Novation
What is Novation? Novation refers to the process of substituting the original contract with a replacement contract, where the original party agrees to forgo any rights afforded to them by the original contract. In most novation agreements, the parties agree to extinguish the original contract and replace it with an entirely new contract. One of...
Holding Company
What is a Holding Company? A holding company is a company that doesn’t conduct any operations, ventures, or other active tasks for itself. Instead, it exists for the purpose of owning assets. In other words, the company does not engage in the buying and selling of any products and services. Instead, it was formed so...
Average Return
What is an Average Return? Average return is the mathematical average of a sequence of returns that have accrued over time. In its simplest terms, average return is the total return over a time period divided by the number of periods. Average return, as in simple average, is calculated by adding a set of numbers...
Backward Integration
What is Backward Integration? Backward integration is a process in which a company acquires or merges with other businesses that supply raw materials needed in the production of its finished product. Businesses pursue backward integration with the expectation that the process will result in cost savings, increased revenues, and improved efficiency in the production process....
NYSE Arca
What is NYSE Arca? NYSE Arca is an electronic securities exchange where exchange-traded products and securities are traded. The exchange was previously known as Archipelago Exchange (ArcaEX) until 2006 when it was acquired by the New York Stock Exchange. The exchange operates as a subsidiary of the NYSE group, and it is based in Chicago,...
