What is a No-Transaction-Fee (NTF) Mutual Fund? A no-transaction-fee (NTF) mutual fund refers to mutual funds that do not charge trading fees for the transactions made. They are also known as no-load mutual funds. Investors can buy and sell the shares of a no-transaction-fee mutual fund without paying sales commission, which is favorable to them….
What is a Non-Accredited Investor? A non-accredited investor refers to investors who fail to meet the net worth or income requirements defined by the Securities and Exchange Commission (SEC). Non-accredited investors are also known as retail investors. Being a non-accredited investor does not mean that the individual cannot invest; however, investment opportunities for them are…
What is Diffusion of Innovation? Diffusion of Innovation (DOI) is a theory popularized by American communication theorist and sociologist Everett Rogers in 1962 that aims to explain how, why, and the rate at which a product, service, or process spreads through a population or social system. In other words, the diffusion of innovation explains the rate…
What is the Product Life Cycle? The Product Life Cycle (PLC) defines the stages that a product moves through in the marketplace as it enters, becomes established, and exits the marketplace. In other words, the product life cycle describes the stages that a product is likely to experience. It is a useful tool for managers…
What are Data Assets? Data assets refer to a system, application output file, document, database, or web page that companies use to generate revenues. They are some of the most valuable assets in the technology era, and organizations spend billions of dollars managing such assets. Maintaining a company’s data assets helps companies improve their decisions,…
What is Layaway? Layaway is a purchasing arrangement where a retailer reserves and stores an item for a customer who has a predetermined period to pay for the item in full. The customer typically enters into an agreement to pay the full price for the item within an agreed period of time; failure to do…
What is the American Dream? The “American Dream” is a sort of ethos or set of beliefs that drive many U.S. citizens as they work toward creating a life for themselves. This set of ideals – which includes notions of individual rights, freedom, democracy, and equality – is arguably centered around the belief that each…
What is a Service Charge? A service charge, also called a service fee, refers to a fee collected to pay for services that relate to a product or service that is being purchased. In other words, a service charge is an additional charge for the service provided with the purchase of a product or service….
What is an Employee Background Check? An employee background check refers to a review of a person’s past record to compile their criminal, financial, and commercial records. Background checks are common when organizations are hiring employees for a position of trust and want the assurance that they are hiring the right people for the job….
What is a Bank Stress Test? A bank stress test is a simulation or analysis conducted to analyze how a bank will be impacted under adverse market conditions – for example, a financial market crash or recession. The analysis is conducted by stress-testing a bank’s balance sheet under hypothetical market conditions and economic variables, i.e.,…
