What Is a Derivatives Time Bomb? “Derivatives time bomb” is a descriptive term for possible market mayhem if there is a sudden, as opposed to orderly, unwinding of massive derivatives positions. “Time bomb” as a reference to derivatives is a moniker attributable to Warren Buffett. In his 2002 Chairman’s Letter for Berkshire Hathaway, he said, “We view them as
What Is Derived Demand? Derived demand—in economics—is the demand for a good or service that results from the demand for a different, or related, good or service. It is a demand for some physical or intangible thing where a market exists for both related goods and services in question. Derived demand can have a significant
What Is a Descending Triangle? A descending triangle is a chart pattern used in technical analysis created by drawing one trend line connecting a series of lower highs and a second horizontal trend line connecting a series of lows. A regular descending triangle pattern is commonly considered a bearish chart pattern or a continuation pattern with
What Are Descriptive Statistics? Descriptive statistics are brief informational coefficients that summarize a given data set, which can be either a representation of the entire population or a sample of a population. Descriptive statistics are broken down into measures of central tendency and measures of variability (spread). Measures of central tendency include the mean, median
What Is Descriptive Analytics? Descriptive analytics is the interpretation of historical data to better understand changes that have occurred in a business. Descriptive analytics describes the use of a range of historic data to draw comparisons. Most commonly reported financial metrics are a product of descriptive analytics, for example, year-over-year pricing changes, month-over-month sales growth, the
What is Descriptive Billing Descriptive Billing is a form of billing customers for credit card transactions that provides details of each transaction. Typically, a customer receiving descriptive billing will receive information on the date of the transaction, merchant information, a description of the goods or services rendered and other details. BREAKING DOWN Descriptive Billing Descriptive
What Is a Designated Beneficiary? A designated beneficiary is a person who has been named to inherit an asset such as the balance of an individual retirement account (IRA), annuity, or life insurance policy after the death of the asset’s owner. It is also known as a named beneficiary. The Setting Every Community Up for
What Is a Designated Roth Account? A designated Roth account is a separate account in a 401(k), 403(b), or governmental 457(b) that holds designated Roth contributions. Designated Roth contributions are elective deferrals that the participant elects to include in gross income. Key Takeaways A designated Roth account is a separate account in a 401(k), 403(b)
What Is a Design Patent? A design patent is a form of legal protection of the unique visual qualities of a manufactured item. A design patent may be granted if the product has a distinct configuration, distinct surface ornamentation or both. In other words, a design patent provides protection for the ornamental design of something that
What Is Detection Risk? Detection risk is the chance that an auditor will fail to find material misstatements that exist in an entity’s financial statements. These misstatements may be due to either fraud or error. Auditors make use of audit procedures to detect these misstatements. However, because of the nature of audit procedures, some detection risk
