A term coined by renowned investor Warren Buffett referring to a situation in which high-ranking insiders use their own money to buy stock in the company they are running. The idea behind creating this situation is to ensure that corporations are managed by like-minded individuals who share a stake in the company. Executives can talk all they want, but the best vote of confidence is putting one's own money on the line just like outside investors!
Stock from companies that are associated with (or are directly involved in) activities that are widely considered to be unethical or immoral. Also known as "sin stock". Examples of activities some people may consider sinful include the distribution or production of alcohol, tobacco, weapons and sex-related products.
A form of severance that is paid to employees of a company should the company be taken over by another. Like golden parachutes--which are received by the top executives in the corporation--silver parachutes include severance pay, stock options and bonuses but are offered to a larger number of employees.
An attitude found in some organizations that occurs when several departments or groups do not want to share information or knowledge with other individuals in the same company. A silo mentality reduces efficiency and can be a contributing factor to a failing corporate culture. Managers of successful firms spend a lot of their time trying to ensure that information flows freely between departments to ensure that all aspects of the company are functioning effectively. Contemporary management views suggest that the silo mentality mindset must be broken in order for employees to remain motivated and be happy to come to work. Efficient companies promote the sharing of information in an attempt to let the combination of groups function as a team.
Slang referring to young dotcom entrepreneurs in their 20s and 30s who found themselves suddenly rich due to stock options from their Silicon Valley Internet companies. With the dotcom boom and the rise in stock price of many different high-tech companies, many people working in or associated with Silicon Valley quickly found gains in wealth.
Nickname for the region in North California (around San Jose) that contains a huge concentration of computer and internet companies. In case you were wondering, silicon is the semiconductor material used to produce the computer chips that have made the internet possible.
The idea that insiders have information not available to the market. Moves made by insiders can signal information to outsiders and change the stock price. The thinking goes that if a high level executive, such as a CEO, is selling, he or she is probably doing so for a reason that you, as the public, don't know yet, so you should get out also. The same is true for the opposite. If an insider is buying stocks in his or her company, it signals outsiders to also buy based on the idea that the insider knows more than he or she is letting on to the public.
The amount by which inventory on hand is shorter than the amount of inventory recorded. The missing inventory could be due to theft, damage, or book keeping errors.