What is a Chooser Option? A chooser option in finance refers to a contract that offers the holder a chance to decide whether to take a put or call option. This is usually done ahead of the expiration date. A call option refers to a contract that allows an investor to buy stocks at a price already pre-determined. This buyer usually gets profits when ...

What is Just In Time (JIT) Inventory System? Just-in-time inventory system (JIT) is an operations management strategy of ordering raw materials/goods, and receiving those raw materials/goods only as they are needed to keep the production process running to meet actual customer demand. That is, no excess stock is ordered, and it should arrive just in...

What is the Hang Seng Index? The Hang Seng Index, abbreviated as HSI, is an index of the largest companies traded on the Hong Kong Exchange. The breakdown of the index is weighted based upon the market capitalization of the underlying companies. Each underlying company is sub-categorized into commerce and industry, utilities, finance, and properties...

What is a Personal Exemption? A personal exemption refers to the amount of money that a single taxpayer can claim as a tax deduction, this deduction is claimed on personal income and federal income tax. The amount an individual can deduct under personal exemption is based on the tax return or taxable income of the individual. As at 2017, the persona...

How Does the Rule of Law relate to Economic Growth? Economic growth depends on many factors. Key among those factors is adherence to the rule of law and protection of property rights and contractual rights by a country’s government so that markets can work effectively and efficiently.  Laws must be clear, public, fair, enforced, and equally applicab...

What is a Writ of Attachment? In a legal case, a writ of attachment is a court order that empowers a plaintiff to attach or seize the assets of a defendant pending the time the legal case is finalized. A writ of attachment is a prejudgment process, it is an order issued before the final judgement is reached. The asset or property seized is kept unde...

What is a Credit Reporting Agency? Credit reporting/rating agencies are independent bodies that analyze the credit quality of public and private issuers. With so many debt issuers, these agencies were created with the aim of issuing ratings on the risk of securities remaining unpaid. These companies consider fixed income. How Does a Credit Reporting...

What is Mercantalism? Mercantilism is an economic theory that holds that a nation's wealth can increase when the government regulates the nation's wealth by maximizing exports and reducing imports. Mercantilism was developed in the 16th and 18th centuries. This economic theory maintains that the government should get more involved in international t...

What is Quality Control? Quality control refers to a set of procedures through which businesses review their manufactured products to ensure they meet standard quality requirements. There are certain standards or qualities that products must meet. Failure of the products to meet the stipulated qualities means they must be junked, reworked, or improv...

What is the Over-The-Counter Market? An OTC market is a market where two parties directly trade financial instruments like stocks, commodities, and currencies without any supervision. Small companies often use OTC markets to trade because they are unable to make it to the exchange listings. OTC trading does not need a physical location like at the L...