What is a Middle Income Country (MIC)? The term Middle Income Country (MIC) is used by the World Bank Group to refer to nation-states with a per capita Gross National Income (GNI) within a predetermined bandwidth. The MIC categorization enables the World Bank to analyze and determine specific policy prescriptions for countries within the category….
Who is a Middleman? A middleman plays the role of an intermediary in a distribution or transaction chain who facilitates interaction between the involved parties. Middlemen specialize in performing crucial activities involved in the purchase and sale of goods in their flow from producers to the ultimate buyers. They typically do not produce anything but…
What is an NFO? An NFO (new fund offer) is a call for investors made by an asset management company (AMC) to invest money into a new fund. An AMC is an enterprise that collects money from different clients and places the funds into different investment opportunities, like equity stocks and real estate. AMCs generally…
What is Risk Tolerance? Risk tolerance refers to the amount of loss an investor is prepared to handle while making an investment decision. Several factors determine the level of risk an investor can afford to take. Knowing the risk tolerance level helps investors plan their entire portfolio and will drive how they invest….
What is a Multi-Factor Model? A multi-factor model is a combination of various elements or factors that are correlated with asset returns. The model uses said factors to explain market equilibrium and asset prices. In multi-factor models, different factors are associated with certain characteristics (such as risk), and it helps determine the weight or importance…
What is Negative Growth? Negative growth implies a decline in value over a stated period. It is commonly observed in economic, industry, and business analysis. Typically, negative growth is expressed as a percentage over a period of time. Negative Growth in an Economic Context A country’s economy can experience negative growth when its gross domestic…
What is Net Income After Tax (NIAT)? Net income after tax (NIAT) is an entity’s profits after deducting all expenses and taxes in a fiscal period. NIAT is also commonly referred to as a company’s bottom-line profitability. How to Calculate Net Income After Tax? Calculating net income after tax involves deducting all expenses and costs…
What is a Non-Qualifying Investment? A non-qualifying investment is a type of investment that can never be subject to any tax benefits. Tax benefits include deductions, exemptions, and credits. The benefits are used to reduce taxable income, and therefore, reduce taxes paid. Hence, a non-qualified investment is any property that is not a qualified investment…
What is a Money Center Bank? A money center bank is a bank that is located in major cities like London, New York, and Hong Kong. It covers regions, countries, and continents, providing a wide range of financial services. Its revenue primarily comes from transactions with large corporations, other retail banks, and governments. They are also…
What is a Money Purchase Pension Plan? A money purchase pension plan is a kind of retirement plan where employers are needed to make yearly contributions to the accounts of their employees. It provides guaranteed income after retirement. The employees can either withdraw the lump sum amount upon retirement or purchase an annuity with the total…
