Investment Terms

Retail Fund

Retail Fund: Open to anyone who wants to join, offering a range of investment and insurance options; registered with the Securities and Exchange Commission (SEC) and sold to individual investors through investment dealers and in open market transactions. Often categorized as mutual funds, retail funds carry lower initial investments and management expense ratios than non-retail funds. Because retail funds are registered with the SEC, they are restricted in the amount of overall risk they can expose themselves to.

Source: Investopedia

Same-store Sales

Same-store Sales: Also referred to as “comps,” a statistic used in retail industry analysis. Same-store sales measure percentage changes in revenue for retailers’ stores that have been open for more than a year. This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of new stores. This analysis is import because, although new stores are good, a saturation point – where future sales growth is determined by same store sales growth – eventually occurs.

Source: Investopedia, Fool.com

Sell in May and Go Away

Sell in May and Go Away: A well-known adage amongst stock traders, this idiom warns investors to sell their stock holdings in May to avoid the seasonal decline in equity markets. The commonly held belief that contributes to this adage is that the investor who sells their holdings in May and returns to the equity market in November will benefit by avoiding the often volatile months of June-October.

Source: Wikipedia, Investopedia

Super Bowl Indicator

Super Bowl Indicator: an indicator based on the superstition that a Super Bowl win for a team from the old AFL (now AFC division) foretells a bear market (down market) for the coming year, and a win for a team from the old NFL (NFC division) means it will be a bull market (up market). It was “discovered” by sportswriter Leonard Koppett in the 1970s

Sources: Investopedia, Wikipedia, Business Dictionary

Sword of Damocles

Sword of Damocles: A metaphor based on Greek legend of the constant fear present in the lives of those with great responsibility. Damocles was a courtier for King Dionysis. After constantly praising Dionysis’ great fortune, Damocles was offered the chance to switch roles with Dionysis. When Damocles became king a sword appeared over his head suspended by only a single horse hair. The fear that the sword would fall proved too much for Damocles. He begged Dionysis to let him return to his role as a courtier.

Source: Wikipedia

Syriza Party

Syriza Party: also known as the Coalition of the Radical left, a left-wing political party in Greece, made up of left-wing and radical left parties. Originally comprised of 13 groups and independent politicians including democratic socialists, left-wing populist, green populist, Maoist, Trotskyist and eurocommunists. Syriza is considered an anti-establishment party. It is the second largest political party in Greece and recently became its most popular as well.

Source: Wikipedia

Tightening Cycle

Tightening Cycle: All credit cycles go through periods of time in which funds are relatively easy to borrow. A tightening cycle is a period characterized by lower interest rates, lower lending requirements and an increase in the amount of available credit. These periods are followed by a contraction in the availability of credit. During the tightening cycle, interest rates climb and lending requirements become stricter. The contraction period continues until risks are reduced for lending institutions, at which point the cycle begins again.

Sources: Investopedia, Business Dictionary

Trade Deficit

Trade Deficit: Occurs when a country’s imports are greater than its exports. It also represents an outflow of domestic currency to foreign markets. A trade deficit is an economic measure of a negative balance of trade which isn’t necessarily problematic because it often corrects itself over time. However, the U.S. trade deficit has been growing in the U. S. in recent decades, raising concern among some economists.

Source: Investopedia

Unemployment

Unemployment: Unemployment occurs when someone actively searching for a job is unable to find employment. Often used as a measure of the health of an economy, the unemployment rate is the number of unemployed divided by the total labor force. The U.S. Bureau of Labor Statistics’ uses the “U-3” unemployment rate as the unofficial unemployment rate but this rate does not include discouraged unemployed workers who are no longer actively looking for work.

Source: Investopedia

Unit Labor Costs

Unit Labor Costs: A productivity measure calculated by dividing total labor compensation and benefits by real output. Profitability decreases with each increase in unit labor costs. Companies can pass along higher labor costs to its customers. When economists see unit labor costs increase, it’s an indicator of potential inflation. 

Source: American Heritage Dictionary of Business Terms

U.S. Census Bureau

U.S. Census Bureau: Founded under Article I, Section II of the U.S. Constitution 1787 and formally declared a permanent office in 1903 by President Theodore Roosevelt, the U.S. Census Bureau is responsible for conducting a count of the U.S. population every 10 years. The data collected is used to determine the number of House representatives for each state as well as allocation of federal funding.

Source: Wikipedia, census.gov