What are Actuarial Gains or Losses? Actuarial gains or losses refer to the differences between an employer’s actual pension payments relative to the expected payments. When the employer’s payments are higher than expected, it is referred to as an actuarial loss. In contrast, an actuarial gain is when the payments are lower than expected. When…
What are Ponzi vs. Pyramid Schemes? Investors need to be knowledgeable about where they put their money into, particularly about Ponzi vs. pyramid schemes. While the schemes are somewhat similar in how they are operated, there are distinctive differences in their structure. Additionally, while a Ponzi scheme is an outright case of fraud, it…
What are Downstream Operations? Downstream operations refer to the final processes in the production and sale of goods, where finished products are created and sold to consumers. Sales may be at the wholesale level, business-to-business (B2B), or at the retail level, business-to-consumers. Downstream operations stand in contrast to upstream operations, which are part…
What is Panic Buying? Panic buying is a phenomenon of mass purchasing that typically occurs either just before or just after some sort of disaster – whether the disaster is real or only predicted. It often happens related to severe weather incidents, such as an impending major snowstorm or hurricane. Consumers fear not being to…
What is Racketeering? Racketeering is a legal term that refers to acts committed that are part of an ongoing criminal enterprise. The term is most commonly associated with the activities of organized crime organizations – such as the Mafia – but in recent years, it’s been applied to any sort of ongoing illegal practice or…
What is Mortgage Fraud? Mortgage fraud refers to any intentional deception or misrepresentation used to obtain a mortgage loan. Typically, mortgage fraud occurs when a prospective homebuyer either gives false information or omits significant information in the process of applying for a mortgage loan to purchase a property. Understanding Mortgage Fraud While mortgage fraud is…
What is a Money Manager? A money manager is a person or entity that manages the financial assets of a portfolio for individuals or institutional investors. Money managers may also track expenses and investments, create budgets, and evaluate taxes. Money managers can adopt varying goals for their clients, including ensuring the safety of the principal,…
What is a Stock Market Index? A stock market index, also known as a stock index, measures a section of the stock market. In other words, the index measures the change in the share prices of different companies. The stock index is determined by calculating the prices of certain stocks (generally a weighted average). It…
What is Metropolitan Statistical Area (MSA)? Metropolitan Statistical Area (MSA) is a designation used by the Office of Management and Budget (OMB) to refer to a delineation consisting of multi-county clusters with a population density of at least 50,000. An MSA broadly consists of a city with communities closely linked and exhibits a high degree…
