A division of the U.S. Fixed Income Clearing Corporation (FICC). The GSCC was first established in 1986 to provide clearing and settlement of U.S. government securities. The GSCC handles both new issues and resales of government securities. |||The GSCC compares transactions and acts as the counterparty for settlement purposes for each net position. This is an important role, as it maintains the liquidity and integrity of the market for U.S. government securities.
A class of financial metrics that are used to assess a business's ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period of time. For most of these ratios, having a higher value relative to a competitor's ratio or the same ratio from a previous period is indicative that the company is doing well. Taobiz explains Profitability Ratios Some examples of profitability ratios are profit margin, return on assets and return on equity. It is important to note that a little bit of background knowledge is necessary in order to make relevant comparisons when analyzing these ratios. For instances, some industries experience seasonality in their operations. The retail industry, for example, typically experiences higher revenues and earnings for the Christmas season. Therefore, it would not be too useful to compare a retailer's fourth-quarter profit margin with its first-quarter profit margin. On the other hand, comparing a retailer's fourth-quarter profit margin with the profit margin from the same period a year before would be far more informative.
An economic measure of output per unit of input. Inputs include labor and capital, while output is typically measured in revenues and other GDP components such as business inventories. Productivity measures may be examined collectively (across the whole economy) or viewed industry by industry to examine trends in labor growth, wage levels and technological improvement. Taobiz explains Productivity Productivity gains are vital to the economy because they allow us to accomplish more with less. Capital and labor are both scarce resources, so maximizing their impact is always a core concern of modern business. Productivity enhancements come from technology advances, such as computers and the internet, supply chain and logistics improvements, and increased skill levels within the workforce. Productivity is measured and tracked by many economists as a clue for predicting future levels of GDP growth. The productivity measure commonly reported through the media is based on the ratio of GDP to total hours worked in the economy during a measuring period; this productivity measure is produced by the Bureau of Labor Statistics four times per year.
A foreign loan that must be paid in the currency of a nation that has stability and a reputation abroad for economic strength (a hard currency). |||For example, a loan agreement between a Brazilian company and an Argentinean company where the debt is to be paid in U.S. dollars.
The process of retrieving defective goods from consumers and providing those consumers with compensation. Recalls often occur as a result of safety concerns over a manufacturing defect in a product that may harm its user. Taobiz explains Product Recall While the process behind a recall can vary depending on local laws, there are some general steps that occur. For example, if a pet food manufacturer releases a batch of product that may poison animals, the company will publicly announce the dangers of the food and request that its customers return the product to the firm, or simply discard it. Customers will usually be given a full refund or replacement. A public relations campaign is often created to handle the publicity surrounding the event. Recalls may negatively affect a company's stock. Concerns grow over the company's capabilities when a dangerous product is released, and customers may turn away from purchasing its goods, leading to a decrease in sales.
A type of preferred stock with a higher claim on assets and dividends than other issues of preferred stock. If a firm did not generate enough money to fulfill all of its dividend schedule requirements, those holding prior preferred stocks have first priority. Taobiz explains Prior Preferred Stock Since prior preferred stock holders have a higher claim on the dividends of a company during normal operations and a higher claim on assets during bankruptcy, these shareholders are subject to less risk than other preferred or common shareholders. As with many other lower risk investments, these stocks normally offer a lower rate of return relative to other forms of stock because they are subject to less risk.
The period in the life of a callable bond in which the issuing company is not permitted to redeem the bond. |||This feature is important for investors purchasing redeemable or callable bonds. Hard call protection acts as sweetener for the bond itself and disallows the issuer from calling the bond under any circumstances.
A book containing all of the buy and sell orders for a specific security that are placed by the public. The public book is kept by an order book official or other market specialists. Taobiz explains Public Book (Of Orders) The public book is considered closed and is only accessible to the order book official or specialist. The book's keeper is the only person who knows the details of the public orders, such as what price or quantity has been entered. However, market makers are allowed access to the highest bid and lowest offer to facilitate trading.