Small Business

  1. Incentive Stock Option - ISO

    A type of employee stock option with a tax benefit, when you exercise, of not having to pay ordinary income tax. Instead, ...
  2. Layoff

    1. When a company eliminates jobs regardless of how good the employees' performance. 2. A risk reduction, made by investment ...
  3. Vendor Financing

    The lending of money by a company to one of its customers so that the customer can buy products from it. By doing this, the ...
  4. Love Money

    Seed money or capital given by family or friends to an entrepreneur to start a business. The decision to lend money and the ...
  5. Monthly Income Preferred Securities - MIPS

    Shares that are an interest in a limited partnership existing solely for the purpose of issuing preferred securities and ...
  6. Mothballing

    The preservation of a production facility without using it to produce. Machinery in a mothballed facility is kept in working ...
  7. Parking

    The illegal practice of selling shares to another party with the understanding that the original owner will buy them back ...
  8. Technical Bankruptcy

    The state of a company or person who has defaulted on a financial obligation and would be declared bankruptcy if the creditor ...
  9. Quid Pro Quo

    A Latin phrase meaning "something for something". This term is typically used in financial circles to describe a mutual agreement ...
  10. Tied Selling

    The illegal practice of a company providing a product or service on condition the customer purchases a product from the same ...
  11. Non-Qualified Stock Option - NSO

    A type of employee stock option where you pay ordinary income tax on the difference between the grant price and the price ...
  12. Transportation Expenses

    An expense incurred by an employee or self-employed taxpayer while away from home in a travel status for business. Travel ...
  13. Razor-Razorblade Model

    A business tactic involving the sale of dependent goods for different prices - one good is sold at a discount, while the ...
  14. Passive Loss

    A financial loss within an investment in any trade or business enterprise in which the investor is not a material participant. ...
  15. Partnership

    A business organization in which two or more individuals manage and operate the business. Both owners are equally and personally ...
  16. Pre-Money Valuation

    A slang phrased that refers to the value of a company's stock before it goes public. The term is often used by venture capitalists. ...
  17. Salary Freeze

    The action of a company suspending salary increases for a period of time. By freezing salary increases for a given period, ...
  18. Salary Reduction Contribution

    A cash- or deferred-contribution arrangement of an employer-sponsored retirement plan, under which participants can choose ...
  19. Publicly Traded Partnership - PTP

    A business organization owned by two or more co-owners, that is regularly traded on an established securities market. A publicly ...
  20. Price Skimming

    A product pricing strategy by which a firm charges the highest initial price that customers will pay. As the demand of the ...
  21. Supply Management

    A broad term describing the various acts of identifying, acquiring and managing the products and/or resources needed to run ...
  22. De-Merger

    A business strategy in which a single business is broken into components, either to operate on their own, to be sold or to ...
  23. Development Stage

    A company that is in a preliminary or early state of its corporate life. A development stage company is characterized by ...
  24. Dialing and Smiling

    A telemarketing technique in which unsolicited, or "cold" calls, are made to prospective clients of a business or service ...
  25. Discharge In Bankruptcy

    A permanent order that releases the debtor from personal liability for certain specified types of debts, thereby releasing ...
  26. Business Logic

    Custom rules or algorithms that handle the exchange of information between a database and user interface. Business logic ...
  27. Dog Eat Dog

    Intense competition in a market. Dog eat dog competition most commonly arises in markets where products or services have ...
  28. Subordinated Debt

    A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known ...
  29. Direct Participation Program - DPP

    A business venture designed to let investors participate directly in the cash flow and tax benefits of the underlying investment. ...
  30. Spinning

    The act by a brokerage firm or underwriter of offering shares in an IPO to preferred customers, as a means of retaining or ...
  31. Siliconaires

    Slang referring to young dotcom entrepreneurs in their 20s and 30s who found themselves suddenly rich due to stock options ...
  32. Shotgun Clause

    A buy-sell provision used by related parties in a business venture which gives an investor within the partnership the right ...
  33. General Partnership

    A arrangement by which partners conducting a business jointly have unlimited liability, which means their personal assets ...
  34. Business Development Bank of Canada - BDC

    A financial institution that is wholly owned by the government of Canada providing financial and consulting services to small ...
  35. Microcredit

    An extremely small loan given to impoverished people to help them become self employed. Also known as "microlending" or ...
  36. Gentleman's Agreement

    An unwritten agreement or transaction backed only by the integrity of the counterparty to actually abide by the terms of ...
  37. Bankruptcy Financing

    Financing arranged by a company while under the chapter 11 bankruptcy process. Clearly, such financing is extremely high ...
  38. Chapter 10

    A type of corporate bankruptcy filing in the U.S. Chapter 10 bankruptcy is restricted to corporate debtors, and is intended ...
  39. National Bureau of Economic Research - NBER

    This private, non-profit, non-partisan research organization's main aim is to promote greater understanding of how the economy ...
  40. Telecommunications Consumer Protection Act of 1991 - TCPA

    A U.S. federal law created in response to increased consumer concern and complaints directed at the Federal Communications ...
  41. Terotechnology

    A word derived from the Greek root word "tero" or "I care", that is now used with the term "technology" to refer to the study ...
  42. Deferred Profit Sharing Plan - DPSP

    An employer-sponsored Canadian profit sharing plan that is registered with the Canadian Revenue Agency. On a periodic basis, ...
  43. Limited Partnership Unit

    An ownership unit in a publicly traded limited partnership, or master limited partnership (MLP). This trust gives the unit ...
  44. Netscaped

    A slang term referring to an instance in which a company gets hurt materially or put out of business as a result of head-to-head ...
  45. Chapter 13

    A U.S. bankruptcy proceeding in which the debtor undertakes a reorganization of his or her finances under the supervision ...
  46. Camouflage Compensation

    Compensation that is granted to upper echelon employees, directors, consultants and related parties that is not fully disclosed ...
  47. Non-Qualified Deferred Compensation - NQDC

    Compensation that has been earned by an employee, but not yet received from the employer. Because the ownership of the compensation ...
  48. Redlining

    The unethical practice whereby financial institutions make it extremely difficult or impossible for residents of poor inner-city ...
  49. Short And Distort

    An illegal practice employed by unethical internet investors who short-sell a stock and then spread unsubstantiated rumors ...
  50. Asset Stripping

    The process of buying an undervalued company with the intent to sell off its assets for a profit. The individual assets of ...
Hot Definitions
  1. Drawdown

    The peak-to-trough decline during a specific record period of an investment, fund or commodity. A drawdown is usually quoted ...
  2. Inverse Transaction

    A transaction that can cancel out a forward contract that has the same value date.
  3. Redemption

    The return of an investor's principal in a fixed income security, such as a preferred stock or bond; or the sale of units ...
  4. Solvency

    The ability of a company to meet its long-term financial obligations. Solvency is essential to staying in business, but a ...
  5. Dilution

    A reduction in the ownership percentage of a share of stock caused by the issuance of new stock. Dilution can also occur ...
  6. Agency Problem

    A conflict of interest inherent in any relationship where one party is expected to act in another's best interests. The problem ...
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