What is the GAAP Hierarchy? The GAAP hierarchy specifies the relative level of authority of accounting principles and guidelines under the Generally Accepted Accounting Principles that govern accounting standards in the United States. The hierarchy consists of four levels. The highest levels of the hierarchy provide broad, general rules for accounting, typically applicable to any…
What is the Heikin-Ashi Technique? The Heikin-Ashi technique is a Japanese candlestick-based technical trading tool that uses candlestick charts to represent and visualize market price data. It is used to identify market trend signals and forecast price movements. The Heikin-Ashi method uses average price data that helps to filter out market noise. The absence of…
What is the South Korean Won (KRW)? The South Korean Won is the currency of the Republic of Korea – more commonly known as South Korea. The won is a decimalized currency, divided into 100 jeon. The jeon is no longer used for ordinary, everyday transactions. For practical purposes, the lowest denomination of South Korean…
What is the Katie Couric Clause? The Katie Couric Clause is a colloquialism for the controversial ruling that the Securities and Exchange Commission (SEC) considered implementing in 2006. The ruling was officially known as the Executive Compensation and Related Party Disclosure clause. The proposed ruling had distinct impacts on executive compensation, director compensation, quarterly 8-K…
What is Listed Property? Listed property is a specific type of depreciable asset that is primarily used as a productive asset for business purposes. To qualify as listed property, the property should be used for over 50% of the company’s business, implying that it can also be used for personal purposes. The benefit derived by…
What is a Junior Mortgage? A junior mortgage refers to a second mortgage that is granted in conjunction with the approval of an effective primary or prior mortgage. The primary mortgage is referred to as a senior mortgage. A junior mortgage can also be a third, fourth, or fifth mortgage granted after the security of…
What is Junior Equity? Junior equity refers to the equity or shares issued by a company that ranks below other shares or stocks issued by the same company. The stock issued is said to be subordinate to other stocks issued by an entity and will be paid out last in a liquidation scenario. Ordinary shares…
What is a Junior Security? A junior security is a security that ranks lower in priority and seniority when contrasted against other securities. It typically comes with a lower priority claim against the assets and incomes of the issuer than other securities. If a company files for bankruptcy and liquidates its assets, it must follow…
What is a Junior Company? A junior company can be defined as a small entity or firm whose sole business activities include the development, exploration, and research of natural resources. Junior companies are comparable to start-ups in the sense that both entities are searching for growth funding or seeking to exit through being purchased by…
What is Junior Debt? Junior debt, also referred to as subordinated debt, is debt considered to be of lower priority in the debt and repayment hierarchy. It is normally unsecured and can be provided without any collateral, making it risky. Junior debt tends to come at higher interest rates than senior debt. If an entity…
