The preservation of a production facility without using it to produce. Machinery in a mothballed facility is kept in working order so that production may be restored quickly if needed. A desirable production strategy for a company that has high operating costs, mothballing allows a factory produce goods upon demand instead of on a continual basis.
The stocks on an exchange that had the highest volume over a given period. The most common time period used is a single trading day. Generally, most-active stocks are those with the most shares traded over one day. Usually, stocks experience higher-than-normal trading volume due to significantly important new information affecting the stock reaching the market. This creates a strong impetus amongst investors to either buy or sell the stock, resulting in heavier trading volume, and often strong momentum in the stock as well.
A type of municipal agreement that pays holders based on revenues generated from real estate. Financial institutions also typically offer these bonds at relatively low interest rates. Proceeds are used to provide funds to these institutions, which in return use the funds to make low interest rate mortgage loans. Municipalities would use such bonds to fund public construction projects, for example. Borrowers of these mortgages are responsible for interest and principal payments. Watch: Mortgage-Backed Securities Sometimes referred to as a housing bond, which is issued by a local housing authority. These bonds can either be short- or long-term, and are often used for construction of low- or middle-income housing or projects that help the community and the environment. Short-term bonds are typically sold as $5,000 denominations with a maturity that varies between 18 months to four years. Longer-term bonds are issued under federal agency contracts.
A term used by medical companies and professionals to signify that a procedure or drug has been recognized to be advisable or necessary. New indications refer to new applications of an existing prevention, diagnosis or treatment of a disease. It is a positive report provided by credible professionals through established testing techniques. The next step is usually clinical trials before official approval by the country's regulatory association. News releases on medical treatments and pharmaceutical companies often use the term new indications when referring to drugs or equipment. For example, drug company ABC could announce the new indication for Drug Z. This would signal a potentially higher demand for drug Z because of forecasted additional uses on top of previous ones. This could also signal the underlying company's potentially higher share value.
A buzzword describing new, high-growth industries that are on the cutting edge of technology and are the driving force of economic growth. The new economy is commonly believed to have started in the late 1990s, as high tech tools, such as the internet, and increasingly powerful computers, began penetrating the consumer and business marketplace. The thought that a "new economy" had arrived was evident in the hysteria surrounding the tech-bubble of the late '90s and early 2000s. Without fully considering macroeconomic factors, investors and financial institutions bid up stock prices to unprecedented highs. Although the tech bubble has long since burst, the remaining firms have remained very innovative and at the forefront of technology. Companies in the new economy are heavily involved in the internet and biotech industries, but the ripple effects of new technologies has spread out to all other industries as well.
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 competition with Microsoft. Microsoft's size, resources and expertise mean there is always a risk that the company will steal market share. Many competitors have tried to beat the software giant and ended up suffering serious damage. This term is derived from what happened in the 1990s in the market for internet browsers. Originally, Netscape was the leader, and its cutting-edge browser controlled a large portion of the market. However, Microsoft put huge resources into developing its own browser, Internet Explorer, which gobbled up market share from Netscape. This dashed Netscape's hopes for any long-term success. Some critics questioned the legality of Microsoft's competition strategy, which essentially consisted of giving Internet Explorer away for free by bundling it with the Windows operating system. In the end, it didn't matter - a decimated Netscape was bought out by America online in 1998.
A summary of all the costs associated with bringing one unit of oil to the marketplace, and all of the revenues from the sale of all the products generated from that same unit. The netback is calculated by taking all of the revenues from the oil, less all costs associated with getting the oil to a market. These costs can include, but are not limited to, importing, transportation, production and refining costs, and royalty fees. For example, let's say it costs a total of US$125 to convert one barrel of light crude oil into heating oil, gasoline, diesel and petrochemical byproducts. Next, assume that all of those products could sell for a total of US$200. The netback in this example would be $75 ($200 - $125). Keep in mind that the costs associated with converting one barrel include all of the costs the company incurred to get that barrel to the marketplace.This figure allows exploration and production firms to compare their costs with those of their competitors; it also allows for more efficient planning regarding which products a company should focus on producing.
An investor who isn't comfortable with investing and the risks associated with it. If a nervous nellie ever does decide to invest, he or she is likely to liquidate the investment at any time.