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Editor Picks

  1. Catastrophe Loss Index - CLI

    An index used in the insurance industry to quantify ...
  2. Catastrophe Swap

    A customizable financial instrument traded in the over-the-counter ...
  3. Vis Major

    A Latin term meaning "act of God", or an occurrence ...
  4. Water Damage Insurance

    A type of protection provided in most homeowners insurance ...
  5. Winter Range Form

    A type of insurance that covers livestock, including ...
  6. Water Exclusion Clause

    A restriction in a homeowner's or renter's insurance ...

Recently Added

  1. Legal Tender

    Any official medium of payment recognized by law that can be used to extinguish a public or private debt, or meet a financial obligation.
  2. Reputational Risk

    A threat or danger to the good name or standing of a business or entity.
  3. Growth Of 10K

    A graph that shows the change in value of an initial $10,000 investment over a period of time.
  4. The Smith Maneuver

    A strategy that makes interest on a residential mortgage tax-deductible in Canada.
  5. Use Tax

    A sales tax on purchases made outside one’s state of residence on taxable items that will be used, stored or consumed in one’s state of residence and on which no tax was collected in the state ...
  6. Guerrilla Trading

    A very short-term trading technique that aims to generate small profits while taking on very little risk per trade, and repeating this multiple times in a trading session. Guerrilla trades typically ...
  7. Golden Leash

    Special incentives offered to directors being nominated to serve on the board of a company by a major shareholder. A golden leash is designed to offer an incentive to the nominee directors to ...
  8. Sequestration

    A term adopted by Congress to describe a fiscal policy process that automatically reduces the federal budget across most departments and agencies. Sequestration, or "the sequester," ...
  9. Demographic Dividend

    The freeing up of resources for a country's economic development and the future prosperity of its populace as it switches from an agrarian to an industrial economy. In the initial stages of this ...
  10. Hot Hand

    The notion that because one has had a string of successes, he or she is more likely to have continued success. For example, if one flipped a (fair) coin and guessed correctly that it would land ...
  11. House Money Effect

    The tendency for investors to take more and greater risks when investing with profits. The house money effect gets its name from the casino phrase "playing with the house's money." The house ...
  12. Environmental Tariff

    A tax placed on products being imported to or exported from countries with unsatisfactory environmental pollution controls. An environmental tariff is, in effect, a sin tax, designed to make ...
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Hot Definitions
  1. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.
  2. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.
  3. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.
  4. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.
  5. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.
  6. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.
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