What Is Consumer Liability? Consumer liability places accountability on consumers to prevent negligence in their consumption activities. Policies that determine the level of consumer liability are written into companies’ contracts and are a way of protecting them from any liability as a result of potential consumer negligence. Key Takeaways Consumer liabilities are contractual obligations that…
One of the first things you hear when you’re building your investment portfolio is that you should spread your wealth across different types of investments. That means you should diversify your holdings. You can build your portfolio on your own or with the help of an advisor who may help you choose a combination of…
What Is Pull-Through Production? Pull-through production is a just-in-time (JIT) manufacturing strategy that sends an item into the production process at the point when a company receives an order for it. Pull-through production utilizes a pull system, a method for controlling the flow of resources through a system. Resources are pulled into the production pipeline only…
What Was Salomon Brothers? Salomon Brothers was an American investment bank. It was founded in 1910 and was one of the largest investment banks on Wall Street, providing a range of financial services. It was best-known for its fixed-income trading department. The company went through a series of acquisitions and mergers between 1981 and 1997….
When Barack Obama took Presidential office on Jan. 20, 2009, the Dow Jones Industrial Average (DJIA) continued its credit crisis slump and fell to 7,949.09, the lowest inaugural performance (as measured by percentage drop) for the Dow since its creation in 1896. The S&P 500 and the Nasdaq took similar hits on inauguration day, dropping…
What Is a White Squire? A white squire is an investor or friendly company that buys a stake in a target company to prevent a hostile takeover. This is similar to a white knight defense, except the target firm does not have to give up its independence as it does with the white knight, because…
What Was the Asian Financial Crisis? The Asian financial crisis, also called the “Asian Contagion,” was a sequence of currency devaluations and other events that began in July 1997 and spread across Asia. The crisis started in Thailand when the government ended the local currency’s de facto peg to the U.S. dollar after depleting much…
What Is an Investment Fund An investment fund is a supply of capital belonging to numerous investors used to collectively purchase securities while each investor retains ownership and control of his own shares. An investment fund provides a broader selection of investment opportunities, greater management expertise, and lower investment fees than investors might be able…
What Is Foreign Portfolio Investment (FPI)? Foreign portfolio investment (FPI) consists of securities and other financial assets held by investors in another country. It does not provide the investor with direct ownership of a company’s assets and is relatively liquid depending on the volatility of the market. Along with foreign direct investment (FDI), FPI is…