What is a Silent Partner? A silent partner is an investor that provides capital and places full confidence in the general partner’s ability to grow the business. Ultimately, a silent partner is one who still shares in the profits and losses of a business but is not involved in management or operations. A…
What is Floor Area Ratio (FAR)? Floor Area Ratio (FAR) indicates the correlation between the plot area on which the building is constructed and the building floor area that can be used or is allowed to be used. A higher floor area ratio implies an urban or denser construction. FAR guidelines are determined by the…
What is the Halloween Strategy? The Halloween strategy refers to a market-timing strategy that is built off the thesis that equity securities perform better between October 31st and May 1st. Investors who invest using the Halloween strategy will purchase stocks in November and eventually sell the stocks in April. During the remainder of the year,…
What is Floating Stock? Floating stock is described as the aggregate shares of a company’s stock that are available in the open market. It represents the number of outstanding stock or shares available to the public for trading and does not include closely held shares or restricted stock. A company with a low number of…
What is a Floating Exchange Rate? A floating exchange rate is an exchange rate system where a country’s currency price is determined by the foreign exchange market, depending on the relative supply and demand of other currencies. A floating exchange rate is not restrained by trade limits or government controls, unlike a fixed exchange rate….
What is a Floating Rate Fund? A floating rate fund is a type of mutual fund that invests in securities paying fluctuating interest rates. Floating rate funds primarily invest in debt instruments like loans and bonds. The fluctuation in rates of interest generates worthy returns for investors. Each financial instrument that the floating rate fund…
What is a Floor Trader (FT)? A floor trader (FT) is an individual who conducts transactions on the exchange floor for his/her own account. Usually, a floor trader trades in derivatives or securities on the trading floor and seeks to make profits from price swings over the short term. A floor trader can be referred…
What is a Floating Charge? A floating charge (or floating lien) gives a lender a broad legal interest over a pool of assets owned by a business and which serve as collateral to secure debt. It matches operating debt to assets that change, often current assets. Unlike a fixed charge, a floating charge does not…
What is the Four Percent Rule? The Four Percent Rule is known as the percentage amount a retiree should withdraw from their retirement account per year. It is meant to be a benchmark that provides individuals with a steady set stream of income while allowing the invested balance to continue to grow throughout retirement. Understanding…
Who is Kenneth Arrow? Kenneth Arrow was an economist who won the Nobel Memorial Prize in Economic Sciences in 1972. He was known for his contribution to equilibrium analysis and welfare economics. He also explored social choice theory, endogenous growth theory, collective decision-making, the economics of information, and economics of racial discrimination. …
