This occurs when a company or business has a financial loss or lackluster returns on an investment during a specific period of time. Some businesses report a negative return during their early years because of the amount of capital that initially goes into the business to get it off the ground. New businesses generally do not begin making a profit until after a few years of being established. Also referred to as negative return on equity. A new business that has invested $500,000 into equipment, tools, repairs or any other operational expenses and is losing $50,000 annually will have negative return on capital of 10%. If the company is able to realize a return on equity in the near future, then the impact of this initial negative return can be overcome. Investors in the company will be willing to stick around if they know that the company has the potential to quickly turn its negative return into a positive return and bring in high profits, sales or asset turnover. Stocks and other investments can also have a negative return.
Otherwise known as Yasuo Hamanaka, Mr. Copper was a trader in the copper market who lost over $2.5 Billion for his employer, Sumitomo Corp. (in Japan). The losses amassed from unauthorized trading in secret accounts between 1985 and 1996. He was also referred to as "Mr. 5%" because at one point he controlled 5% of the world copper market. Hamanaka's scandalous activities represent the greatest unauthorized trading loss in history.
In the investing world, a totally new way of doing things that has a huge effect on business. The word "paradigm" is defined as a pattern or model, and it has been used in science to refer to a theoretical framework. The term "new paradigm" was overused during the dotcom boom years. Anything and everything involved with the Internet was described as a "new paradigm" or a "paradigm shift."
A buzzword that describes the economic philosophy of U.S President Barack Obama. Obamanomics calls for lower tax rates for companies that meet certain criteria, such as providing decent healthcare and maintaining a U.S. workforce and headquarters. Obama's economic platform also calls for higher taxes for high-income families and investment in education, healthcare and the sciences. Obamanomics generally stands in opposition to supply-side, or "trickle-down", economics, which holds that people (including the rich) should keep more of what they earn because they will spend that money, promoting economic growth. Obamanomics shares some similarities with Keynesian economics, which states that active government intervention and monetary policy can smooth out bumps in economic cycles and promote stability.
A resource of economic value that cannot be readily replaced by natural means on a level equal to its consumption. Most fossil fuels, such as oil, natural gas and coal are considered nonrenewable resources in that their use is not sustainable because their formation takes billions of years. Nonrenewable resource fuels are still the primary source of all the power generated in the world due to their affordability and high energy content. Besides the environmental impact of burning fossil fuels, the economic impact of nonrenewable resources can also be very damaging. As nonrenewable resources become more scarce, the cost to obtain them will continue to rise. Eventually, the price will hit a point that end users cannot afford, forcing a move toward alternative energy sources.
The buying power of a U.S. dollar in the city of New York. The New York dollar is calculated by subtracting the additional cost of living in New York, and then adding back the additional income residents tend to command as a result. once calculated, the remaining amount is a rough estimate of what your dollar is worth in this very expensive city. Living in New York is much more expensive than most other places in America. A dollar earned and spent in this city does not go as far, and once this is taken into account, you are left with the New York dollar. For example if you take $1 and subtract the additional cost of housing (15 cents), taxes (5.2 cents), basic costs (4.1 cents) and lifestyle (13.3 cents), and then add additional wages paid (16 cents), you are left with the buying power of a dollar in New York: 100 - 15 - 5.2 - 4.1 - 13.3 + 16 = 78.4 cents.
To reveal what is being planned or to share important information freely. Similar to ''open the books'' or an "open door policy," opening the kimono means revealing the inner workings of a project or company to an outside party. Also referred to as "open (up) one's kimono". The kimono is a Japanese traditional garment. There are conflicting entomologies for this phrase, but the one closest to its current business connotation is the idea Japanese loosening their kimonos to relax at home, much like loosening a tie. The term joined the business lexicon in the late 1980s during a period of increased global business interaction, most notably between western and Japanese businesses.
A company or a location that offers a multitude of services to a client or a customer. The idea is to provide convenient and efficient service and also to create the opportunity for the company to sell more products to clients and customers. For example, a bank may be able to offer you not only personal banking services and loans, but also investment advice, investment vehicles and insurance policies. Compared to visiting a separate institution for each area of need, the "one-stop shop" saves the consumer a lot of time and effort.