A method used by brokers to obtain new business by making unsolicited calls to potential clients. There are mixed opinions on the ethicality of cold-calling, many counties have put forward legislation restricting this practice.
A market that is believed to have the potential to make a strong move in one direction after being pushed in the opposite direction. The idea is that if a market should be headed in one direction based on its fundamentals but is pushed in the other direction, it will eventually make a strong move in the original fundamental direction. This coiled move will often be more substantial than what might have been the case if it had gone in the expected direction to begin with. Coiled markets often arise when the market has been held down artificially. This happens in commodities markets, such as gold and silver. Investors looking to capitalize on coiled markets will use both fundamental and technical analysis to identify markets or specific equities that exhibit the characteristics of a coiled market. The origins of this term relate to the physics of a coiled spring: the more it is compressed, the greater the rebound will be.
A market theory that suggests that when a company reveals bad news to the public, there may be many more related negative events that have yet to be revealed. The term comes from the common belief that seeing one cockroach is usually evidence that there are many more that remain hidden. For example, in February 2007, subprime lender New Century Financial Corporation faced liquidity concerns as losses arising from bad loans to defaulting subprime borrowers started to emerge. This company was the first of many other subprime lenders that faced financial problems, contributing to the subprime mortgage meltdown. In other words, the fact that one subprime lender (one cockroach) faced financial problems indicated that many other similar businesses were likely to face the same issues.
A marketing partnership between at least two different brands of goods or services. Cobranding encompasses several different types of branding partnerships, such as sponsorships. This strategy typically associates the brands of at least two companies with a specific good or service. Cobranding is a useful strategy for many businesses seeking to increase their sales and cash flow. Many different types of businesses use this strategy, such as retailers, restaurants, car makers and electronics manufacturers. Studies indicate that cobranding is an effective method of increasing customer loyalty.
A slang term used to refer to something favorable that has happened in business. For example, an employee receiving a raise may reply with the words "cool beans," upon receiving the news. Cool beans is synonomous with "sweet", "that's great news", "awesome", etc. Cool beans is thought to have been popularized in the 1980s.
An accounting practice in which a company uses generous reserves from good years against losses that might be incurred in bad years. cookie jar accounting is a sign of misleading accounting practices. Watch: Cooking The Books This gives the sense of "income smoothing", because earnings are understated in good years and overstated in bad years. You may have heard of companies taking special charges or write-downs - that's just another flavor of cookie jar accounting.
A buzzword describing fraudulent activities performed by corporations in order to falsify their financial statements. Typically, cooking the books involves augmenting financial data to yield previously non-existent earnings. Examples of techniques used to cook the books involve accelerating revenues, delaying expenses, manipulating pension plans and implementing synthetic leases. Watch: Cooking The Books During the first couple of years of the new millennium, large Fortune 500 companies such as Enron and WorldCom were found to have been cooking the books to improve their financial figures. The resulting scandals gave investors and regulators a rude awakening concerning the reality that companies were hiding the ugly truth between the lines of financial data.In order to rally investor confidence, the Sarbanes-Oxley Act of 2002 was created. This act of Congress created policies to protect investors against future incidents of corporate fraud.
The likelihood that significant economic changes in one country will spread to other countries. Contagion can refer to the spread of either economic booms or economic crises throughout a geographic region. Contagion has become a more prominent phenomenon as the global economy has grown and economies within certain geographic regions have become more correlated with one another. An infamous example is the "Asian Contagion", which occurred in 1997 and started in Thailand. The economic crisis in Thailand spread to bordering Southeast Asian countries and then eventually spilled over to Latin America.