Shareholders' equity represents the owners' claim after subtracting total liabilities from total assets. It is a crucial metric for understanding a company’s financial health and includes components like share capital and reserves.
Benefits offered by a company to its shareholders as a reward for their loyalty. The benefits are given in addition to dividends and are tax-free.
Shares represent units of ownership in a company, conferring certain rights such as earning dividends and voting in company matters. They can differ in type, such as ordinary shares and preference shares, and their trading is subject to various regulations depending on whether the company is public or private.
Shares authorized refer to the number of shares of stock specified in a company's Articles of Incorporation, which the company is permitted to issue. This figure is displayed in the capital accounts section of a company's balance sheet and typically exceeds the shares issued and outstanding.
Shares issued at a price below their par value. The discount is the difference between the par value and the issue price. It is illegal to issue shares at a discount in the UK.
A share issued at a price above its par value is referred to as being issued at a premium. The premium is the difference between the issue price and the par value of the share.
Shares of Beneficial Interest are proof of an individual's rights and interest in the assets held in a trust or other legal entity.
Shares outstanding, also known as outstanding shares, refer to a company's issued share capital less any shares that have been repurchased by the company. This includes shares not available to the general public, such as those held by company officers or reserved under employee share incentive schemes.
An approved share option scheme established by an employer for the benefit of executives or other employees. HM Customs and Revenue has detailed rules regarding the income tax and capital gains tax chargeable to individuals benefiting from such a scheme.
The ShareSave, also known as a Savings Related Share Option Scheme (SAYE), is a tax-efficient savings plan for employees. Under this scheme, employees can save money each month for a set period and then use their savings to buy shares at a fixed price that was set at the beginning of the savings contract.
Shareware is a type of software distribution model that allows users to try the software before purchasing it.
Shark repellent is a measure undertaken by a corporation to discourage unwanted takeover attempts by making the company less attractive to the potential acquirer.
A firm specializing in the early detection of takeover activities, monitoring trading patterns in a client's stock to identify parties accumulating shares.
An inquiry set up by the Financial Reporting Council (FRC) in 2011 to examine the reporting of liquidity risk and other factors that may threaten the viability of an entity as a going concern, triggered by the financial crisis of 2007-08.
Shekels refer to the ancient and modern form of money originally used in ancient Mesopotamian regions and later recognized as the monetary unit of Israel.
A shell company is a non-trading entity often used for various company maneuvers, including future business activities, tax advantages, or simplified company registration.
A shell corporation is a company that is incorporated but has no significant assets or operations. It may serve legitimate purposes, such as obtaining financing, but can also be used in fraudulent schemes.
The Sherman Antitrust Act of 1890 was the first federal act that outlawed monopolistic business practices. Its purpose was to promote economic fairness and competitiveness and to curb concentrations of power that interfere with trade and reduce economic competition.
A shift is the designated period during which an employee is assigned to work, typically lasting eight hours with additional time allotted for breaks or a meal period.
Extra compensation paid as inducement to accept shift work, especially during evening and midnight hours.
The concept of shifting and incidence of taxation refers to the determination of the economic entity that ultimately bears the tax burden. Certain taxes can be transferred to consumers through price adjustments, while others are absorbed by businesses.
Shirkah refers to an essential concept in Islamic finance, embodying the idea of partnership and collaboration where two or more parties share profits and losses from a venture according to an agreed ratio, underscoring principles of risk-sharing and fairness.
A comprehensive term that can refer to various business-related areas, ranging from retail establishments and production floors to brokerage offices and unionized workforces.
A union member elected by their peers to represent them in dealing with management regarding grievances and other workplace issues.
A comprehensive overview of what a 'shopper' signifies, both as a potential customer and as locally distributed newspapers that focus on advertising local businesses and offers.
A shopping center is a collection of retail stores organized around a common parking area and often featuring key large stores, such as department stores, discount stores, or food stores. This term can also include enclosed malls or walkways.
Consumer products that require considerable time, concentration, and research to make an informed judgment about their relative merits and price.
Shopping services facilitate product acquisition through representative comparisons or dedicated channels, aiding consumers in securing competitive prices or discounts.
A short bond, also known as a short-term bond, refers to a bond with a short maturity period, generally meaning one year or less. These bonds are often classified as current liabilities under the accounting definition of short-term debt.
Short covering is the process by which a short seller purchases securities in the open market to repay the borrowed securities originally sold short. It is an essential action taken to mitigate potential losses or lock in profits.
In various contexts, a short form is an instrument or document that serves as a reference or a simplified version of a longer, more complex document.
Short interest represents the total number of shares of a stock that have been sold short but have not yet been repurchased or closed out. It provides insight into potential market sentiment and investor speculation.
A position held by a dealer in securities, commodities, currencies, etc., where sales exceed holdings because the dealer expects prices to fall, enabling the shorts to be covered at a profit. Contrasts with a long position.
The short run is a period of time long enough for existing firms in an industry to increase production in reaction to changing economic conditions, but not long enough to allow them to increase capacity or for new firms to enter the industry.
A short sale can refer to both an arrangement within financial markets involving the sale of securities, as well as an arrangement between a mortgagor and mortgagee involving a real estate transaction.
Short selling is a trading strategy where an investor borrows shares and sells them on the open market, planning to buy them back later for less money.
A short squeeze occurs when many traders with short positions are forced to buy stocks or commodities to cover their positions and prevent losses, leading to a sudden surge in buying and even higher prices.
The term 'short term' refers to various financial concepts that involve a period of one year or less. This includes assets, liabilities, investments, and taxation definitions.
A tax year that is less than 12 months, usually applicable to start-up companies or businesses that are terminating.
A standard auditors' report in the USA that conforms to the short-form reporting requirements of the Securities and Exchange Commission and the American Institute of Certified Public Accountants. The report is generally divided into two paragraphs: one outlining what the auditor has done and the other detailing the findings.
The short-sale rule, often known as the plus-tick rule, was a regulation enforced by the Securities and Exchange Commission (SEC) requiring that short sales be made only in a rising market. This rule aimed to prevent the manipulation and excessive downward pressure on stock prices.
For tax purposes, a short-term capital gain (loss) is the profit (loss) realized from the sale of securities or other capital assets not held long enough to qualify for a long-term capital gain (loss).
Short-term debt, also known as short-term liabilities, refers to debt obligations that are due for payment within one year from the date of the balance sheet. These are recorded under current liabilities, showcasing the financial obligations a company needs to settle in the near term.
A short-term note issuance facility (SNIF) is a financing arrangement through which an institution can issue short-term notes to investors. This facility provides liquidity and flexibility for the issuing entity to meet its short-term funding needs.
Short-termism refers to policies and practices aimed at maximizing current profits rather than promoting long-term development and wealth creation. It can have significant negative implications on research and development, stakeholder interests, and overall company stability.
A 'shortfall' occurs when the amount of something, such as revenue or contributions, is smaller than what was planned or budgeted for, leading to a deficit.
Shrinkage refers to the difference between the actual physical inventory and the amount that should be on hand according to the book inventory, as well as weight loss experienced in various contexts such as natural grain drying and commodity processing.
Shrinkwrap is a clear plastic coating that covers the boxes in which commercial software is sold, usually serving as an indication that the software is genuine and untampered. It is a significant aspect of retail software distribution.
A production stoppage caused by various factors such as equipment installation or breakdown, shortage of work orders, lack of materials or skilled labor, and other disruptions.
The shutdown point represents the output price level at which a firm's revenues exactly cover fixed costs. Below this price level, a firm's losses would be minimized by ceasing operations as continued production would generate greater losses.
The term 'shyster' refers to an unscrupulous business person, often in the legal profession, who engages in deceptive or unethical practices. Shysters exploit their knowledge and authority to manipulate others for personal gain.
Sick pay refers to payments made to an employee to replace wages during periods of absence due to illness or personal injury. It includes payments from various sources such as employer, welfare funds, and state sickness or disability funds.
A sight draft, also known as a documentary draft, is a type of financial instrument or bill of exchange that is payable upon presentation, typically used in international trade to facilitate the payment for goods and services.
A signature guarantee is a written confirmation from a financial institution such as a bank or brokerage firm that a customer's signature is valid. It ensures the legitimacy of transactions involving the transfer of securities.
An influence by one company on the financial and operating policy decisions of another company (including dividend policy) in which it has an interest. The influence does not need to amount to control.
An upfront payment made to employees as part of the cost of obtaining their services. Often used in competitive job markets to attract top talent.
A silent partner, also known as a limited partner, is an investor who contributes capital to a business but does not involve themselves in the daily management or operations of the company. Unlike general partners, silent partners have limited liability, meaning they can only lose the amount of their investment.
Silicon Valley is a region in California known for its high concentration of tech companies and innovation in high-tech research and development. Named after silicon, a primary component used in semiconductor computer chips, this area has become a global hub for technology startups and established technology giants.
A monetary system where the value of a country's currency is directly linked to a specific amount of silver.
Simple interest is a quick and easy method for calculating the interest charge on a loan or the interest earned on an investment, based on the principal amount, interest rate, and the time period involved.
A SIMPLE IRA (Savings Incentive Match Plan for Employees Individual Retirement Account) is a form of salary reduction plan that qualifying small employers may offer to their employees, providing an efficient way to save for retirement.
Simple Linear Regression: Method for Analyzing the Relationship Between One Independent Variable and One Dependent Variable
The simple rate of return measures the profitability of an investment by dividing the total earnings (income and capital gains) by the original amount invested. It is a straightforward way to assess the financial performance of an investment without considering compounding effects.
A simple trust is a legal arrangement under which the trust must distribute all of its income to beneficiaries annually. It is subject to specific tax regulations and benefits from a $300 standard deduction.
Simple yield is the return equal to the nominal dollar interest divided by the market value (price) of a bond. It is an approximate, simplified rate reflecting the cost to the debtor and the return to the holder of a debt instrument.
The Simplex Method, or Simplex Algorithm, is a method used for solving linear programming problems by iteratively testing feasible solutions until reaching the optimal solution. Designed for computational efficiency, it is particularly well-suited for computer applications.
A SEP-IRA is a retirement plan specifically designed for self-employed individuals and small business owners, allowing for tax-deferred growth of retirement savings.
A Simplified Employee Pension (SEP) Plan is a retirement plan specifically designed for small businesses and self-employed individuals, allowing them to contribute toward retirement savings for themselves and their employees.
Simplified financial statements provide a streamlined version of annual accounts, making financial information accessible to readers who may not possess extensive financial knowledge.
A financial modeling technique that considers the likely outcomes of different hypothetical circumstances. Uncertainty may be modeled by the use of random numbers, as in a *Monte Carlo simulation* or worst cases by the use of *stress testing*.
A sin tax is a specific type of tax imposed on goods that are considered harmful to individuals and society, such as alcohol, tobacco, and gambling. This tax aims to reduce consumption of these products, improve public health, and generate revenue for the government.
Single Life Distributions are monthly annuity payments made to a retired employee for life from a retirement plan. These distributions are taxed when received.
The concept of a single integrated market that underlies trading in the European Union, introduced by the Single European Act of 1986. It targets seamless EU-wide trade by eliminating barriers and harmonizing standards.
Single Premium Life Insurance (SPLI) is a type of life insurance coverage where the policyholder makes a one-time lump sum payment to fully fund the policy. After this initial payment, no further premiums are required for maintaining the coverage.
A Single Property Ownership Trust (SPOT) allows investors to own shares in a specific property, entitling them to a direct share of the property's income and capital. This forms part of a securitization process and is similar to a Property Investment Certificate (PINC).
A Single Property Ownership Trust (SPOT) is a legal fiduciary structure where a single real estate property is held within a trust, managed on behalf of the beneficiaries. This arrangement aims to maximize property value, simplify management, and offer estate planning benefits.
A political philosophy advocating for the confiscation via taxation of the economic rent from land ownership as the sole revenue source for the government, aiming to address poverty by focusing on the unimproved value of land.
A single taxpayer is an individual who files taxes separately from others, and who does not qualify as a head of household or a qualifying widower; they fall into the 'single' filing status category, one of several classifications used by the IRS to determine tax liability.
The term 'single taxpayer' refers to an individual who is not married on the last day of the tax year. This designation affects the rate schedules and tax tables used to calculate their tax liabilities.
A single-capacity system in accounting refers to an accounting structure in which each activity or cost element is identified as serving only one purpose—either serving as a cost center or a revenue generator. Unlike the dual-capacity system, the single-capacity system does not recognize dual roles for cost centers or activities.
A bookkeeping system that records only one aspect of each transaction, either a debit or a credit. Unlike double-entry bookkeeping, it does not balance. Single-entry bookkeeping is simpler and often used by small businesses.
Single-entry bookkeeping is an accounting system that records each transaction only once, without balancing debits and credits.
Single-family housing is a type of residential structure designed to include one dwelling unit. Adjacent units may share walls and other structural components but generally have separate access to the outside, and do not share plumbing and heating equipment. Single-family housing includes detached housing units, townhouses, and zero-lot-line homes.
A limited reserve set aside systematically by an issuer over time to repay debt or to replace an asset in the future.
A form of protest involving workers stopping work but remaining at their place of employment, typically to occupy and take control of the workplace to prevent the use of strikebreakers.
A site refers to a plot of land that is prepared for or underlying a structure or development; essentially, it is the location of a property. The site is a key component in real estate and development projects, impacting various factors from zoning laws to property value.
An evaluation of a site, prior to acquisition of title to the property, for the existence of hazardous waste. This assessment is crucial under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA), as amended by the Superfund Amendments and Reauthorization Act of 1986 (SARA).
Situational Management is a management method whereby the current state of the organization determines which operational procedures will be implemented to achieve desired outcomes. It emphasizes a very adaptive management style.
The place in which an asset is held to be located, determining the applicable laws for rights and liabilities associated with the asset.
The SIX Swiss Exchange is the main stock exchange in Switzerland, created as SWX Swiss Exchange in 1995. It was established by the unification of exchanges in Zurich, Geneva, and Basle into a single fully automated trading system.
The SIX Swiss Exchange is Switzerland's primary stock exchange, facilitating trade in a variety of securities including stocks, bonds, and derivatives. It is renowned for its efficiency and innovative trading technology.
Skill obsolescence refers to the state where certain trade, occupation, or skill becomes outdated or redundant because of technological advancements or automation.
A skill-intensive occupation or job requires a highly skilled workforce capable of performing complex tasks with a high degree of proficiency. Examples of skill-intensive jobs include machinists, computer programmers, tool and die makers, and culinary chefs.
Skimming can refer to either an illegal practice of failing to account for some sales or a marketing strategy involving high initial pricing for new products.
Skype is a popular Internet communication service that allows users to make voice and video calls, send instant messages, and share files over the Internet. It is widely used for personal and business communications.
The term 'slack' refers to periods of reduced activity or efficiency within a business, manufacturing, or operations context. These periods are generally characterized by a slowdown in demand, productivity, or throughput.
Slamming is the illegal practice of changing a customer's long distance telephone service provider without the customer's permission.
Slander involves making false spoken statements which are damaging to another person's reputation. It is a form of defamation that is communicated orally.
A stock in which there is little investor interest but has significant potential to gain in price once its attractions are recognized. Sleepers are most easily recognized in retrospect, after they have already moved up in price.
A potential target that has not yet been approached by an acquirer. Such a company usually has particularly attractive features, such as a large amount of cash or under-valued real estate or other assets.
