What Is the October Effect? The October effect is a perceived market anomaly that stocks tend to decline during the month of October. The October effect is considered to be more of a psychological expectation than an actual phenomenon, as most statistics go against the theory. Some investors may be nervous during October because some
What is an Odd Date? The odd date refers to the maturity date for a futures contract that does not fall exactly on a fixed term such as three months, but instead falls a few days earlier or later. This can be agreed upon in advance or result from the timing of a holiday such
What Is an Odd-Days Interest? Odd-days interest is the term used to describe interest due on a mortgage to cover an initial, partial month payment before regularly scheduled payments begin. The situation arises because most mortgages have payments scheduled to be due on the first of every month. However, mortgage closings may occur on any weekday during
What Is an Odd Lotter? An odd lotter is an individual or retail investor who buys securities (usually stocks) in odd lots or amounts that are not multiples of 100. An odd lotter differs from larger investors, who typically buy in round lots or multiples of 100. Key Takeaways Odd lotters are individual investors who
What Is Novation? Novation is the replacement of one of the parties in an agreement between two parties, with the consent of all three parties involved. To novate is to replace an old obligation with a new one. For example, a supplier who wants to relinquish a business customer might find another source for the
What Is the Nepalese Rupee (NPR)? The Nepalese rupee (NPR) is the national currency of Nepal. It is administered by the central bank of Nepal, the Nepal Rastra Bank. The most common symbol used when referencing the NPR is Rs, although Rp is also sometimes used. Key Takeaways The Nepalese rupee (NPR) is the national
What Is Net Present Value (NPV)? Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. NPV is used in capital budgeting and investment planning to analyze the profitability of a projected investment or project. NPV is the result
What Is the Net Present Value Of Growth Opportunities (NPVGO)? The net present value of growth opportunities (NPVGO) is a calculation of the net present value per share of all future cash flows involved with growth opportunities such as new projects or potential acquisitions. The net present value of growth opportunities is used to determine
What is the Net Present Value Rule? The net present value rule is the idea that company managers and investors should only invest in projects or engage in transactions that have a positive net present value (NPV). They should avoid investing in projects that have a negative net present value. It is a logical outgrowth of net present value
What Are 409A Plans? 409A Plans refer to a non-qualified deferred compensation has been earned by an employee but not yet received from their employer. Because the ownership of the compensation—which may be monetary or otherwise—has not been transferred to the employee, it is not yet part of the employee’s earned income and is not
