What Does NINJA Loan Mean?
A slang term for a loan extended to a borrower with "no income, no job and no assets". Whereas most lenders require the borrower to show a stable stream of income or sufficient collateral, a NINJA loan ignores the verification process.
Investopedia explains NINJA Loan
A NINJA loan is considered to be a type of subprime lending, often found in the mortgage market. While the specifics of any NINJA loan can change, most offer the lender a low initial rate, which is then increased after a few periods of payment. The borrower is hoping for the value of their property to appreciate significantly, allowing them to repay the loan with the newly found equity. However, when the property doesn't appreciate, many borrowers cannot make the repayment. This makes the NINJA loan a very risky proposition for lenders.
Source: http://www.investopedia.com/terms/n/ninja-loan.asp
Friday, September 10, 2010
Elevator Pitch
What Does Elevator Pitch Mean?
A slang term used to describe a brief speech that outlines an idea for a product, service or project. The name comes from the notion that the speech should be delivered in the short time period of an elevator ride, usually 20-60 seconds.
In the financial world, the speech refers to an entrepreneur's attempt to convince a venture capitalist that a business idea is worth investing in.
Investopedia explains Elevator Pitch
Venture capitalists use the quality of the elevator speech as a way to judge whether to continue with an idea. The elevator pitch is also used by project managers, salespeople and jobseekers as a way to market themselves or their ideas. An elevator pitch should include why your product, idea or project is worth investing in by explaining such things as the features, benefits and cost savings.
Source: http://www.investopedia.com/terms/e/elevatorpitch.asp
A slang term used to describe a brief speech that outlines an idea for a product, service or project. The name comes from the notion that the speech should be delivered in the short time period of an elevator ride, usually 20-60 seconds.
In the financial world, the speech refers to an entrepreneur's attempt to convince a venture capitalist that a business idea is worth investing in.
Investopedia explains Elevator Pitch
Venture capitalists use the quality of the elevator speech as a way to judge whether to continue with an idea. The elevator pitch is also used by project managers, salespeople and jobseekers as a way to market themselves or their ideas. An elevator pitch should include why your product, idea or project is worth investing in by explaining such things as the features, benefits and cost savings.
Source: http://www.investopedia.com/terms/e/elevatorpitch.asp
Greenshoe Option
What Does Greenshoe Option Mean?
A provision contained in an underwriting agreement that gives the underwriter the right to sell investors more shares than originally planned by the issuer. This would normally be done if the demand for a security issue proves higher than expected. Legally referred to as an over-allotment option.
A greenshoe option can provide additional price stability to a security issue because the underwriter has the ability to increase supply and smooth out price fluctuations if demand surges.
Investopedia explains Greenshoe Option
Greenshoe options typically allow underwriters to sell up to 15% more shares than the original number set by the issuer, if demand conditions warrant such action. However, some issuers prefer not to include greenshoe options in their underwriting agreements under certain circumstances, such as if the issuer wants to fund a specific project with a fixed amount of cost and does not want more capital than it originally sought.
The term is derived from the fact that the Green Shoe Company was the first to issue this type of option.
Source: http://www.investopedia.com/terms/g/greenshoe.asp
A provision contained in an underwriting agreement that gives the underwriter the right to sell investors more shares than originally planned by the issuer. This would normally be done if the demand for a security issue proves higher than expected. Legally referred to as an over-allotment option.
A greenshoe option can provide additional price stability to a security issue because the underwriter has the ability to increase supply and smooth out price fluctuations if demand surges.
Investopedia explains Greenshoe Option
Greenshoe options typically allow underwriters to sell up to 15% more shares than the original number set by the issuer, if demand conditions warrant such action. However, some issuers prefer not to include greenshoe options in their underwriting agreements under certain circumstances, such as if the issuer wants to fund a specific project with a fixed amount of cost and does not want more capital than it originally sought.
The term is derived from the fact that the Green Shoe Company was the first to issue this type of option.
Source: http://www.investopedia.com/terms/g/greenshoe.asp
Thursday, September 9, 2010
Pareto Principle
What Does Pareto Principle Mean?
A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The principle states that, for many phenomena, 20% of invested input is responsible for 80% of the results obtained. Put another way, 80% of consequences stem from 20% of the causes. Also referred to as the "Pareto rule" or the "80/20 rule".
Investopedia explains Pareto Principle
This principle serves as a general reminder that the relationship between inputs and outputs is not balanced. For instance, the efforts of 20% of a corporation's staff could drive 80% of the firm's profits. In terms of personal time management, 80% of your work-related output could come from only 20% of your time at work.
The Pareto Principle can be applied in a wide range of areas such as manufacturing, management and human resources. In Pareto's case, he used the rule to explain how 80% of property in Italy was owned by 20% of the country's population.
Source: http://www.investopedia.com/terms/p/paretoprinciple.asp
A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The principle states that, for many phenomena, 20% of invested input is responsible for 80% of the results obtained. Put another way, 80% of consequences stem from 20% of the causes. Also referred to as the "Pareto rule" or the "80/20 rule".
Investopedia explains Pareto Principle
This principle serves as a general reminder that the relationship between inputs and outputs is not balanced. For instance, the efforts of 20% of a corporation's staff could drive 80% of the firm's profits. In terms of personal time management, 80% of your work-related output could come from only 20% of your time at work.
The Pareto Principle can be applied in a wide range of areas such as manufacturing, management and human resources. In Pareto's case, he used the rule to explain how 80% of property in Italy was owned by 20% of the country's population.
Source: http://www.investopedia.com/terms/p/paretoprinciple.asp
Iceberg Principle
Observation that in many (if not most) cases only a very small amount (the 'tip') of information is available or visible about a situation or phenomenon, whereas the 'real' information or bulk of data is either unavailable or hidden.
The principle gets its name from the fact that only about 1/10th of an iceberg's mass is seen outside while about 9/10th of it is unseen, deep down in water.
Source: http://www.businessdictionary.com/definition/iceberg-principle.html#ixzz0z2LyJbMx
The principle gets its name from the fact that only about 1/10th of an iceberg's mass is seen outside while about 9/10th of it is unseen, deep down in water.
Source: http://www.businessdictionary.com/definition/iceberg-principle.html#ixzz0z2LyJbMx
Friday, September 3, 2010
- A memorandum is written not to inform the reader, but to protect the writer.
- Recession is when your neighbour loses his job. Depression is when you lose your job.
- A conclusion is arrived at a point where you got tired of thinking.
- A crisis is when you cannot say "let's just forget the whole thing".
- Ability is like a check, it has no value unless it is cashed.
- A consensus means that everyone agrees to say collectively what no one believes individually.
- According to the official figures, 43% of all statistics are totally worthless.
Wednesday, September 1, 2010
OK TATA
In India, chances are you could spend an entire day using products created by Tata. You could take Tata Indica (or a Tata bus or a truck, if you're adventurous enough) to the Taj hotel, turn on the Voltas aircon, watch TV bought from the Croma retail store, use TataSky to do so with electricity supplied by Tata Power, wear clothes from apparel retailer Westside, read books while lounging on cushions from multimedia and stationary vendor Landmark, check the time on your Titan watch, surf the internet with Tata Photon and make calls with Docomo, sprinkle Tata Salt on your grub using crockery and cutlery made by Tata Ceramics while sipping Tata Tea and drive out to a Taj beach resort for the weekend on a bridge constructed with Tata Steel. All this while you drink water from their Himalaya Brand. In India, brand Tata is a way of life.
Even after 142 years, Brand Tata continues to grip the consumer psyche with honesty, integrity and purpose.
Source: Brand Equity, The Economic Times, 25 August 2010
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