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 Junior Capital Pool? A junior capital pool (JCP) is a corporate structure that allows a company to issue its shares or stock options to the public before going into an actual business. JCP also refers to a company that engages in such an act. When a company goes public (issues stock options) before having an operational business structure,...

What is an Accredited Personal Financial Planning Specialist? An accredited Personal Financial Planning Specialist (PFS) refers to a qualified Certified Public Accountant who receives this certification by the American Institute of Certified Public Accountants (AICPA).  The main work of a Financial Personal Specialist is to assess clients financial ...

What is a Paradigm Shift? A paradigm shift refers to a major change in understanding and in how certain processes are achieved. In business, a paradigm shift often occurs when new technology is introduced which radically changes a goods production process. ...

What is Impact Investing? Impact investing refers to a form of investment that is tailored towards generating significant environmental and social impact. Companies and organizations that are socially responsible are scouted by investors or individuals that want to make impact investing. The main aim of impact investing is to make a significant and ...

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...