What is Sell in May and Go Away? Sell in May and Go Away refers to a well-known adage in the business and financial world. The phrase refers to an investment strategy for stocks based on the theory that the stock market underperforms in the six-month period between May and October. In contrast, the period…
What is FUTA Tax? FUTA is an abbreviation for Federal Unemployment Tax Act. FUTA Tax is a United States federal tax imposed on employers to help fund unemployment payments. The tax is imposed solely on employers who pay wages to employees. FUTA Tax is used to pay employees who leave employment involuntarily and are eligible…
What is a Unilateral Contract? A unilateral contract is primarily a one-sided, legally binding agreement where one party agrees to pay for a specified act. Given that unilateral agreements are one-sided, they only require a pre-arranged commitment from the offeror, unlike a bilateral agreement where a commitment is required from two or more parties. A…
What is a Loan Stress Test? A loan stress test is an analysis or simulation designed to determine the ability of a given financial institution or a private borrower to deal with a recession or a financial market crisis. Historically, we’ve dealt with numerous crises like the Great Depression, the Dotcom bubble, and the Global…
What is the Slow Stochastic Indicator? The slow stochastic indicator is a technical momentum indicator that aims to measure the trend in prices and identify trend reversals. George Lane developed the indicator, which is driven by two parameters – the lookback period and the smoothing parameter. The lookback period is the period over which the…
What are Fibonacci Retracements? A Fibonacci retracement is a technical indicator used to identify support and resistance levels in a time series of prices or index levels. Unlike many technical indicators, Fibonacci retracements cannot be used directly to generate buy and sell signals. Instead, they are used as guides in conjunction with other indicators to…
What is a Furlough? A furlough is when employees are given a leave of absence from work for which the employee is not paid. A worker who is on furlough remains an employee of the company where they work. They receive neither a salary nor a reduced salary. Putting workers on furlough allows distressed businesses…
How to Read a Balance Sheet? Reading a balance sheet is important in determining the financial health of a company. The balance sheet, also known as the statement of financial position, is one of the three key financial statements. It summarizes a company’s financial position at a point in time. The balance sheet is unlike…
What is High Close? High close is a trading strategy used right before the market closes for stock price manipulation. Traders attempt to make small trades at high prices during the last few minutes before the market is closed to leave an impression that the stock’s performed well. The high close strategy’s been criticized for…
What is a Hell or High Water Contract? A hell or high water contract is a legal contract with a clause stating that the buyer needs to continue making payments regardless of any complications. The term for the clause comes from a colloquial expression meaning to complete a task regardless of any difficulty (“come hell…
