(ECONOMICS) method of transferring wealth from a buyer to a seller, usually over long distances and under different currency systems. Requires the buyer to have an account with a banker in the other city; the buyer sends a note ordering his banker to credit the seller's account by the amount being paid.
Bills of exchange were adopted in 13th century Italy; almost as soon as they became common, traders began to use them as a speculative instrument (discounting bad ones and reselling them) or else as a sleazy method of borrowing money (by "drawing and redrawing," i.e., where two merchants in different towns agree to exchange bills of exchange with each other). "Drawing and redrawing" is analogous to the method used by college students on the 1980's of writing checks to each other every couple of days and depositing them in ATM's so their checking accounts wouldn't bounce.
Bills of exchange were adopted in 13th century Italy; almost as soon as they became common, traders began to use them as a speculative instrument (discounting bad ones and reselling them) or else as a sleazy method of borrowing money (by "drawing and redrawing," i.e., where two merchants in different towns agree to exchange bills of exchange with each other). "Drawing and redrawing" is analogous to the method used by college students on the 1980's of writing checks to each other every couple of days and depositing them in ATM's so their checking accounts wouldn't bounce.
A bill of exchange is a type of "negotiable instrument" (contractual form of money).
A modern form of bill would be a check.
A modern form of bill would be a check.
by Abu Yahya September 07, 2010
national income and product accounting; refers to the formal system of measuring capital accounts, current accounts, and gross domestic product.
National income and product accounting is the centerpiece of national economic
accounting in the United States. The NIPA's show the real and nominal value of output, the composition of output, and the distribution across types of income generated in its production.
Abraham & Mackie, *Beyond the Market,* p.40
accounting in the United States. The NIPA's show the real and nominal value of output, the composition of output, and the distribution across types of income generated in its production.
Abraham & Mackie, *Beyond the Market,* p.40
by Abu Yahya February 14, 2009
(HISTORY OF IRAN) More accurately known as Reza Shah; founder of the Pahlavi Dynasty (1925-1979), shah (emperor) of Iran from 1925 to his ouster in 1942 (by invading British and Russian armies).
Born, 1878; died, 1944. Originally in the regular Iranian Army, when the Iranian monarchy was bankrupted he contracted out to command a cossack division for the Anglo Persian Oil Company (British Petroleum). As a result, he actually had a lot of money and was able to become the prime minister (1922), and then depose the old Dynasty, the Qejars.
As Shah, he promised to revise the hated concession to Anglo Iranian Oil Company, but they managed to stall and thwart him with the help of the International Court of Justice. As a result, he turned to the Axis Powers. When World War II broke out, he offered some help to the Germans and Italians, so the British invaded and replaced him with his son, Shah Muhammad Reza.
Born, 1878; died, 1944. Originally in the regular Iranian Army, when the Iranian monarchy was bankrupted he contracted out to command a cossack division for the Anglo Persian Oil Company (British Petroleum). As a result, he actually had a lot of money and was able to become the prime minister (1922), and then depose the old Dynasty, the Qejars.
As Shah, he promised to revise the hated concession to Anglo Iranian Oil Company, but they managed to stall and thwart him with the help of the International Court of Justice. As a result, he turned to the Axis Powers. When World War II broke out, he offered some help to the Germans and Italians, so the British invaded and replaced him with his son, Shah Muhammad Reza.
Shah Reza Pahlavi is often compared with Ataturk, a contemporaneous dictator of Turkey. However, Reza Shah was much more reliant on a cooperative clergy than Ataturk was.
by Abu Yahya July 17, 2010
(FINANCE) private equity fund; business entity formed to pool money provided by investors in order to buy majority stakes in existing companies. A common practice is to then "take the company private," so that it no longer has shares trading on the stock market. The company is then restructured, so that it has entirely different management practices, or a different business strategy. Afterward, the PE fund will most likely re-sell the company on the stock market in a sponsored IPO.
PE funds are usually limited partnerships (LPs), which gives them special privileges of nondisclosure; most are organized in the State of Delaware. PEF's have sponsors, or "principals," who are responsible for organizing the fund and recruiting other investors. They are never "limited liability partnerships" (LLP's); apologies to Urban Dictionary for erroneously mixing them up in my definition for "private equity fund" and "hedge fund." The difference between the two is explained there.
Among the best-known PE funds are Blackstone Group*, Kohlberg Kravis Roberts (KKR)*, Goldman Sachs Capital Partners*, Carlyle Group, Permira, Apollo Management, Providence Equity, TPG Capital, Warburg Pincus, and Cerberus. Companies marked with an asterisk (*) are publicly listed corporations; most PE funds are privately managed. The selection above includes the largest ones by capital under management.
PE funds are usually limited partnerships (LPs), which gives them special privileges of nondisclosure; most are organized in the State of Delaware. PEF's have sponsors, or "principals," who are responsible for organizing the fund and recruiting other investors. They are never "limited liability partnerships" (LLP's); apologies to Urban Dictionary for erroneously mixing them up in my definition for "private equity fund" and "hedge fund." The difference between the two is explained there.
Among the best-known PE funds are Blackstone Group*, Kohlberg Kravis Roberts (KKR)*, Goldman Sachs Capital Partners*, Carlyle Group, Permira, Apollo Management, Providence Equity, TPG Capital, Warburg Pincus, and Cerberus. Companies marked with an asterisk (*) are publicly listed corporations; most PE funds are privately managed. The selection above includes the largest ones by capital under management.
The PE fund first appeared in the 1970's as a result of changes to ERISA. Institutional investors, usually pension funds, could be legal partners in an LP; they also required a place to park assets with very high rates of return.
In the USA, PE funds have long been sinecures for the most powerful political dynasties: the Rockefellers, the Romneys, the Bushes, and others.
In the USA, PE funds have long been sinecures for the most powerful political dynasties: the Rockefellers, the Romneys, the Bushes, and others.
by Abu Yahya September 02, 2010
(ECONOMICS) a financial institution that issues the national currency and administers monetary policy.
For the USA, the central bank is the Federal Reserve System.
In a few cases, the central bank is private, and otherwise similar to a regular commercial bank. In other cases, it is directly controlled by the head of government. In most cases, however, it is a government agency that is shielded from direct control.
OTHER IMPORTANT CENTRAL BANKS
European Union--European Central Bank (ECB).
Japan--Bank of Japan
China--People's Bank of China
United Kingdom--Bank of England
See also the International Monetary Fund and the Bank for International Settlements.
For the USA, the central bank is the Federal Reserve System.
In a few cases, the central bank is private, and otherwise similar to a regular commercial bank. In other cases, it is directly controlled by the head of government. In most cases, however, it is a government agency that is shielded from direct control.
OTHER IMPORTANT CENTRAL BANKS
European Union--European Central Bank (ECB).
Japan--Bank of Japan
China--People's Bank of China
United Kingdom--Bank of England
See also the International Monetary Fund and the Bank for International Settlements.
In the USA, as well as many other countries, the Treasury acts as the government's underwriter but the central bank controls the money supply using treasury securities and other forms of hot money. The central bank is usually responsible for managing the currency reserves, including foreign currency reserves, of its government. It also enforces banking laws and operates check clearing.
The BIS acts as a bank to most of the world's central banks.
The BIS acts as a bank to most of the world's central banks.
by Abu Yahya May 05, 2010
taking an investment position that will benefit if the value of the stock goes down. Traditionally, "shorting a stock" means borrowing shares of stock from another broker, selling them, then buying them back (after the price has fallen) in order to return the stocks to the broker from whom they were borrowed.
You can short a stock using a derivative; this can include buying futures in the stock (i.e., a contract to sell someone else the stocks); or buying a put option (also called a put). A third way is to write a call (i.e., a call option, also known as a call) for the stock.
You can short a stock using a derivative; this can include buying futures in the stock (i.e., a contract to sell someone else the stocks); or buying a put option (also called a put). A third way is to write a call (i.e., a call option, also known as a call) for the stock.
Shorting a stock usually requires a great deal of skill and courage; even the most talented short will only make money during rare crises.
by Abu Yahya April 05, 2010
(FINANCE) market price of a traded stock, commodity, currency, or bond at a specific point in time. For example, right now it's 5 April 2010 08:10 (GMT), and the spot price of WTI crude is $85.56/bbl. Spot price is the price at a specified time on a specific market.
by Abu Yahya April 05, 2010