What are Meeting Minutes? Meeting minutes are notes that are recorded during a meeting. They highlight the key issues that are discussed, motions proposed or voted on, and activities to be undertaken. The minutes of a meeting are usually taken by a designated member of the group. Their task is to provide an accurate record…
What is Extrinsic Motivation? Extrinsic motivation refers to behavior that is driven by external factors, such as a reward or avoidance of negative outcomes. Money is the most obvious example of an extrinsic motivation. Extrinsic motivation factors can be either tangible and intangible. Tangible factors are factors with a physical form. Any type…
What is Vicarious Liability? Vicarious liability is a legal term used to explain the legal responsibility one party may hold for actions that cause harm, even if they aren’t the party that directly caused the harm. Also sometimes referred to as imputed liability, vicarious liability states that any party who is in an authoritative legal…
What is a Pyramid Scheme? A pyramid scheme is an unsustainable business model in which original investors make money by recruiting others rather than by selling actual products or services. The model works by asking new investors to make an upfront payment so that they can be allowed to join the scheme. The money received…
What is a Ponzi Scheme? A Ponzi scheme is considered a fraudulent investment program. It involves using payments collected from new investors to pay off the earlier investors. The organizers of Ponzi schemes usually promise to invest the money they collect to generate supernormal profits with little to no risk. However, in the real sense,…
What is a Feasibility Study? A feasibility study, as the name suggests, is designed to reveal whether a project/plan is feasible. It is an assessment of the practicality of a proposed project/plan. A feasibility study is part of the initial design stage of any project/plan. It is conducted in order to objectively uncover the strengths…
What is Volatility Ratio? Volatility ratio refers to a technical measure of the changes in the prices of a given security. It enables investors and traders to identify price patterns. It is used in technical analysis to understand the current direction of the price movement of a security relative to the previous day, or any…
What is a Volatility Skew? Volatility skew refers to a technical tool that informs investors about the preference of fund managers, whether they prefer to write call options or not. Factors that impact a volatility skew include investor sentiment about the market and the relationship between the supply and demand of given options in the…
What is a Volatility Swap? Volatility swap refers to a financial derivative, the payoff of which is based upon the volatility of the underlying asset of that security, which is a forward contract. Volatility swaps enable investors to trade the volatility of an asset without explicitly trading the underlying asset. The payoff, which is the…
What is a Volatility Smile? A volatility smile refers to a U-shaped graphical representation of the pattern created by the implied volatilities of multiple options contracts that share the same date of expiration. The geographical pattern obtained when the values of different implied volatilities are plotted against the strike prices of their corresponding options; a…
