What Is a Solvency Ratio? A solvency ratio is a key metric used to measure an enterprise’s ability to meet its long-term debt obligations and is used often by prospective business lenders. A solvency ratio indicates whether a company’s cash flow is sufficient to meet its long-term liabilities and thus is a measure of its
What Is the System Open Market Account? The System Open Market Account (SOMA) is managed by the Federal Reserve Bank and contains assets acquired through operations in the open market. The assets in the SOMA serve as a management tool for the Federal Reserve’s assets, a store of liquidity to be used in an emergency
What Is the Sterling Overnight Interbank Average Rate (SONIA)? The Sterling Overnight Index Average, abbreviated SONIA, is the effective overnight interest rate paid by banks for unsecured transactions in the British sterling market. It is used for overnight funding for trades that occur in off-hours and represents the depth of overnight business in the marketplace.
What is a Sophisticated Investor? A sophisticated investor is a classification of investor indicating someone who has sufficient capital, experience and net worth to engage in more advanced types of investment opportunities. Key Takeaways Sophisticated investors are investors who have a high net-worth and extensive experience in financial markets.There is no single correct definition of
What Is a Social Enterprise? A social enterprise or social business is defined as a business with specific social objectives that serve its primary purpose. Social enterprises seek to maximize profits while maximizing benefits to society and the environment, and the profits are principally used to fund social programs. Key Takeaways A social enterprise is
What Is a Social Entrepreneur? A social entrepreneur is a person who pursues novel applications that have the potential to solve community-based problems. These individuals are willing to take on the risk and effort to create positive changes in society through their initiatives. Social entrepreneurs may believe that this practice is a way to connect you
What Is Social Identity? Social identity is an organization or company’s image as derived from its relationships with its customers, suppliers, shareholders, and other stakeholders. An organization’s social identity thus comes from the groups that the organization belongs to or is affiliated with, the way it is structured, the industry it belongs to, and other
What Is a Social Impact Bond (SIB)? A social impact bond (SIB) is a contract with the public sector or governing authority, whereby it pays for better social outcomes in certain areas and passes on part of the savings achieved to investors. A social impact bond is not a bond, per se, since repayment and
What Is a Social Impact Statement? A social impact statement—also known as corporate social responsibility (CSR) statement—is a report or press release issued by a company that outlines the steps it has taken to improve the social and environmental standards of its business operations. Many companies will issue these statements once per year, releasing them
What Is Socialism? Socialism is a populist economic and political system based on collective, common, or public ownership of the means of production. Those means of production include the machinery, tools, and factories used to produce goods that aim to directly satisfy human needs. In contrast to capitalism, whereby business owners control the means of
