What is the Specific-Shares Method? The specific-shares method is a trading method used by investors for tax purposes and to reduce tax liability for a particular year to the barest minimum. Through this method, investors maximize their capital gains or capital losses when selling some parts of the shares of a company or fund. The specific-shares me...

What is a CAPE Ratio? The CAPE ratio is defined as a price earnings ratio that measures the average of adjusted earnings over a period of 10 years. It is a price valuation method that determines the real earnings per share (EPS) over a period of 10 years which is adjusted for inflation. The CAPE ratio is an acronym for the cyclically adjusted price-...

What is Balanced Trade? In a balanced trade, a country does not account for trade surplus or trade deficits. This model mandates countries to equal their imports with exports. This ensures that a zero balance of trade is achieved which could also include the introduction of other means. Balanced trade is provided as a relative option to free trade. ...

What is a Private Investment Company? Private investment companies are not covered under the section 3C1 of the 1940 Investment Company Act. They are not required to register with Securities Exchange Commission (SEC) but their investors and investments in stocks or bonds are limited.  A private Investment company is made up of a minimum of 100 inves...

What is an Active Bond? An active bond refers to either a corporate bond or other fixed-income security which is often traded in largely on the New York Stock Exchange (NYSE). This isn't to be mistaken for actively managed bond investment techniques. How Does an Active Bond Work? Active bond crowds trade active bonds and they are traders who engage ...

How are Written Communications Organized? Business writing is done with the basic objective to communicate ideas that are integral to the success of the business. Each message should have components that enhance the understanding of the audience. Ask questions like: who, what, when, where, how, and at times, why. A approach to organizing written com...

What is the Endangered Species Act of 1973? The Endangered Species Act (ESA) protects animals and plants that the Secretary of Interior or marine species that the Secretary of Commerce lists as threatened or endangered. The Fish and Wildlife Services (FWS) and National Marine Fisheries Services administer (NMFSA) administer the ESA. The determinatio...

What is a Chain of Title? Chain of Title refers to a document or a record which proves legal ownership of an asset or a property. These papers are mandatory for the establishment of ownership of a title, an asset, or a property; thus, they tend to be well preserved and maintained in centralized systems and registries. The term chain of title is deri...

What is the Doctrine Of Utmost Good Faith? The doctrine of the utmost good faith, known in latin as "uberrimae fides", is a legal doctrine stating that parties in a contract must act honestly without withholding information or misleading each other. This doctrine is the minimum standard that parties must adhere to in a contractual agreement and it i...

How does Environmental Impact Affect Marketing? Environmental impact is simply the effect of activities on the natural environment. Because nearly every business activity has an impact (some positive - but mostly negative), it is important to assess or measure the impact of those activities.  The information from these assessments or measurement wil...