Survivorship Bias Risk Definition

What is the risk of survival bias? The risk of survival bias is the possibility that an investor will make the wrong investment decision based on published investment fund performance data that reflects only performing funds rather than all funds. Key points to remember Risk of survival bias is the risk that reported returns for investment funds are overly optimistic …

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Growth Industry Definition

What is a growth industry? A growth industry is the sector of an economy that experiences an above-average growth rate relative to other sectors. Growth industries are often new or pioneering industries that did not exist in the past. Their growth is the result of demand for new products or services offered by companies in the field. An example of …

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Roku (ROKU) Makes Highs on Bullish JPMorgan Initiation

Roku, Inc. (YEAR) shares rose more than 7% during Tuesday’s session after JPMorgan hedged the stock at Overweight with a $475 target price. Key points to remember Shares of Roku rose sharply after JPMorgan hedged the stock at Overweight with a price target of $475, a 16.3% premium to Friday’s close. Analyst Cory Carpenter believes that as TV advertising budgets …

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Material Weakness Definition

What is material weakness? A material weakness occurs when one or more of the internal controls— the activities, rules and processes designed to prevent material misstatements in the financial statements and improve the efficiency of operations — are ineffective. If a deficiency in internal control is a material weakness, it could result in a material misstatement of a company’s balance …

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Rate Anticipation Swap Definition

What is a rate anticipation swap? A rate anticipation swap is a obligation trading strategy in which the trader trades the components of his bond portfolio in anticipation interest rate movements. Key points to remember Interest rate swaps consist of exchanging bonds in order to maximize or minimize their sensitivity to future changes in interest rates. The interest rate anticipation …

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How Amgen Makes Billions On Just A Few Drugs

As unpleasant as chemotherapy is, infections can make it even worse. As the “old saying” goes, if you can reduce the risk of sepsis in cancer patients, the world will be heading your way. Amgen Inc. (AMGN), an American multinational biopharmaceutical company, has achieved precisely this goal and extended hundreds of thousands of lives in the process. Founded in 1980 …

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Real Economic Growth Rate Definition

What is the real economic growth rate? The real economic growth rate, or real GDP growth rate, measures economic growthas expressed by Gross Domestic Product (GDP), period over period, adjusted for inflation or deflation. In other words, it reveals changes in the value of all goods and services produced by an economy – a country’s economic output – while taking …

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Socionomics Definition

What is socionomy? Socionomy is the study of social mood and its influence on social attitudes and actions. Specifically, he seeks to understand how social mood regulates the overall tenor and character of social behavior in areas such as politics, pop culture, financial markets, and economics. Socionomic theory proposes that leaders and their policies are virtually powerless to change social …

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Ordinary Loss Definition

What is an ordinary loss? An ordinary loss is a loss realized by a taxpayer when expenses exceed income in normal business operations. Ordinary losses are losses incurred by a taxpayer that are not capital losses. An ordinary loss is fully deductible to offset income, thereby reducing the tax owed by a taxpayer. Understanding Ordinary Loss Ordinary losses can arise …

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