Sick pay refers to payments made to an employee to replace wages during periods of absence due to illness or personal injury. It includes payments from various sources such as employer, welfare funds, and state sickness or disability funds.
A sight draft, also known as a documentary draft, is a type of financial instrument or bill of exchange that is payable upon presentation, typically used in international trade to facilitate the payment for goods and services.
A signature guarantee is a written confirmation from a financial institution such as a bank or brokerage firm that a customer's signature is valid. It ensures the legitimacy of transactions involving the transfer of securities.
An influence by one company on the financial and operating policy decisions of another company (including dividend policy) in which it has an interest. The influence does not need to amount to control.
An upfront payment made to employees as part of the cost of obtaining their services. Often used in competitive job markets to attract top talent.
A silent partner, also known as a limited partner, is an investor who contributes capital to a business but does not involve themselves in the daily management or operations of the company. Unlike general partners, silent partners have limited liability, meaning they can only lose the amount of their investment.
Silicon Valley is a region in California known for its high concentration of tech companies and innovation in high-tech research and development. Named after silicon, a primary component used in semiconductor computer chips, this area has become a global hub for technology startups and established technology giants.
A monetary system where the value of a country's currency is directly linked to a specific amount of silver.
Simple interest is a quick and easy method for calculating the interest charge on a loan or the interest earned on an investment, based on the principal amount, interest rate, and the time period involved.
A SIMPLE IRA (Savings Incentive Match Plan for Employees Individual Retirement Account) is a form of salary reduction plan that qualifying small employers may offer to their employees, providing an efficient way to save for retirement.
Simple Linear Regression: Method for Analyzing the Relationship Between One Independent Variable and One Dependent Variable
The simple rate of return measures the profitability of an investment by dividing the total earnings (income and capital gains) by the original amount invested. It is a straightforward way to assess the financial performance of an investment without considering compounding effects.
A simple trust is a legal arrangement under which the trust must distribute all of its income to beneficiaries annually. It is subject to specific tax regulations and benefits from a $300 standard deduction.
Simple yield is the return equal to the nominal dollar interest divided by the market value (price) of a bond. It is an approximate, simplified rate reflecting the cost to the debtor and the return to the holder of a debt instrument.
The Simplex Method, or Simplex Algorithm, is a method used for solving linear programming problems by iteratively testing feasible solutions until reaching the optimal solution. Designed for computational efficiency, it is particularly well-suited for computer applications.
A SEP-IRA is a retirement plan specifically designed for self-employed individuals and small business owners, allowing for tax-deferred growth of retirement savings.
A Simplified Employee Pension (SEP) Plan is a retirement plan specifically designed for small businesses and self-employed individuals, allowing them to contribute toward retirement savings for themselves and their employees.
Simplified financial statements provide a streamlined version of annual accounts, making financial information accessible to readers who may not possess extensive financial knowledge.
A financial modeling technique that considers the likely outcomes of different hypothetical circumstances. Uncertainty may be modeled by the use of random numbers, as in a *Monte Carlo simulation* or worst cases by the use of *stress testing*.
A sin tax is a specific type of tax imposed on goods that are considered harmful to individuals and society, such as alcohol, tobacco, and gambling. This tax aims to reduce consumption of these products, improve public health, and generate revenue for the government.
Single Life Distributions are monthly annuity payments made to a retired employee for life from a retirement plan. These distributions are taxed when received.
The concept of a single integrated market that underlies trading in the European Union, introduced by the Single European Act of 1986. It targets seamless EU-wide trade by eliminating barriers and harmonizing standards.
Single Premium Life Insurance (SPLI) is a type of life insurance coverage where the policyholder makes a one-time lump sum payment to fully fund the policy. After this initial payment, no further premiums are required for maintaining the coverage.
A Single Property Ownership Trust (SPOT) allows investors to own shares in a specific property, entitling them to a direct share of the property's income and capital. This forms part of a securitization process and is similar to a Property Investment Certificate (PINC).
A Single Property Ownership Trust (SPOT) is a legal fiduciary structure where a single real estate property is held within a trust, managed on behalf of the beneficiaries. This arrangement aims to maximize property value, simplify management, and offer estate planning benefits.
A political philosophy advocating for the confiscation via taxation of the economic rent from land ownership as the sole revenue source for the government, aiming to address poverty by focusing on the unimproved value of land.
The term 'single taxpayer' refers to an individual who is not married on the last day of the tax year. This designation affects the rate schedules and tax tables used to calculate their tax liabilities.
A single-capacity system in accounting refers to an accounting structure in which each activity or cost element is identified as serving only one purpose—either serving as a cost center or a revenue generator. Unlike the dual-capacity system, the single-capacity system does not recognize dual roles for cost centers or activities.
A bookkeeping system that records only one aspect of each transaction, either a debit or a credit. Unlike double-entry bookkeeping, it does not balance. Single-entry bookkeeping is simpler and often used by small businesses.
Single-entry bookkeeping is an accounting system that records each transaction only once, without balancing debits and credits.
Single-family housing is a type of residential structure designed to include one dwelling unit. Adjacent units may share walls and other structural components but generally have separate access to the outside, and do not share plumbing and heating equipment. Single-family housing includes detached housing units, townhouses, and zero-lot-line homes.
A limited reserve set aside systematically by an issuer over time to repay debt or to replace an asset in the future.
A form of protest involving workers stopping work but remaining at their place of employment, typically to occupy and take control of the workplace to prevent the use of strikebreakers.
A site refers to a plot of land that is prepared for or underlying a structure or development; essentially, it is the location of a property. The site is a key component in real estate and development projects, impacting various factors from zoning laws to property value.
An evaluation of a site, prior to acquisition of title to the property, for the existence of hazardous waste. This assessment is crucial under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA), as amended by the Superfund Amendments and Reauthorization Act of 1986 (SARA).
Situational Management is a management method whereby the current state of the organization determines which operational procedures will be implemented to achieve desired outcomes. It emphasizes a very adaptive management style.
The place in which an asset is held to be located, determining the applicable laws for rights and liabilities associated with the asset.
The SIX Swiss Exchange is the main stock exchange in Switzerland, created as SWX Swiss Exchange in 1995. It was established by the unification of exchanges in Zurich, Geneva, and Basle into a single fully automated trading system.
The SIX Swiss Exchange is Switzerland's primary stock exchange, facilitating trade in a variety of securities including stocks, bonds, and derivatives. It is renowned for its efficiency and innovative trading technology.
Skill obsolescence refers to the state where certain trade, occupation, or skill becomes outdated or redundant because of technological advancements or automation.
A skill-intensive occupation or job requires a highly skilled workforce capable of performing complex tasks with a high degree of proficiency. Examples of skill-intensive jobs include machinists, computer programmers, tool and die makers, and culinary chefs.
Skimming can refer to either an illegal practice of failing to account for some sales or a marketing strategy involving high initial pricing for new products.
Skype is a popular Internet communication service that allows users to make voice and video calls, send instant messages, and share files over the Internet. It is widely used for personal and business communications.
The term 'slack' refers to periods of reduced activity or efficiency within a business, manufacturing, or operations context. These periods are generally characterized by a slowdown in demand, productivity, or throughput.
Slamming is the illegal practice of changing a customer's long distance telephone service provider without the customer's permission.
Slander involves making false spoken statements which are damaging to another person's reputation. It is a form of defamation that is communicated orally.
A stock in which there is little investor interest but has significant potential to gain in price once its attractions are recognized. Sleepers are most easily recognized in retrospect, after they have already moved up in price.
A potential target that has not yet been approached by an acquirer. Such a company usually has particularly attractive features, such as a large amount of cash or under-valued real estate or other assets.
A sleeping partner is an individual who invests capital in a partnership but does not participate in daily business operations. This person shares in the profits and bears the legal rights and obligations of ownership as specified in the partnership agreement.
SLM Corporation, commonly known as Sallie Mae, is a publicly traded corporation that guarantees student loans and is actively traded on the secondary market. It purchases student loans from originating financial institutions and provides financing to state student loan agencies.
SLM Corporation, commonly known as Sallie Mae, is a publicly traded U.S. corporation that provides student loans and other education services.
A deliberate reduction of output by employees to bring economic pressure upon an employer without the costs of initiating a strike.
A slump denotes a noticeable drop in economic or productive activity. While it indicates a downturn, it is generally less severe than a recession or a depression.
A slush fund is a financial stash reserved for illicit purposes, such as bribery or unethical activities, often without an accurate accounting record.
According to the U.S. Department of Commerce, a small business is defined as a business employing less than 100 people. Small businesses play a disproportionately important role in innovation as well as in economic and employment growth in the United States.
The Small Business Administration (SBA) is a United States government agency that provides support to entrepreneurs and small businesses. The SBA's mission is to maintain and strengthen the nation's economy by enabling the establishment and viability of small businesses and by assisting in the economic recovery of communities after disasters.
The Small Business Administration (SBA) is a federal government agency based in Washington, D.C., dedicated to supporting and encouraging small businesses through various programs, including low-interest loans to qualified businesspersons.
Ordinary deduction treatment for certain individuals and partnerships on the sales of stock or in cases of bankruptcy, allowing for ordinary loss treatment up to specific limits.
A Small Business Investment Company (SBIC) operates under the Small Business Investment Act of 1958 and provides financial assistance to small businesses.
A small claims court is a court of limited jurisdiction where a claim for a relatively small amount can be settled on an informal basis.
The Small Claims Division is a specific section of the Tax Court where taxpayers can resolve disputes involving amounts not exceeding $10,000 in a less formal and expedient manner compared to standard procedures.
Under UK company law, a small company is a private company satisfying certain criteria related to net worth, turnover, and the number of employees.
The Small Firms Loan Guarantee (SFLG) was a government-backed scheme in the UK designed to help small businesses secure financing when they could not offer sufficient collateral. It has been succeeded by the Enterprise Finance Guarantee (EFG).
A small group is a classification under the Companies Act where specific size criteria meet and allow exemptions for certain financial reporting requirements.
An individual investor who buys small amounts of stock or bonds, often in odd-lot quantities; also called a retail investor.
The term Small Office/Home Office (SOHO) is used to describe a work environment where individuals operate from home or a small office setting, leveraging technology such as faxes, scanners, and personal computers to compete with larger corporations.
SOHO stands for Small Office/Home Office, which refers to small-scale business setups that operate out of a residential or small commercial space. This term is primarily associated with entrepreneurial ventures, freelancers, and remote workers.
Small-cap stocks refer to the stocks of publicly traded companies with a market capitalization typically between $300 million and $2 billion. They are considered less well-established but often exhibit faster growth potential compared to mid-cap and large-cap stocks.
A plastic card embedded with a microprocessor that stores and updates information for purposes such as performing financial transactions and storing personal medical records.
A smartphone is a mobile phone that includes various features such as memory, computing, and connectivity. Smartphones are capable of functioning as personal digital assistants (PDAs), sending and receiving emails, and browsing the web. Software developers create applications (apps) which can be used online or offline to perform specific tasks. Popular smartphones include BlackBerry, iPhone, and those running on Android or Windows Phone operating systems.
SME stands for small or medium-sized enterprise. The term is widely used without a standard definition, varying based on net worth, turnover, profits, or number of employees.
An influential report focused on defining and guiding the role of audit committees, published under Sir Robert Smith in 2003 alongside the Higgs Report on non-executive directors, shaping subsequent revisions to the Corporate Governance Code.
The Smithsonian Agreement was a pivotal international accord signed in December 1971, which ended the fixed exchange rates established at the Bretton Woods Conference of 1944 and substituted a floating currency exchange rate.
A provision in the Extended Coverage Endorsement of an insurance policy that ensures coverage for smoke damage resulting from sudden, unusual, and faulty operation of on-premises cooking or heating units connected to the chimney by means of a vent.
The smokestack industry refers to heavy industry sectors, such as the steel and automotive industries, characterized by their extensive industrial facilities often featuring large smokestacks. These sectors are facing significant international competition.
The practice of breaking down a large financial transaction into multiple smaller ones to avoid regulatory reporting. Used often in money laundering.
Snail mail refers to traditional mail sent through postal services as opposed to electronic mail (email). This term is often used to highlight the slow nature of traditional mail in contrast to the immediacy of electronic communication.
Snowballing in business refers to a situation in which business activity rapidly increases and builds momentum, often leading to exponential growth.
Social accounting issues encompass the various impacts an organization has on society, internally and externally, through initiatives such as charitable donations, education sponsorships, product safety, community involvement, environmental conservation, and the employment of disadvantaged groups.
A comprehensive evaluation of the impact that an organization has on society, including components like environmental audits as part of broader social responsibility reporting.
A tax-exempt social club is organized for pleasure, recreation, and other nonprofitable purposes where substantially all activities are for such purposes. None of the net earnings benefit any private shareholders.
Social lending, also known as peer-to-peer (P2P) lending, is a method of debt financing that enables individuals to borrow and lend money without the use of an official financial institution as an intermediary.
Social networks and networking sites are online services, platforms, or sites that facilitate discussion groups or personalized communities where users with common interests and activities can socialize. Key features include customizable profiles, adding friends, sharing multimedia, and built-in communication tools.
Social overhead capital refers to the investment in infrastructure and services like education, healthcare, and transportation, whose productivity cannot be directly measured but play a crucial role in overall economic growth and societal well-being.
Social responsibility involves ethical and societally moral behavior. Socially responsible conduct supports acceptable societal standards and laws.
Social Responsibility Reporting (also known as Corporate Social Reporting) refers to the practice of communicating a business's initiatives and achievements in social accounting issues, often included within the annual accounts or in a separate report.
The Social Security Act, a cornerstone of the federal retirement plan enacted by Congress in 1935, was designed to create a system where the current working generation finances the retirement of older workers. This program was a response to the socioeconomic challenges posed by the Great Depression.
The requirement for employers to report annually to the U.S. Treasury Department the names of employees who terminated employment with vested benefits, and the associated amount of these benefits. This information is also shared with the Social Security Administration (SSA) and made available to the employees upon request.
Social Security credits determine a person's eligibility for Social Security programs. Credits are earned by working in a covered job and by paying Social Security taxes.
Social Security Disability Income Insurance (SSDI) is a federal insurance program funded by payroll taxes that provides financial benefits to eligible workers who are unable to work due to a long-term disability expected to last at least one year or result in death.
An identifying number for individuals that is furnished by the Social Security Administration. Social Security numbers are required for all individual taxpayers and dependents. It is the counterpart of the Employer Identification Number (EIN) that is used for non-individual entities such as businesses, trusts, and partnerships.
The Social Security tax, specifically the Old-Age, Survivors, and Disability Insurance (OASDI) portion, is a crucial federal tax under the Federal Insurance Contributions Act (FICA) that applies to compensation and self-employment earnings.
Socialism is an economic system characterized by government ownership or control over the major critical industries, while allowing collective ownership and some private ownership in less critical sectors like agriculture and services.
Investing in securities of companies that align with particular social priorities, often excluding entities involved in controversial industries or practices.
Socially responsible investment (SRI) involves choosing investments based on ethical, social, and governance criteria, aligning financial goals with personal values and societal norms.
SARL, or 'Società a Responsabilità Limitata', is the Italian designation for a firm with limited liability. It is a common type of business entity in Italy that offers liability protection to its owners while allowing a flexible organizational structure.
The Society of Actuaries (SOA) is an organization dedicated to the advancement and professional development of actuaries, providing invaluable resources, designations like the FSA (Fellow, Society of Actuaries), and fostering collaborations with members, volunteers, and other actuarial organizations.
A soft currency is one that is not freely convertible and typically faces restrictions on exchange, often due to economic instability or lack of demand in the international market.
Soft dollars refer to a type of payment method used primarily in the financial industry, particularly in the context of brokerage and investment management services. This non-cash compensation allows investors to pay for services using commissions generated from trading activities.
Soft goods refer to merchandise that is soft to the touch, including clothing and other textile goods. In the merchandising industry, they are considered nondurable goods.
