What Is a Stock Certificate? A stock certificate is a physical piece of paper that represents a shareholder’s ownership in a company. Stock certificates include information such as the number of shares owned, the date of purchase, an identification number, usually a corporate seal, and signatures. The certificates are most often a bit bigger than
What Is Stock Compensation? Stock compensation is a way corporations use stock options to reward employees. Employees with stock options need to know whether their stock is vested and will retain its full value even if they are no longer employed with that company. Because tax consequences depend on the fair market value (FMV) of
What Is a Stock Dividend? A stock dividend is a payment to shareholders that consists of additional shares rather than cash. The distributions are paid in fractions per existing share. For example, if a company issues a stock dividend of 5%, it will pay 0.05 shares for every share owned by a shareholder. The owner
What Is Static Gap? Static gap is a measure of exposure or sensitivity to interest rates, calculated as the difference between assets and liabilities of comparable repricing periods. Static gap measures the exposure or sensitivity to interest rates. It is the difference between assets and liabilities of comparable repricing periods. It can be calculated for short-term
What Is Statistical Arbitrage? In the world of finance, statistical arbitrage (or stat arb) refers to a group of trading strategies that utilize mean reversion analyses to invest in diverse portfolios of up to thousands of securities for a very short period of time, often only a few seconds but up to multiple days. Known
What Is Statistical Significance? Statistical significance is a determination made by an analyst that the results in the data are not explainable by chance alone. Statistical hypothesis testing is the method by which the analyst makes this determination. This test provides a p-value, which is the probability of observing results as extreme as those in the data, assuming
What Is Statistics? Statistics is a branch of applied mathematics that involves the collection, description, analysis, and inference of conclusions from quantitative data. The mathematical theories behind statistics rely heavily on differential and integral calculus, linear algebra, and probability theory. Statisticians, people who do statistics, are particularly concerned with determining how to draw reliable conclusions
What Is a Status Symbol? A status symbol is generally an object that signifies its owners’ high social and economic standing. Key Takeaways A status symbol is generally an object meant to signify its owners’ high social and economic standing.What serves as status symbols often changes as a culture and its values change.One’s vocation also
What Is the Statute of Frauds? The statute of frauds is a legal doctrine that requires certain types of contracts be in writing. The most common contracts covered by the statute of frauds includes the sale of land, agreements involving goods worth over $500, and contracts lasting one year or more. The purpose of the
What Is a Statute of Limitations? A statute of limitations is a law that sets the maximum amount of time that parties involved in a dispute have to initiate legal proceedings from the date of an alleged offense, whether civil or criminal. The length of time the statute allows for a victim to bring legal
