The savings rate represents the portion of income that is saved rather than spent. It is an important economic indicator that reflects the propensity of individuals or economies to save.
The savings ratio, also known as the savings rate, is a financial metric that measures the proportion of disposable income that individuals or households save rather than spend on consumption. This ratio is typically expressed as a percentage and reflects the preference balance between present and future consumption.
A proposition in 19th-century classical economics, asserting that supply creates its own demand, implying that whatever quantity is supplied will also be demanded. It is named after the 19th-century French economist J.B. Say.
Individuals who work for an employer while a strike condition exists. The term, used by union members, is applied to nonunion and union members who cross a union picket line to perform work for an employer.
Scalable fonts are designed to be rendered at any size while maintaining high quality. The characters are stored as vector graphics and can be printed or displayed at various sizes without losing definition.
Scalage refers to a percentage deduction granted in business dealings with goods that are likely to shrink, leak, or otherwise vary in the amount or weight originally stated.
Scale is a versatile term often employed across multiple fields such as economics, labor, and modeling. In economics, scale pertains to the level of production efficiency as the volume of production changes. In labor, it denotes standardized wage rates for specific job types, such as those determined by union agreements. In modeling, scale signifies the relationship between the dimensions of a representation and the actual object.
The Scale Effect refers to the cost advantages that a business obtains due to the size, output, or scale of its operation. Primarily, the cost per unit of output generally decreases with increasing scale as fixed costs are spread out over more units of output.
A scale order is an investment strategy where a specific quantity of shares is bought or sold incrementally at predefined price intervals to average the purchasing or selling price over time.
The concept of scale relationship involves comparing objects, values, or phenomena using pre-defined scales, as well as determining proportions between model dimensions and real dimensions.
A scalper is a speculator who enters into quasi-legal or illegal transactions to turn a quick and sometimes unreasonable profit by reselling items at a higher price.
Traders in financial markets who engage in high-frequency trading, dealing very frequently for small gains and may hold a position for only a few minutes.
A scanner is a device capable of reading (scanning) typed characters from paper (hard) copy and automatically transferring this information to a digital format or another medium.
Scarcity refers to the limited nature of a resource or commodity, while scarcity value is the portion of a commodity's value that is attributable to its limited availability. Scarcity value arises when a good's demand surpasses its available supply.
The basic economic principle that most resources, goods, and services are available in limited quantities, requiring allocation based on willingness to pay the price set by supply and demand in a market economy.
A scatter diagram, or scatter plot, is a graphical representation used to display observations of data points plotted on the x-axis and y-axis to visualize any potential relationship or correlation between two variables. It is often employed in various fields, including accounting, statistics, and data analysis.
A broadcast media plan that schedules advertising announcements to run during a variety of radio and/or television programs. This schedule provides an advertiser with a wider audience for the advertising dollar than sponsoring a single program would achieve.
A scenic easement is a type of encumbrance on the title to a property designed to preserve it in a more or less natural or undeveloped state.
The term 'schedule' can have several different meanings within the context of accounting, tax legislation, and planning. In the UK, it is used extensively in tax legislation and accounting practices.
Schedule C is a tax form used by individuals to report income and expenses from a business or self-employed activity.
Schedule K-1 is a tax form used to report to each partner or beneficiary his or her share of income, losses, capital gains, and other tax information passed through from a partnership or trust to the individual.
Scheduled production refers to the planning and timetabling of the production process for specific products, detailing when and how each production sequence is to occur.
Scheduling is the process of planning and deciding the timetable of events, including when and where certain activities will take place. It is a crucial aspect of time management and resource allocation across various fields such as project management, operations, transportation, and personal planning.
A Scheme of Arrangement is an agreement between a company and its members or creditors to restructure the business or debts, often used during financial difficulties or takeovers and requires court sanction.
A scholarship is a form of financial aid that is awarded to students to support their education. Scholarships are typically based on academic or extracurricular achievements and do not need to be repaid.
Scienter refers to prior knowledge of operative facts, frequently signifying guilty knowledge. In pleadings, the term indicates that the alleged crime or tort was committed intentionally or with awareness of its illegality. In the context of fraud, scienter denotes the knowledge that an individual was making false representations with the intent to deceive.
A news story published before one by a rival news organization, often containing exclusive content or significant information.
In the law of agency, the scope of authority refers to the acts authorized for the accomplishment of the goal of the agency, including the actual authorization conferred by the principal and actions that are implicitly or apparently delegated to the agent.
The term 'scope of employment' refers to acts done while performing one's job duties. It is used to determine an employer's liability for the acts of its employees.
A corporate strategy used to avoid a hostile takeover by disposing of valuable assets, often resulting in a significant decline in the company's value and earnings power.
SCORE, formerly known as the Service Corps of Retired Executives, is a volunteer organization founded in 1964 that provides free management advice to small business owners.
Scorekeeping is a crucial aspect of management accounting where the performance of managers and operators is monitored, recorded, and reported to relevant levels of management for evaluation and decision-making.
Scrap refers to the remaining residual value of an asset at the end of its useful life, which can sometimes be recovered for a minimal monetary return, often referred to as salvage value. Additionally, scrap can arise from waste materials during a production process.
Scrap value, also referred to as salvage value, is the estimated residual value of an asset at the end of its useful life. This is the amount the owner expects to obtain from the sale of the asset following its complete depreciation.
A screen, also known as a monitor in computer terminology, is an electronic visual display that presents textual, graphical, and video information to the user.
Scrip refers to a certificate, written document, or token that ultimately serves as evidence of ownership of stocks, shares, or bonds. It can also be issuance documentation when additional shares are provided to current shareholders, known as a scrip issue.
A scrip issue, also known as a bonus issue, capitalization issue, or free issue, involves the issuance of new shares to existing shareholders to reflect accumulated profits in the reserves of a company. This process converts company reserves into issued capital without requiring shareholders to pay for the new shares.
The action of moving through a computer file or webpage to bring different information into view, as if the screen is a scroll being unrolled at one end and rolled up at the other.
A scroll bar is a user interface element that allows users to navigate through the contents of a computer screen window. It can be found on the side (vertical scroll bar) or the bottom (horizontal scroll bar) of most windows.
In common law, a seal is an impression on wax or another substance capable of being impressed, used to attest to the execution of an instrument. The term 'seal' and the letters 'L.S.' (locus sigilli, 'place of the seal') are commonly used for the same purpose today.
The 'Seal of Approval' is a certification granted by organizations such as Good Housekeeping Institute or Underwriter's Laboratories. This certification indicates that a product has undergone rigorous testing and has met the specific standards set by the granting organization, assuring consumers of product quality, safety, and reliability.
A form of cost estimate presented to a potential customer in which the bid is kept confidential to ensure fair competition among bidders.
SEAQ, or Stock Exchange Automated Quotations System, is an electronic trading platform used for pricing and trading UK and international stocks. It facilitates seamless and transparent trading by providing continuous bid and offer prices.
A search engine is a software system designed to perform web searches, allowing users to search for information on the World Wide Web using keywords or phrases. The results typically include a list of web pages, images, videos, and other types of files relevant to the query.
A statistical procedure applied to time series data to eliminate the effect of seasonal variations, providing a more accurate representation of underlying trends and cyclical movements.
Seasonal unemployment refers to joblessness that is expected at certain times of the year due to predictable and recurring variations in demand for labor. It commonly impacts industries like tourism, agriculture, and retail.
Seasonality refers to the predictable changes or patterns in an economic or financial factor that occur at specific times of the year, which can impact business operations, financial markets, and economic planning.
A seasoned issue refers to securities that are typically from established companies, have gained a reputation for quality with the investing public, and enjoy a high level of liquidity in the secondary market.
A seasoned loan is a bond or mortgage on which several payments have been collected. These types of loans are considered lower risk and more marketable than newly issued loans.
**Seat** is a figurative term that refers to an individual's or firm's membership on a securities or commodities exchange. A seat grants the holder the right to trade on the floor of the exchange and to access various trading privileges. Traditionally, seats are bought and sold at prices determined by supply and demand within the marketplace. The ownership of a seat is often considered prestigious and can be highly valuable due to the privileges and opportunities it confers upon the holder.
The Electronic Data Gathering, Analysis, and Retrieval system (EDGAR) is a platform used by the U.S. Securities and Exchange Commission (SEC) to increase efficiency and accessibility in the collection, submission, and dissemination of financial reports from public companies and other entities.
A residence that is not one's principal residence. A taxpayer may deduct interest up to certain limits on two personal residences, provided certain occupancy requirements are met.
A subordinated lien created by a mortgage loan over the amount of a first mortgage, often used to reduce the amount of a cash downpayment or to raise cash in refinancing.
An arrangement in which the value-added tax (VAT) due on second-hand goods sold is calculated based on the trader's margin, rather than the total selling price.
A market for investors to buy and sell shares in new and developing companies. These markets provide companies with access to new sources of finance and are subject to fewer regulatory requirements compared to main markets.
A secondary auditor is an auditor assigned to audit the financial statements of a subsidiary company, who is not the same auditor as the one auditing the parent company's financials.
A secondary beneficiary is an individual or entity designated to receive assets or benefits if the primary beneficiary is unable or unwilling to do so. Often used in insurance policies, estate planning, and retirement accounts.
A secondary boycott refers to a union's effort to exert pressure on an employer by preventing the usage, purchase, or transportation of products, goods, or services related indirectly to a primary employer involved in a labor dispute.
Secondary data refers to information collected for a purpose other than the current research objective. This data is typically gathered by other entities such as government agencies, market research firms, or academic institutions.
A secondary distribution refers to the public sale of previously issued securities held by large investors, such as corporations, institutions, or affiliated persons, rather than a new issue where the seller is the issuing corporation.
Secondary financing refers to additional loans or mortgages taken out on a property that already has an existing or primary mortgage. This type of financing is often used to cover down payments, renovations, or other expenses.
A secondary market is a crucial component of the financial market where securities are traded among investors after being initially offered to the public on the primary market.
The secondary mortgage market is a market for buying and selling mortgages that have already been issued or originated, providing significant liquidity to the mortgage market.
A secondary offering, also known as a secondary distribution, is the sale of new or closely held shares of a company by investors, usually institutions, who are selling off their positions entirely or part of it.
Secondary storage devices are computer storage locations for data not currently being accessed. They provide readily accessible file retrieval and security against data loss.
A secret reserve or hidden reserve is an account or fund that is not disclosed to stakeholders, often used by companies to smooth earnings over time.
Section 1031 of the Internal Revenue Code addresses tax-free exchanges of certain properties, primarily real estate, provided specific conditions are met.
Section 1231 of the Internal Revenue Code deals with assets used in a trade or business, providing for capital gains treatment on gains and ordinary loss treatment on losses from such assets.
Section 167 of the Internal Revenue Code details the rules and methodology regarding depreciation deductions for assets used in a trade or business or held for the production of income.
A section of the Internal Revenue Code of 1986 (IRC) that allows the cost of capital improvements for qualifying personal property to be deducted in the year of acquisition rather than being recovered over time through depreciation.
A Section 401(k) Plan allows an employee to contribute pretax earnings to an individual account, invested in various financial instruments, accumulating tax-deferred until withdrawal.
A specific kind of nonprofit organization in the United States exempted from federal income tax under section 501(c)(3) of the Internal Revenue Code. These organizations must fulfill certain criteria related to purpose, earnings, lobbying, and political activities.
Section 8 Housing refers to privately-owned rental units that participate in the low-income rental assistance program created by the 1974 amendments to Section 8 of the 1937 Housing Act. Under this program, landlords receive rent subsidies on behalf of qualified low-income tenants, allowing these tenants to pay a limited proportion of their incomes towards rent.
A section of land, as defined in the Government Rectangular Survey, is one square mile. This system divides land into a grid where each township contains 36 sections, each being one square mile or 640 acres in area.
A sector refers to a distinct part of the economy, stock market, or specific division in computer storage, each sharing common characteristics.
A secular trust is a variation of an irrevocable trust primarily used in nonqualified deferred compensation plans for executives, offering greater security as its assets are not subject to the claims of creditors.
A secured bond is a type of bond backed by some form of collateral such as a mortgage or other lien. The specifics of the security are detailed in the bond agreement, known as an indenture. Unlike secured bonds, debentures (unsecured bonds) are not backed by collateral.
A secured creditor holds a financial interest, either through a fixed or floating charge, over the assets of a debtor, providing a level of security for the creditor's investment by granting the right to seize or sell these assets if the debtor defaults.
Debt obligation, including bonds, that is guaranteed by the pledge of assets or other collateral.
A secured liability is a debt against which the borrower has pledged sufficient assets as collateral to protect the lender in case of default.
A transaction based on a security agreement that concerns a security interest, whereby personal or real property is pledged as collateral for performance or for a debt.
Financial instruments that represent ownership or debt and provide the holder with a right to receive financial returns or an interest in the profits or assets of an enterprise.
The first law enacted by Congress to regulate the securities markets, approved May 26, 1933, as the Truth in Securities Act.
A securities analyst is an individual who performs investment research and examines the financial condition of companies and industries to provide investment recommendations.
Organized, national exchanges where securities, options, and commodities futures contracts are traded by members for their own accounts and for the accounts of customers.
The Securities and Exchange Commission (SEC) is a U.S. government agency that oversees the securities markets and protects investors by enforcing securities laws and regulations.
The Securities and Exchange Commission (SEC) is a federal agency empowered to regulate and supervise the selling of securities, prevent unfair practices on security exchanges and over-the-counter markets, and maintain a fair and orderly market for investors.
The SEC is a key regulatory body in the United States that enforces securities laws to protect investors and ensure fair and efficient markets.
The Securities Exchange Act of 1934 is a landmark piece of legislation that governs the securities markets in the United States. Enacted on June 6, 1934, this act was designed to regulate and oversee the secondary trading of securities (stocks, bonds, and debentures) to ensure fairness and transparency in financial markets. The act explicitly outlaws misrepresentation, fraud, manipulation, and other abusive practices related to the issuance and trading of securities. To enforce the provisions of both the Securities Act of 1933 and the Securities Exchange Act of 1934, the legislation established the Securities and Exchange Commission (SEC).
The Securities Investor Protection Corporation (SIPC) is a nonprofit corporation supported by its membership of securities brokers and dealers. It was developed to protect their customers and to promote confidence in the securities markets. In principle, SIPC provides certain amounts of insurance on cash and securities left on deposit in a brokerage account. This insures investors against the failure of the brokerage firm but not against a decline in the value of securities.
A securities loan involves the loaning of securities by one broker to another, typically to facilitate a short sale or, in a broader context, can refer to a loan collateralized by marketable securities.
Securities markets are venues where securities are bought and sold, encompassing both organized exchanges and over-the-counter (OTC) markets. These markets facilitate the flow of capital from investors to companies, enabling economic growth and liquidity.
Securitization is the process of turning assets into securities by packaging asset cash flows into tradable financial instruments. It involves an originator, a special purpose vehicle, and investors.
Security refers to various forms of assurances provided to lenders or measures taken in financial and e-commerce contexts to ensure the integrity, privacy, and authenticity of transactions or assets.
A security deposit is a nontaxable cash payment received by a landlord to be held during the term of a lease to offset damages incurred due to actions of a tenant.
A Security Interest represents a legal claim or right granted to a lender or secured party over the borrower's property (collateral) which secures the payment or performance of an obligation.
Evaluation of the credit and investment risk of a securities issue by commercial rating agencies.
Essential initial funding that enables the research and development required to develop a persuasive and accurate business plan before establishing a new company.
Seed money is the initial capital used to start a business, often provided by venture capitalists, and can take multiple forms including subordinated loans, convertible bonds, or preferred stock.
Segment margin is a profitability measure used to evaluate the financial performance of a business segment, such as a division, territory, or product line. It equals segmental revenue minus related product costs and traceable operating expenses attributable to that segment.
