What is the Fixed Amortization Method? The fixed amortization method is a method in which an account balance is amortized over a period of years and is equal to the life expectancy as required by the IRS. Through the fixed amortization method, a retiree can have early access to his retirement funds before turning 59 without attracting any penalty fr...

What is Weighted Average? In arithmetic or mathematical calculation, a weighted average refers to average results realized when each datum is multiplied by an established weight. The multiplication is done before the average of the data set is calculated. Although the weight is predetermined, all the components of the data have an equivalent proport...

How to Charge Someone with a Crime? The general process for initiating criminal charges against an accused is as follows: Arrest  Initial Appearance  Bringing Charges Arraignment  Trial Burden  Each step of the criminal process may vary slightly among jurisdictions.  Prosecution of a violation of criminal law is carried out in an Article III court (...

What is a Patent Troll? patent troll is a company or a person that buys patents from insolvent and financially unstable companies so that they can benefit by charging licensing fees on the patent infringers. The patent trolls often have no intention of selling or inventing the products after buying the patents, but they want to make money out of the...

What is a Swap? A swap refers to an exchange of a financial instrument between two parties. It is usually in the form of a derivative contract, and it takes place at a predetermined time as specified in the contract. Swap may be anything that ranges from cash flow, investment, liability, or payment for the other. However, in most cases, it involves ...

What is the Double Coincidence of Wants? In an economy without money, an exchange between two people would involve a double coincidence of wants, a situation in which two people each want some good or service that the other person can provide. For example, if an accountant wants a pair of shoes, this accountant must find someone who has a pair of sh...

What is the Dirks Test? The Dirks Test is a standard measure that establishes whether a wrongful insider trading has occurred in a company or whether a tippee is guilty of insider trading. It is a standard test that formulates the basic criteria for insider trading. The Dirks Test is used by the Securities and Exchange Commission (SEC) to determine ...

What is a Non-Accredited Investor? A non-accredited investor is an investor that fails to meet the net worth requirements that will qualify him as an accredited or sophisticated investor. As stipulated by the Securities and Exchange Commission (SEC), an investor that does not have $1 million or more as his net worth or does not have an income of mor...

What is an Ascending Channel? An ascending channel is a type of trading channel. A trading channel is defined as a range within which price shifts. An ascending channel or rising channel can be defined as the upward movement of prices in between very accurate limits. These limits are known as the support level and the resistance level. An ascending ...

What Factors Affect Demand?  The following factors often affect the demand for a product:   Taste Shift Change in Population Change in Income Change in Price of Substitute Goods Change in Price of Complementary Goods Future Expectations of Financial Position A change in any of these factors can cause a shift in demand. The change generally results i...