What is the Tick Index? The tick index compares the number of stocks that are rising to the number of stocks that are falling on the New York Stock Exchange (NYSE). The index measures stocks making an uptick and subtracts stocks making a downtick. For example, there are roughly 2,800 stocks listed on the NYSE. If
What Is the Times Interest Earned Ratio? The times interest earned (TIE) ratio is a measure of a company’s ability to meet its debt obligations based on its current income. The formula for a company’s TIE number is earnings before interest and taxes (EBIT) divided by the total interest payable on bonds and other debt.
What Is Tied Selling? Tied selling is the illegal practice of a company providing a product or service on the condition that a customer purchases some other product or service. It is frequently used in reference to banks and is sometimes referred to as coercive tied selling. Tied selling is also associated with the sales practices of
What Is the Tier 1 Capital Ratio? The tier 1 capital ratio is the ratio of a bank’s core tier 1 capital—that is, its equity capital and disclosed reserves—to its total risk-weighted assets. It is a key measure of a bank’s financial strength that has been adopted as part of the Basel III Accord on
What Is the Tier 1 Leverage Ratio? The Tier 1 leverage ratio measures a bank’s core capital relative to its total assets. The ratio looks specifically at Tier 1 capital to judge how leveraged a bank is based on its assets. Tier 1 capital are those assets that can be easily liquidated if a bank
What Is Tier 3 Capital? Tier 3 capital is tertiary capital, which many banks hold to support their market risk, commodities risk, and foreign currency risk, derived from trading activities. Tier 3 capital includes a greater variety of debt than tier 1 and tier 2 capital but is of a much lower quality than either
What Are Treasury Investment Growth Receipts (TIGRs)? Treasury Investment Growth Receipts (TIGRs), issued from 1982 until 1986, were zero-coupon bonds based on U.S. Treasury bonds held by Merrill Lynch. Key Takeaways Treasury Investment Growth Receipts (TIGRs) were zero-coupon bonds based on U.S. Treasury bonds held by Merrill Lynch.TIGRs and similar securities became popular in the
Who Was Theodore W. Schultz? Theodore W. Schultz, who went by the name Ted Schultz, was born on April 30, 1902 and died on Feb. 26, 1998. He was an American Nobel Prize recipient, an economist, and the chair of Economics at the University of Chicago. He is most famous for developing the Human Capital
What is the Theoretical Value (Of A Right)? The theoretical value (of a right) is the value of a subscription right. During the period of time when a new rights offering is announced up until three days before the subscription rights expire (known as the cum rights period), the value of the right is specific
What Is the Theory of the Firm? In neoclassical economics—an approach to economics focusing on the determination of goods, outputs, and income distributions in markets through supply and demand—the theory of the firm is a microeconomic concept that states that a firm exists and make decisions to maximize profits. A firm maximizes profits by creating a gap between revenue and
