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.
A tax on the value of a piece of land. Land value tax inherently makes up a portion of all real estate property tax; however, land value tax takes only the fair value of the land into account. The taxation of land is very straightforward, requiring only a valuation of the land. |||Some argue that land value tax is the best tax in terms of economic efficiency. Since the availability of land is inelastic, the value of land is therefore determined by the rules of supply and demand. Land value taxes are implemented in numerous countries around the world, including the United States, namely in Pennsylvania.
The number of shares a buyer is willing to purchase at the quoted bid price. Taobiz explains Bid Size For example, if the bid price is $20 and the bid size is 2000, that means someone is willing to purchase 2000 shares @ $20 per share.
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.
A qualified retirement plan that combines an employee's stock ownership plan (ESOP) with a 401(k). Under this type of retirement plan the company will match employee contributions with stock rather than cash. KSOPs benefit companies by reducing expenses that would arise by separately operating an ESOP and 401(k) retirement plans. |||Using a KSOP is a great option for companies when their shareholders are looking to sell their shares in the company. The KSOP instantly creates a market with sufficient liquidity that is needed for those shareholders wishing to sell their stake. KSOPs also provide added motivation to employees to ensure the profitability of the company. This is because the added profitability would directly enhance their retirement plans.
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.
The highest quoted bid for a particular stock among all those offered by competing market makers. Taobiz explains Best Bid Simply put, this is the highest price someone is willing to pay for an asset.
A standard form in the investment industry that ensures investment advisors know detailed information about their clients' risk tolerance, investment knowledge and financial position. |||KYC forms protect both clients and investment advisors. Clients are protected by having their investment advisor know what investments best suit their personal situations. Investment advisors are protected by knowing what they can and can not include in their client's portfolio.