Founded in 1940, the Investment Company Institute, based in Washington, D.C., is the national trade association of U.S. investment companies, which includes mutual funds, closed-end funds, exchange-traded funds and unit investment trusts. |||The ICI encourages high ethical standards for all industry participants, advances the interests of its members, promotes public understanding of the fund industry and undertakes statistical studies and research on matters related to the fund business. The ICI publishes an annual "Fact Book" in May. It provides a comprehensive review of trends, activities and statistics on mutual funds, exchange-traded funds and closed-end funds.
A slang term used to describe an investment purely as a momentum play, not worrying about the company's fundamentals. This is practiced more often by day traders.
A colloquial term for a small, independent, family-owned business. Unlike franchises and large corporations, which have multiple operations in various locations, mom and pop shops usually have a single location that often occupies a physically small space. The “shop” could be any type of business, such as an auto repair garage, bookstore or restaurant. "Mom and pop" can also refer to inexperienced investors who play the market casually and do not rely on trading to significantly supplement their income. Mom and pop shops sometimes have difficulty competing with larger businesses' buying power. This competitive disadvantage often results in high prices at mom and pop operations. Mom and pop shops are able to stay competitive by differentiating themselves from their large-scale competitors with a unique product, exceptional service and/or other personalized feel.
A Japanese abbreviation for the Japan Federation of Economic Organizations. The Keidanren was created in 1946 to address the issues and concerns of Japanese businesses in the postwar world. The organization consisted of over 1,000 Japanese businesses, over 50 of which were foreign firms. |||The Keidenran was incorporated into the Japanese Business Federation in May of 2002. This organization was joined by the Nikkeiren, the Japanese Federation of Employers' Associations. The Keidenran was historically considered the most conservative of the three major business associations in Japan.
The illegal practice of attempting to push the price of a stock lower by taking large short positions and spreading unfavorable rumors about the target firm. Taobiz explains Bear Raid In a bear raid, the manipulators profit on the difference between the original stock price and the lower (manipulated) price. This was a popular practice in the early 1900s.
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.
A professional designation provided by the International Research Association (IRA) designed for investment professionals throughout the world. The Licensed International Financial Analyst (LIFA) designation attempts to help candidates attain higher levels of professionalism and ethics in the global industry of investment management and analysis. The LIFA examinations require an in-depth knowledge of investment principles, along with an understanding of global capital markets. |||Similar to the Chartered Financial Analyst (CFA) designation, the LIFA designation requires candidates to pass three proctored examinations. Also similar to the CFA designation, the examinations attempt to keep the pass rate at an acceptable (or lower) level. The IRA believes that the validity of the designation is based on pass rates, and thus the quality of the designees: lower pass rates equal a more valuable designation.
The investment approach that aims to follow the strategies implemented by Benjamin Graham. The Benjamin Method of investing is based on fundamental principals of value investing, which is the process of discovering undervalued stocks. Benjamin Graham, the founder of value investing, was primarily concerned with minimizing losses rather than maximizing profits. Taobiz explains Benjamin Method The Benjamin Method focuses on such metrics as the P/E ratio, which enables investors to determine how expensive the earnings of a company are relative to its competitors. However, rather than simply relying on static metrics, a full picture can only be determined by examining the quality of the earnings, as well as other corporate performance measures.