What is a Non-Executive Director? A non-executive director is a member of a company’s board of directors who does not hold an executive office. Non-executive directors act as independent advisors and are not responsible for the daily operations of the company. However, they face the same legal responsibilities and liabilities as the executive directors and…
What is the Average True Range? The average true range (ATR) is a price volatility indicator showing the average price variation of assets within a given time period. Investors can use the indicator to determine the best time for trading. The average true range also takes into account the gaps in the movement of price….
What is a Voluntary Accumulation Plan? A voluntary accumulation plan is a plan that allows mutual fund investors to purchase shares consistently to develop their investment over a period of time. It usually refers to shareholders putting in a fixed amount of money regularly regardless of the number of shares that can be bought with…
What is an Automatic Premium Loan? An automatic premium loan is a provision in a life insurance policy that allows the insurer to automatically deduct the premium amount overdue from the policy value whenever the policyholder is unable – or neglects – to pay the premium. The insurance issuer makes a loan against the policy’s…
What is Netting? Netting is a process by which an exposure or obligation is reduced by combining two or more positions. The value of multiple positions is analyzed and offset, and eventually, the parties that need to be paid and pay are determined. Multilateral netting involves more than two parties. Netting is used for several…
What is Net-Net? Net-net is a term used for a company with a market capitalization that is less than the difference between the company’s current assets and total liabilities. The equation does not consider long-term assets, such as property, plant, and equipment (PP&E), and intangibles. Net-net investing is used with the underlying understanding…
What are the Pros and Cons of Solar Energy? What are the pros and cons of solar energy? Many people mistakenly believe that there aren’t any negatives related to solar power. But the truth is that solar energy, just like any other power source, comes with a number of trade-offs – both advantages and disadvantages….
What is a Universal Basic Income (UBI)? While it does not yet exist as a practical reality in the United States, the concept of a universal basic income – or UBI – is similar to the concept of minimum wage. Each individual receives an agreed-upon minimum income (basic income) with the intent that the income…
What are Non-Renounceable Rights? Non-renounceable rights are issued by the company offering the shareholders the option to purchase additional shares of the company, usually at a price lower than the market price. The rights can neither be transferred to other investors nor sold in the market. Non-renounceable rights lapse if not exercised. Non-renounceable rights are…
What are SMART Goals? Goals are part of every aspect of business/life and provide a sense of direction, motivation, a clear focus, and clarify importance. By setting goals, you are providing yourself with a target to aim for. A SMART goal is used to help guide goal setting. SMART is an acronym that stands for…
