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What Is Pooling-of-Interests? Pooling-of-interests was a method of accounting that governed how the balance sheets of two companies were added together during an acquisition or merger. The Financial Accounting Standards Board (FASB) issued Statement No. 141 in 2001, ending the usage of the pooling-of-interests method. The FASB then designated only one method—purchase accounting—to account for

What Is Poop and Scoop? “Poop and scoop” occurs when a small group of informed people attempts to drive down a stock’s price by spreading false information, rumors, and otherwise damaging information (“poop”) in order to then buy the stock at a lower price (“scoop”). If they are successful, they can purchase the stock at

What Is Population? A population is the complete set group of individuals, whether that group comprises a nation or a group of people with a common characteristic. In statistics, a population is the pool of individuals from which a statistical sample is drawn for a study. Thus, any selection of individuals grouped by a common

What Is a Pop-Up Option? A pop-up option is a joint and survivor annuity or pension option, generally limited to married couples, that is triggered if the annuitant or pension plan member’s spouse predeceases the plan member. The pop-up option then boosts the plan member’s pension after the spouse’s death. The increase in the pension

What Is Pork Barrel Politics? Pork-barrel politics is the legislator’s practice of slipping funding for a local project into a budget. The project may have nothing to do with the bill and may benefit only the legislator’s home district. Before a bill gets to a vote, pork-barreling has often greatly inflated its costs through the

What Is Portability? Portability refers to an employee’s option to retain certain benefits when switching employers. Some pension plans and health insurance have portability. Most 401(k) plans also have portability of benefits, as do health savings accounts (HSAs). Key Takeaways Portability is the option to move certain employee benefits along with you if you change

What Is the Portable Alpha Strategy? The portable alpha strategy focuses on investing in stocks or other assets that have demonstrated little or no correlation with the markets. To do this, investors separate alpha from beta by investing in securities that are not in the market index from which their beta is derived. Key Takeaways

What Is a Plain Vanilla Swap? A plain vanilla swap is one of the simplest financial instruments contracted in the over-the-counter market between two private parties, both of which are usually firms or financial institutions. There are several types of plain vanilla swaps, including an interest rate swap, commodity swap, and a foreign currency swap.

What Is a Plan Administrator? A plan administrator is a person or company responsible for managing a retirement fund or a pension plan on behalf of its participants and beneficiaries. The plan administrator is tasked with ensuring the funds are properly collected and distributed to all qualified participants. In terms of fiduciary duty, the plan

What Is a Public Limited Company (PLC)? A public limited company (PLC) is a public company in the United Kingdom. PLC is the equivalent of a U.S. publicly traded company that carries the Inc. or corporation designation. The use of the PLC abbreviation after the name of a company is mandatory and communicates to investors