What Does Brick and Mortar Mean? Brick and mortar is the common term used to reference a retailer or business that operates a minimum of one physical location. It references the material used to construct a physical location, although, of course, not all physical locations are actually built using bricks and mortar. Why the Term…
What is Value Engineering? Value engineering refers to the systematic method of improving the value of a product that a project produces. It is used to analyze a service, system, or product to determine the best way to manage the important functions while reducing the cost. Value engineering encourages using alternative methods and materials that…
What is the Valuation Period? The valuation period refers to the time at the close of the business day, during which variable investment options are assigned a specific market value. Valuation is the comparison of equity offers or the calculation of an investment’s value and is conducted at the end of each business day by…
What is Valuable Papers Insurance? Valuable papers insurance is a type of insurance policy that insures an organization’s valuable documents such as corporate charters, trust, and share certificates from a specific peril. Such documents are usually important to the business or the owners because they possess monetary value. Businesses can purchase the valuable…
What is a Valuation Reserve? A valuation reserve refers to the assets that life insurance companies set aside as a hedge against the decline in the asset’s value or unexpected market upheavals. The assets are allocated as per state law to protect the asset portfolio against devaluation risks. The existence of valuation…
What is Cumulative Voting? Cumulative voting, also called accumulation voting or weighted voting, is a multi-voting system used by companies to promote a more proportional representation for shareholders. In cumulative voting, each shareholder is entitled to one vote per share, multiplied by the number of available director positions, with the votes being distributed in whatever…
What is a Valoren Number? A valoren number is an identification number that is assigned to financial instruments such as stocks and bonds trading in Switzerland. The term “valor” is a Swiss-German term that means “security,” and it may include paper money and coins. Swiss people often use the terms “Valor Number” to refer to…
What is Notching? Notching is a general practice by credit rating agencies to compare ratings of different issuers across a single class of obligations or closely related entities. A comparison of the ratings of different companies is used to reflect the credit-specific risks. Liabilities can be notched lower or higher because of the varying degree…
What is a Greenfield Investment? In economics, a greenfield investment (GI) refers to a type of foreign direct investment (FDI) where a company establishes operations in a foreign country. In a greenfield investment, the company constructs new (“green”) facilities (sales office, manufacturing facility, etc.) cross-border from the ground up. According to the Bureau of Economic…
