abu yahya's definitions
Capital (in economics) refers to either equipment used to produce goods (tools, factory buildings, infrastructure) or money that is currently used to pay for business ventures. Capital accounts refers to the balance of investment that a country receives from, or supplies to, other countries over the course of a business period. So, for example, in the course of a year the people in country A may buy $1.5 million in shares and bonds from overseas, and sell $900,000 of the same (for net capital exports of $600K); meanwhile, foreigners might buy $1.2 million in shares, etc., while selling $800K of the same (capital imports of $400K). The country therefore exports $600K, imports $400K, and runs a net capital account balance of -$200K.
Over the short run, a capital account surplus can offset a current account deficit.
Over the short run, a capital account surplus can offset a current account deficit.
For the last 30 years the USA has run a surplus in its capital accounts, partly offsetting a gigantic deficit in current accounts.
by abu yahya September 28, 2008
Get the capital accountsmug. (FINANCE) a type of financial derivative which two parties "swap," or exchange, the streams of income (or payments) from two different sources. The actual instrument is created by a third party, such as an investment bank.
The most familiar version of the swap is the interest rate swap, in which the holder of a fixed rate loan and the holder of an adjustable rate loan agree to exchange revenue streams.
The variety of swaps available is massively greater than with options or futures; essentially, swaps exist for every arbitrage opportunity that any combination of markets provides; the market for swaps is huge.
The most familiar version of the swap is the interest rate swap, in which the holder of a fixed rate loan and the holder of an adjustable rate loan agree to exchange revenue streams.
The variety of swaps available is massively greater than with options or futures; essentially, swaps exist for every arbitrage opportunity that any combination of markets provides; the market for swaps is huge.
BILL: Why do firms buy swaps? Why don't they just sell the loans they have to other banks, or whatever?
ANNA: One is that swaps are a method of hedging risk; you hold the bond in case the price goes up, but you buy interest rate swaps to protect against having average rates in your portfolio that are two high or two low.
ANNA: One is that swaps are a method of hedging risk; you hold the bond in case the price goes up, but you buy interest rate swaps to protect against having average rates in your portfolio that are two high or two low.
by Abu Yahya April 5, 2010
Get the swapmug. (ECONOMICS) the capital that a business sells in order to make money. The obvious example is the inventory of a convenience store; in this case, the circulating capital is the merchandise, and the fixed capital includes the cash register, the display racks, and so on.
In other cases, the circulating capital consists of raw materials or supplies; for example, a mechanic has transmission fluid or air filters, while a dress maker has muslin and thread.
In other cases, the circulating capital consists of raw materials or supplies; for example, a mechanic has transmission fluid or air filters, while a dress maker has muslin and thread.
An entrepreneur makes money by hanging onto fixed capital as long as possible, and getting rid of circulating capital as fast as possible.
by Abu Yahya May 4, 2010
Get the circulating capitalmug. (FINANCE) issue of stock by a firm that already has stock in circulation.
Follow-on offerings account for a little over 83% of new finance capital raised on the NYSE. The other 17% was initial public offering (IPO).
Follow-on offerings account for a little over 83% of new finance capital raised on the NYSE. The other 17% was initial public offering (IPO).
Between 1 January and 31 August 2010, 46 companies had made an initial public offering on the NYSE; another 33 had made a follow-on offering. But while the IPO's accounted for $9.5 billion, the FOO's accounted for almost $55 billion.
by Abu Yahya September 29, 2010
Get the follow-on offeringmug. (ECONOMICS) Total unemployed, as a percent of the civilian labor force (official unemployment rate). Does not include discouraged workers. Also referred to as "U-3" by the US Bureau of Labor Statistics (BLS).
The BLS regularly publishes six estimates of unemployment. The others are U-1, U-3, U-4, U-5, and U-6. Eurostat publishes one monthly estimate of unemployment for the European Union, which is approximately midway between U-3 and U-4.
The unemployment statistics for the USA are collected through a monthly Current Population Survey (CPS) (also known as the household survey) and an establishment survey.
The BLS regularly publishes six estimates of unemployment. The others are U-1, U-3, U-4, U-5, and U-6. Eurostat publishes one monthly estimate of unemployment for the European Union, which is approximately midway between U-3 and U-4.
The unemployment statistics for the USA are collected through a monthly Current Population Survey (CPS) (also known as the household survey) and an establishment survey.
Given the way the government's headline unemployment rate is calculated, it can never reach 14%. This is because the civilian labor force includes only people who are working or have looked for a job in the previous four weeks. When the economy gets really bad (like now), unemployed workers get discouraged and give up looking for jobs. This causes the civilian labor force to decline as fast or faster than total employment.
{Louis Woodhill, "On Track for 14% Unemployment," RealClearMarkets (12 Jan 2010)}
{Louis Woodhill, "On Track for 14% Unemployment," RealClearMarkets (12 Jan 2010)}
by Abu Yahya July 19, 2010
Get the headline unemploymentmug. (LOGIC) a logical fallacy in which a person defends against an allegation by accusing an adversary of doing the same thing. It's a classic douchebag move because it implies that the speaker has a RIGHT to be a douchebag, by virtue of the fact that someone ELSE is being a douchebag.
From Latin, for "you, too."
WHY IT'S BAD
Suppose A is accused of terrorism. He reacts by accusing B, his enemy, of terrorism. Now, it's possible (but unlikely) that A actually chose this argument knowing he was totally innocent. More likely he wants to claim that his terrorism is PROVOKED. In effect, he's saying, "I have to do this, or I'm entitled to do this, because B did it first."
First, as logic it's a red herring. But what makes it douchebaggery rather than just another wartime propaganda tactic, is that it's MORALLY irrelevant as well as LOGICALLY irrelevant. The victims of terrorism almost never have any material control over either perpetrator ever.
From Latin, for "you, too."
WHY IT'S BAD
Suppose A is accused of terrorism. He reacts by accusing B, his enemy, of terrorism. Now, it's possible (but unlikely) that A actually chose this argument knowing he was totally innocent. More likely he wants to claim that his terrorism is PROVOKED. In effect, he's saying, "I have to do this, or I'm entitled to do this, because B did it first."
First, as logic it's a red herring. But what makes it douchebaggery rather than just another wartime propaganda tactic, is that it's MORALLY irrelevant as well as LOGICALLY irrelevant. The victims of terrorism almost never have any material control over either perpetrator ever.
ANNA: Abu Yahya, I don't know if your definition of "tu quoque fallacy" belongs in the Urban Dictionary. This isn't Wikipedia, you know.
ABU YAHYA: The reason I did is that I see all the time people using the rationale that, because somebody else did something bad to me, therefore I get to do something similar to anybody. It's sort of like sloppy revenge.
ANNA: Like men punishing random women because their girlfriends allegedly did something shitty to them?
ABU YAHYA: Actually, that's a perfect example of a tu quoque!
ABU YAHYA: The reason I did is that I see all the time people using the rationale that, because somebody else did something bad to me, therefore I get to do something similar to anybody. It's sort of like sloppy revenge.
ANNA: Like men punishing random women because their girlfriends allegedly did something shitty to them?
ABU YAHYA: Actually, that's a perfect example of a tu quoque!
by Abu Yahya June 3, 2010
Get the tu quoque fallacymug. (FINANCE) a type of bank that raises money for clients by issuing stock (see initial public offering and follow-on offering) or by issuing bonds.
Prior to the repeal (1999) of the Glass-Steagall Act, commercial banks and investment banks were required to be separate entities. Subsequently, the law was changed so that a bank holding company could own a commercial bank and an investment bank. Outside of the USA, commercial banks have always been allowed to engage in underwriting securities.
Investment banks usually sell shares of stock on a major exchange, such as the NYSE or NASDAQ. They give a fixed amount of money to the borrower, but also an agreed-upon number of shares, so if the shares soar in price after the public offering, then the investment bank makes an immense amount of money.
Investment banks also underwrite other kinds of securities, such as bonds.
Prior to the repeal (1999) of the Glass-Steagall Act, commercial banks and investment banks were required to be separate entities. Subsequently, the law was changed so that a bank holding company could own a commercial bank and an investment bank. Outside of the USA, commercial banks have always been allowed to engage in underwriting securities.
Investment banks usually sell shares of stock on a major exchange, such as the NYSE or NASDAQ. They give a fixed amount of money to the borrower, but also an agreed-upon number of shares, so if the shares soar in price after the public offering, then the investment bank makes an immense amount of money.
Investment banks also underwrite other kinds of securities, such as bonds.
Goldman Sachs is the largest and most successful investment bank in the USA. Prior to 1999 it was a limited partnership; now it is a publicly traded corporation and also a bank holding company.
by Abu Yahya September 25, 2010
Get the investment bankmug.