What Is a Strategic Default? A strategic default is a deliberate decision by a borrower to stop making payments on a debt. The decision is made by the debtor, not the lender. The strategic default option is sometimes chosen by mortgage holders of residential or commercial property who have analyzed the costs and benefits of
What Is Strategic Gap Analysis? Strategic gap analysis is a business management technique that requires an evaluation of the difference between a business endeavor’s best possible outcome and the actual outcome. It includes recommendations on steps that can be taken to close the gap. Strategic gap analysis aims to determine what specific steps a company
What Is Strategic Management? Strategic management is the management of an organization’s resources to achieve its goals and objectives. Strategic management involves setting objectives, analyzing the competitive environment, analyzing the internal organization, evaluating strategies, and ensuring that management rolls out the strategies across the organization. Key Takeaways Companies, universities, nonprofits, and other organizations can use
What Is a Stretch Annuity? A stretch annuity (also known as a legacy annuity) is an annuity option where tax-deferred allowances are passed on to the beneficiaries, offering them more flexibility and control over maintaining the investment. The beneficiary thus has fewer restraints on wealth transfer, and he or she is able to receive a
What Is or Was a Stretch IRA? The stretch IRA was an estate planning strategy that formerly allowed owners of Individual Retirement Accounts (IRAs) to pass along the assets in the account from one generation to the next while taking advantage of prolonged tax-deferred growth of the assets. The strategy was essentially disallowed in 2019
What Is a Strike Price? Options contracts are derivatives that give the holders the right, but not the obligation, to buy or sell some underlying security at some point in the future at a pre-specified price. This price is known as the option’s strike price (or exercise price). For call options, the strike price is
What Is a Strip? A strip is a bond coupon that has been removed from the bond so that the two parts can be sold separately, as an interest-paying coupon bond and as a zero-coupon bond. This process is handled by the brokerage or other financial institution that sells the products. A strip is also
What Is a Stock Exchange-Traded Fund (ETF)? The term stock exchange-traded fund (ETF) refers to a security that tracks a particular set of equities. These ETFs trade on exchanges the same way normal stocks do and track equities just like an index. They can track stocks in a single industry or an entire index of
What Is Stock-for-Stock? Stock-for-stock is a type of compensation deal between two companies in which stock is partly used toward the cost of acquisition. A set number of shares of one company are swapped with the shares of another as a way of covering costs. Stock swaps also occur in employee stock compensation programs, in
What Is a Stock Keeping Unit (SKU)? A stock-keeping unit (SKU) is a scannable bar code, most often seen printed on product labels in a retail store. The label allows vendors to automatically track the movement of inventory. The SKU is composed of an alphanumeric combination of eight-or-so characters. The characters make up a code
