April 2012
33 posts
1 tag
Risk Tolerance
The ability to manage stress and expectations when the outcome of events is unknown.
Usage: Different people have different levels of risk tolerance when it comes to gambling.
1 tag
Window Dressing
Trading stocks to make sure the quarterly reports reflect a desired portfolio of stocks as compared to the stocks owned between reporting periods. Also refers to the use of accounting tricks.
Usage: The accountants were window dressing so the results would be consistent with the executive’s compensation goals.
1 tag
Beta
A statistical measure of a company’s stock volatility, or variability, in relationship to the rest of the stocks in the stock market.
Usage: A high beta stock is one with wide swings in price from day to day or week to week.
Volatility
The quality of a price, generally for a stock or security, to widely fluctuate over a short period of time.
Usage: Stock portfolios with a lot of volatility tend to make investors very nervous.
Uncertainty
The state of being doubtful; acknowledgment that the future is unknown. Commonly used when laws, governments, and trends are in flux.
Usage: Stock market commentators frequently claim that uncertainty is the cause when stock prices fall for no specific reason.
1 tag
Dealbreaker
The one set of circumstances that will end discussions in a negotiation.
Usage: The deal team did not want the owner’s son to remain with the company. But for the owner, that was a dealbreaker.
1 tag
Opportunity Cost
The cost of forgoing one opportunity in favor of another. A means of describing the tradeoff between options.
Usage: For the student, the opportunity cost associated with going to the movies was the homework that would not get done that evening.
1 tag
Digital Native
A person who grew up with digital technology.
Usage: Students born in the 1990s are considered digital natives, since they never knew a time without cellular telephones.
1 tag
Elevator Speech
A short speech or pitch designed to capture someone’s attention just enough to get him or her to agree to meet you again. The name comes from the duration of a short elevator ride—maybe thirty seconds.
Usage: All the attendees at the networking event were giving their elevator speech.
1 tag
Front Line
Employees who work directly with customers.
Usage: The sales clerks are the front line staff in a retail store.
1 tag
Best Practices
Techniques, methods, incentives, policies, behaviors, and systems that perform a particular function well.
Usage: According to best practices research, competitive intelligence is a continuous process that continues for the life of the product.
1 tag
Collateral
The assets that a borrower pledges to a lender when taking out a loan.
Usage: If the borrower does not repay the loan, then the collateral becomes the property of the lender.
1 tag
GIGO
Garbage In, Garbage Out. Pronounced gee-go. The concept that if poor data goes into a process, then poor information is a result. A play on the abbreviation of depreciation methods LIFO and FIFO.
Usage: The analyst ignored the black market when putting together the economic analysis. The results were GIGO.
1 tag
Four 9's
.9999 or 99.99% Describes a level of performance for a technical system that is available for use 99.99% of the time.
Usage: Engineers designed the system to four nines.
1 tag
Seven Figures
A number in the low millions or x,xxx,xxx.
Usage: The company CEO was reported to have a seven figure salary.
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IFRS
International Financial Reporting Standards. Pronounced eye-fers. Issued by the IASB.
Usage: Many countries, including those in the European Union, require companies to use IFRS.
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Par Value
The stated or face value of a stock or bond.
Usage: The market value and par value of stock are usually different.
1 tag
Dividend
A payment to stockholders that represents a share of the profits.
Usage: Growth companies frequently do not pay dividends; instead they invest the money in future growth opportunities.
1 tag
Matures
Becomes due; refers to a note or other debt instrument.
Usage: When a note payable matures, the company must pay out the principal payment due.
1 tag
Interface
The point of interaction between two computer systems and, more generally, between machines and between people.
Usage: The seasoned employee was asked to serve as the interface between sales and engineering.
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Fudge Factor
An undefined, possibly intangible, element in an equation, included to ensure the calculation makes sense in the real world.
Usage: The analyst used a fudge factor to make sure his arithmetic answer was consistent with the seasoned executive’s experience.
Accretive
Today’s column at TheStreet.com got picked up by Fidelity.com! http://bit.ly/HuIETY
1 tag
Application
The actual way that something is used. Frequently refers to computer programs.
Usage: It’s not the equipment that matters as much as the applications for using the equipment.
1 tag
Hidden Agenda
The unspoken purpose or objective.
Usage: One of the goals in a negotiation is to understand the hidden agendas.
1 tag
Coopetition
The relationship when rivals must work together. A combination of “cooperation” and “competition.”
Usage: There is coopetition between large telecommunications companies when they work together in response to an earthquake.
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Six Figures
A number in the hundreds of thousands or xxx,xxx.
Usage: The concert promoters implied that the stadium event took in six figures.
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SOX compliance
Adhering to or complying with the rules and requirements of the Sarbanes-Oxley Act (SOX).
Usage: SOX compliance was supposed to increase confidence in the data found in annual reports of companies traded on the stock exchanges.
Penn BioTech Group
Getting ready for tonight’s presentation at the University of Pennsylvania.
1 tag
Standard Cost
The amount a product or service is expected to cost to produce.
Usage: Standard costs are frequently used in budgeting.
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Revenue Center
A logical subdivision of a company that is responsible only for sales. Opposite of a cost center.
Usage: The telemarketing division is a revenue center.
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1 tag
Cost Center
A logical subdivision of the company that is responsible for controlling only costs. Opposite of a revenue center.
Usage: The production department is a cost center.
1 tag
Technical Assessment
Evaluation of technologies and equipment to determine whether the hardware and software will serve the defined needs.
Usage: The technical assessment should take market needs into consideration to make sure the technology will do what customers want it to do.