What is the Korea Investment Corporation (KIC)? The Korea Investment Corporation (KIC) is a sovereign wealth fund established by the government of the Republic of Korea on July 1, 2005, under the KIC act. The corporation’s purpose is “to increase national wealth and contribute to the growth of Korea’s finance industry.” KIC’s Vision and Mission…
Who is Karl Marx? Karl Marx is a well-studied and well-cited economist. He lived between 1818 and 1883, but his ideas still exist in society today. In addition to being an economist, he was also a well-known philosopher and historian. He’s been a prominent voice in the debate against capitalism, writing the famous books The…
What is International Trade? International trade is an exchange involving a good or service conducted between at least two different countries. The exchanges can be imports or exports. An import refers to a good or service brought into the domestic country. An export refers to a good or service sold to a foreign country. International…
What is Evergreen Funding? Evergreen funding describes a type of business funding that is gradual and ongoing, as opposed to a one-time infusion of capital. The phrase originated in the United Kingdom. Evergreen funding is typically spoken of in relation to the funding a business receives from venture capital firms. Venture capital firms may provide…
What is an Evergreen Contract? An evergreen contract renews itself after the deadline or expiration date. It will continue to renew itself until both parties agree to terminate the notice. Evergreen contracts are used for the following: Rental leases Purchase contracts Service agreements Dividend reinvestment plans Guaranteed investment certificates Healthcare plans Magazines subscriptions Understanding Evergreen…
What is a Non-Exempt Employee? A non-exempt employee refers to a worker who is entitled to overtime pay of at least 1.5 times their regular pay rate, in accordance with the U.S. Fair Labor Standards Act. As opposed to exempt employees, non-exempt employees can be paid an hourly wage and must be paid at least…
What is a Distribution Waterfall? A distribution waterfall is a popular term in equity investing that refers to how capital gains from a fund are allocated among participants, typically the limited partners (LPs) and the general partner (GP). The capital of limited partners is managed by the general partner in a private equity fund. The general partner…
What is a Merger vs Acquisition? Mergers and acquisitions both refer to the joining of two or more business entities that entail a restructuring of their corporate order. They are aimed at achieving better synergies within the organization in order to increase their competence and efficiency. However, there are key differences between a merger vs….
What is the Durbin Watson Statistic? The Durbin Watson statistic is a test statistic to detect autocorrelation in the residuals from a regression analysis. It is named after professor James Durbin, a British statistician and econometrician, and Geoffrey Stuart Watson, an Australian statistician. What is Autocorrelation? Serial correlation, also called autocorrelation, refers to the degree…
