Found 39 Articles for Trading

Accidental Death Benefits are riders added to standard life insurance policies. It pays an additional sum to the beneficiaries in case of accidental death of the insured. There are variations in definitions of accidental death and hence one must be clear about what constitutes an accidental death before opting for these policies.Accidental death benefits are additional policies that pay the beneficiary lump-sum or differential payments that may extend up to a year depending on the insurer. These benefits cover the employees when a group insurance policy has been opted by the employer.Accidental death benefits are more relevant to workers who ... Read More

Accidental Death and dismemberment is an insurance policy that pays the beneficiary on the death of the insured. It also pays for dismemberment related to speech, hearing, and sight. AD&D is a rider that is associated with general insurance policies to cover additional sum assured in case of accidental death of the insured.The beneficiaries usually get a lump sum amount on the insured's death while in the case of injury, monthly amounts may be allocated. The definitions of accidents are different for different insurers but in most common cases, car crashes, drowning, choking, slippery and machinery accidents, etc.AD&D – What ... Read More

Risk Retention is the process where an individual or a company accepts the financial risks and does not act on them before they actually occur. These risks may be too small for which paying attention before could be too early. Some other risks are so big that taking any action on them is impossible due to the costs. These all fall under the risk retention philosophy.Risk-retention helps companies avoid negligible risks while paying more interest to operations. It is a valuable strategy applicable to budgeting and prioritization. Risk acceptance is a part of a risk management policy in which small ... Read More

Accepted Quality Level (AQL) is a quality control process where a minimum threshold is set which has to be achieved by a batch of manufactured products. If there are more defects than AQL, the batch is completely rejected. AQL sets the standards of manufacturing and quality of a product and it helps companies avoid too many defects in the production of a good.The quality of goods is usually checked via sampling. A set of standards is set for the batch of products and it may vary from industry to industry. If the batch of products meets the benchmark, they are ... Read More

In Accelerated Depreciation, a capital asset loses its face value faster in an earlier year in comparison to later years. It is a process where the net value of depreciation in beginning is the highest while it gets reduced increasingly as the asset ages. This is not applicable to traditional methods such as the Straight Line Method. In the straight-line method, the rate of depreciation remains the same over the entire life of the asset.Due to accelerated depreciation, a company reports less profit as it pays more for the asset in earlier years. This profit goes up gradually as the ... Read More

Essentially a Property Market tool, Absorption Rate refers to the rate at which homes are sold in the market. It is given by homes sold divided by the total number of houses available in the market.Absorption cost shows the demand for houses in the market apart from showing whether there is an ample number of homes in a given market over a specific period of time. The reverse of absorption rate shows the required and probable time it would take to get the houses sold in the market completely. In accounting, businesses use the absorption rate to find the overhead ... Read More

Absorption cost is the total cost of manufacturing a product. It includes all types of costs associated right from the beginning and till the end of manufacturing a product. Labor, insurance, and costs of raw materials are included while calculating absorption costs. Companies also include overhead costs to calculate the final absorption cost.There are differences between absorption and variable costs. Absorption cost considers all costs, such as overhead costs and costs of raw materials even if all the products are not sold at the end of the accounting period. Absorption costing being applied to accounting, inventory in the balance sheet ... Read More

Absolute Return is simply the return generated by an investment vehicle. For example, the returns generated by bonds are their absolute return. Absolute Return is not compared to any other measure of the market or benchmarks. It is a single entity and is related to the performance of the investments in the market.Absolute Return Vs Relative ReturnAbsolute Return differs from Relative Return because, while calculating Relative Return, we have to take in consideration the returns of other investment funds that are active for a certain period of time.Relative return compares the performance of the investment against market value, category of ... Read More

Abnormal return refers to abnormally high or low returns of investment. In the case of an abnormal return, the performance of the investment or funds diverges from the anticipated and usual rate of return. The effects of abnormal return are short-term and they may be due to abnormal fundamentals or fraudulent behavior of the firm holding the funds. The estimated Rate of Return (RoR) which is risk-adjusted remains completely missing in case of abnormal returns.Abnormal return is different from Alpha and excessive returns which are due to the good performance of the investments managers. Cumulative Abnormal Returns (CAR) are a ... Read More

Ability to pay is a philosophy that asks individuals to pay tax according to their ability. This means that rich people should pay more in taxes than a poorer one. The ability to pay is based on the concept that since the value of one dollar is more for poorer individuals, they should pay less than the rich.The ability to pay encourages authorities to collect and levy more taxes to the rich as they are in a better position to pay more taxes. At the same time, since poorer people are unable to pay the same amount due to various ... Read More