canada, and Mexico that went into effect on Jan. 1, 1994.
Some of its provisions were implemented immediately, while others were staggered over the 15 years that followed.1
U.S. President Donald Trump railed against it during his campaign, promising to renegotiate the deal and tear it up if the United States couldn't get its desired concessions.
A newly negotiated United States-Mexico-Canada Agreement was approved in 2020 to update NAFTA.

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