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
What Is the Theory of Price? The theory of price is an economic theory that states that the price for a specific good or service is determined by the relationship between its supply and demand at any given point. Prices should rise if demand exceeds supply and fall if supply exceeds demand. Key Takeaways The
What Is Theta? The term “theta” refers to the rate of decline in the value of an option due to the passage of time. It can also be referred to as the time decay of an option. This means an option loses value as time moves closer to its maturity, as long as everything is
What Is a Thin File? A “thin file” refers to the credit report of someone with little or no credit history. Consumers who are just starting out and may never have taken out a loan or had a credit card are said to have thin files. Key Takeaways A person with little or no credit
What Is the Third Market? A third market consists of trading conducted by non-exchange member broker-dealers and institutional investors of exchange-listed stocks. In other words, the third market involves exchange-listed securities that are being traded over-the-counter between broker-dealers and large institutional investors. The term “over-the-counter” typically refers to the trading of securities that are not listed
What Is a Third Market Maker? A third market maker is a type of market maker that deals in the third market, which is a segment of the financial markets in which exchange-traded securities are exchanged over-the-counter (OTC) by institutional investors. The term can also be used in a more general sense to refer to
What Is a Third Party? A third party is an individual or entity that is involved in a transaction but is not one of the principals and, thus, has a lesser interest in the transaction. An example of a third party would be the escrow company in a real estate transaction; the escrow party acts
What Is a Third-Party Mortgage Originator? A third-party mortgage originator is any third party that works with a lender to originate a mortgage loan. Third-party mortgage originators may include any person or company actively engaged in the marketing of mortgages, gathering information for mortgage applications, underwriting mortgages, or funding mortgage loans. Lenders may rely on
