Goods that are perceived to be exclusive as long as prices remain high or increase. Veblen goods get their name from economist Thorstein Veblen, who was one of the first to look into and write about conspicuous consumption and the concept of seeking status through consumption. Veblen goods are often referred to as "status symbols". High-status items such as luxury cars, expensive shoes or pricey watches remain appealing to certain consumers as long as prices remain high or increase. A decrease in the price of a Veblen good could cause it to become less exclusive, which may reduce consumers' fondness for it.
An element that undermines the entire system. Weak sister can either refer to a single individual or a specialized group considered to be the weak link in an integrated process. Usually referring to an undependable member of a group environment, the weak sister can also be a malfunctioning part of a team oriented task. For example, the slowest member in an assembly line or a slow marketing team which hinders the overall performance of operations is referred to as the weak sister.
1. The intention of futures contract holders not to receive delivery of the underlying.2. Retail traders in the forex market who abide by the conventional wisdom that when a pattern is broken, get out. 1. Futures contract holders with weak hands are generally considered to be small speculators without the financial resources associated with the delivery and storage.2. For example, retail traders with weak hands would place a stop at the bottom of a double bottom or at the top of a double top and once the pattern is broken, they would automatically be stopped out. Conversely, dealer and institutional traders will exploit this behavior by staying in once the pattern is broken, forcing the weak hands out before allowing the price to change direction and the pattern to correct itself.
A situation in which two events or actions have the effect of nullifying each other. In terms of investment, this could be when the gains in a portfolio equal the losses. This is another way of saying that you've broken even.
An illegal stock trading practice where an investor simultaneously buys and sells shares in a company through two different brokers. This increases the activity in the stock and gives the impression that "big news" is about to come out.
The economic impact felt by local businesses when a large firm such as Wal-Mart opens a location in the area. The Wal-Mart effect usually manifests itself by forcing smaller retail firms out of business and reducing wages for competitors' employees. Many local businesses oppose the introduction of Wal-Marts into their territories for this reason. The Wal-Mart effect is not all bad; it can also curb inflation and help to keep employee productivity at an optimum level. The chain of stores can save consumers billions of dollars, but may also reduce wages and competition in an area.
A fund that buys securities in distressed investments, such as high-yield bonds in or near default, or equities that are in or near bankruptcy. Even highly leveraged firms may be targeted if there is a chance that the owners will not be able to make all required debt payments. As the name implies, these funds are like circling vultures patiently waiting to pick over the remains of a rapidly weakening company. The goal is high returns at bargain prices. Some people have looked down upon hedge funds that operate like vulture funds, which have preyed on the cheap debt of struggling companies and forced these companies to pay it back, plus interest.
1. A slang word for a venture capitalist who deprives an inventor of control over their own innovations and most of the money they should have made from the invention. 2. A venture capitalist who invests in floundering firms in the hopes that they will turn around. Like them or not, many vulture capitalists make more money than the venture capitalists do.