What Is Backtesting? Backtesting is the general method for seeing how well a strategy or model would have done ex-post. Backtesting assesses the viability of a trading strategy by discovering how it would play out using historical data. If backtesting works, traders and analysts may have the confidence to employ it going forward. Key Takeaways
What Is a Back-to-Back Commitment? A back-to-back commitment is a commitment to make a second take-out loan that piggybacks another loan. With a back-to-back commitment, once the terms of the first loan are satisfied, they will be rolled into the second loan. Key Takeaways A back-to-back commitment is a commitment to make a second take-out
What is Aviation Accident Insurance Aviation Accident Insurance provides coverage for injuries resulting from an aircraft accident. Aviation accident insurance covers injuries sustained by pilots as well as travelers, with the type of coverage typically accidental death and dismemberment (AD&D). Understanding Aviation Accident Insurance The first aviation insurance was underwritten by Lloyds of London in
What Is an Avoidable Cost? An avoidable cost is an expense that will not be incurred if a particular activity is not performed. Avoidable costs refer primarily to variable costs that can be removed from a business operation, unlike most fixed costs, which must be paid regardless of the activity level of a company. There
What Is a FAFSA Award Letter? An award letter is the documentation sent from a college or university to the student that details how much financial support the student is eligible to receive. The award letter is sent following the student’s submission of the Free Application for Federal Student Aid (FAFSA) and application to attend college
What Does “Away From Home” Mean? “Away from home” is a phrase used by the Internal Revenue Service (IRS) to express that a taxpayer is not within commuting distance from home. If the taxpayer works away from home for longer than a normal workday and requires sleep, then the associated costs are tax deductible. If
What Is Ax? Ax is the moniker given to the market maker who is most central to the price action of a specific security across tradable exchanges. Key Takeaways Ax is the moniker given to the market maker who is most central to the price action of a specific security across tradable exchanges.The ax can
What Is the NYSE Amex Equities? The term NYSE Amex Equities refers to an American stock exchange best known for trading small-cap, micro-cap, corporate bonds, exchange traded funds (ETFs), and other kinds of investments. The exchange was called the American Stock Exchange (AMEX) before being acquired by NYSE Euronext. The exchange went through a series
What Is The Accounting Review? The Accounting Review is a peer-reviewed academic journal circulated by the American Accounting Association (AAA). First published in 1926, it is one of the oldest accounting journals and includes abstracts, articles, and book reviews that promote accounting education, research, and practice. Key Takeaways The Accounting Review is a peer-reviewed academic journal circulated by the American Accounting
What Is an ABA Transit Number? ABA transit numbers, also known as ABA routing or routing transfer numbers, are used to identify specific U.S. financial institutions and appear on standard checks. Basically, it is a nine-digit numeric address for each bank. Key Takeaways An ABA transit number is a set of numerals that identify a
