Capital reduction, also known as the reduction of capital, is a restructuring process whereby a company reduces its shareholder equity through activities such as repurchasing shares or decreasing share capital to distribute assets to shareholders or to eliminate losses.
Parcels sent via the U.S. Postal Service that are insured for loss or possible damage by paying an insurance fee. A claim is then filed if the package fails to arrive at its destination.
Inventory shortage, also known as shrinkage, refers to the unexplained difference between the physical count of inventory and the amount recorded in accounting records. This discrepancy can be due to various factors, ranging from normal evaporation of a liquid to theft.
Methods used to reduce the amount of inherent risk. The four basic risk control techniques are Risk Avoidance, Risk-Control Transfer, Loss Prevention, and Loss Reduction.
Self-insurance refers to the process of protecting against loss by setting aside one's own money rather than purchasing insurance from a third party. This can be systematically done by establishing a reserve fund.
A short squeeze occurs when many traders with short positions are forced to buy stocks or commodities to cover their positions and prevent losses, leading to a sudden surge in buying and even higher prices.
