What is Fill or Kill (FOK)? A fill or kill (FOK) order is a conditional order requiring the transaction to be executed immediately and to its full amount at a stated price. If any of the conditions are broken, then the order must be automatically canceled (kill) right away. Brokers usually use the FOK type…
What is a Market-on-Open Order (MOO)? A market-on-open (MOO) order is used to execute a trade when the market opens, or very shortly after, at the day’s opening price. For MOO orders, the share price for the trade must be equal to the opening price recorded that morning. Market-on-open orders are not made with a…
What is Henry Hub? Henry Hub is a natural gas pipeline and distribution hub located in Erath, Louisiana. Sabine Pope Line LLC owns Henry Hub, its parent company being EnLink Midstream Partners, LP. The hub serves an important role in natural gas pricing, leading its name to be used as a price point in determining…
What are Hire Purchase Agreements? Hire purchase agreements are used as an arrangement when purchasing expensive goods or services. The purchaser will pay the initial installment or down payment at the beginning, followed by additional payments in the future to pay off the remaining balance of the good, plus interest. In the U.S., hire purchase…
What are Trading Instruments? Trading instruments are all the different types of assets and contracts that can be traded. Trading instruments are classified into various categories, some more popular than others. They range from equities and forward contracts to indices, currencies, and more. The Most Popular Trading Instruments Popular trading instruments usually see high trading…
What is Intellectual Capital? Intellectual capital refers to the value of a company’s collective knowledge and resources that can provide it with some form of economic benefit. It’s also used to identify a firm’s intangible assets and divide them into meaningful categories. The Three Branches of Intellectual Capital Intellectual capital is broadly summarized into three…
What is an Interim Statement? An interim statement refers to a financial statement that covers a period of less than a year. Interim financial statements portray the financial performance of a company over a short period of time. Publicly traded companies are required to release interim statements on a quarterly basis, providing investors with updates…
What is a Wage Expense? Wage expense refers to the cost incurred by an organization to compensate employees and contractors for work performed over a specific time period. Wage Expense vs. Salary Expense The difference between wages and salaries is often poorly understood. Understanding the difference between wage expense and salary expense allows an analyst…
What is a Wrap Account? A wrap account refers to an investment account that is managed by a broker for a flat annual fee. The flat annual fee, which ranges from 1% to 3% of assets under management (AUM), covers all expenses related to managing the account, such as administration, commission, management expenses. Understanding a…
What is a Go-Shop Period? A go-shop period is a provision within a mergers and acquisitions (M&A) agreement where the target company is permitted to seek out competing offers even after receiving a purchase offer from the acquirer. The period generally lasts up to two months. Understanding the Go-Shop Period A go-shop period allows the…
