What It Is and How It Works

What It Is and How It Works

What Is the Credit Default Swap Index (CDX)? The credit default swap index (CDX), formerly the Dow Jones CDX, is a benchmark financial instrument made up of credit default swaps (CDS) that have been issued by North American or emerging market companies. The CDX was the first CDS index, which was created in the early 2000s and

Downgrade Definition

Downgrade Definition

What Is a Downgrade? A downgrade is a negative change in the rating of a stock’s expected performance, issued by an analyst for a financial services firm. The analyst is indicating that the company’s future prospects have weakened. Many financial services firms employ analysts to provide research, including rating stocks with a buy, hold, or

DownREIT Definition

DownREIT Definition

What Is DownREIT? DownREIT is a joint endeavor between a real estate owner and a real estate investment trust (REIT) for the purpose of acquiring and controlling real estate. Key Takeaways A DownREIT is a partnership agreement between an REIT and a real estate owner that enables deferring of tax on sale of appreciated real

Downshifting Definition

Downshifting Definition

What Is Downshifting? Downshifting is reducing one’s standard of living for simplicity and improved quality of life. Downshifting assumes a trade-off between money or level of wealth, and quality of life, which relates to well-being. Downshifters believe that through fewer hours of work they can have time to enjoy the important things in life. For

Downsizing: Because of this, Consequences and Examples

Downsizing: Because of this, Consequences and Examples

What Is Downsizing? Downsizing is the permanent reduction of a company’s labor force through the elimination of unproductive workers or divisions. Downsizing is a common organizational practice, usually associated with economic downturns and failing businesses. Cutting jobs is the fastest way to cut costs, and downsizing an entire store, branch or division also frees assets