What Does Half-Life Mean? The term half-life refers to the point at which half of the total principal of a debt obligation comes due or has been paid off. Also known as the average life, the half-life allows borrowers to determine the point at which they have fully paid half the principal. The half-life of
What Is the Half-Year Convention For Depreciation? The half-year convention for depreciation is the depreciation schedule that treats all property acquired during the year as being acquired exactly in the middle of the year. This means that only half of the full-year depreciation is allowed in the first year, while the remaining balance is deducted
What Was the Halloween Massacre? The Halloween Massacre refers to the Canadian government’s 2006 decision to tax all income trusts domiciled in Canada. On Halloween, Oct. 31, 2006, Canada’s then-minister of finance, Jim Flaherty, announced that all income trusts would be taxed similarly to corporations at a rate of over 30% on taxable income, causing
What Is the Halloween Strategy? The Halloween strategy, Halloween effect, or Halloween indicator is a market timing strategy based on the hypothesis that stocks perform better from Oct. 31 (Halloween) to May 1 than they do from the beginning of May through the end of October. The strategy posits that it is prudent to buy
What Is a Growth and Income Fund? A growth and income fund is class of mutual fund or exchange-traded fund (ETF) that has a dual strategy of both capital appreciation (growth) and current income generated through dividends or interest payments. A growth and income fund may invest only in equities or in a combination of stocks
What Is a Growth Industry? A growth industry is that sector of an economy which experiences a higher-than-average growth rate as compared to other sectors. Growth industries are often new or pioneer industries that did not exist in the past. Their growth is a result of demand for new products or services offered by companies
What Are Growth Rates? Growth rates refer to the percentage change of a specific variable within a specific time period. Growth rates can be positive or negative, depending on whether the size of the variable is increasing or decreasing over time. Growth rates were first used by biologists studying population sizes, but they have since
What Is Grunt Work? Grunt work is an expression used to describe thankless and menial work. Grunt work can also refer to jobs that either lack glamour and prestige or are boring and repetitive. In the context of the finance industry, grunt work could entail combing through a company’s financial records, looking for positive and
What Is the S&P GSCI? The S&P GSCI is a composite index of commodities that measures the performance of the commodities market. The index often serves as a benchmark for commodities investments. Investing in a GSCI fund provides a broadly diversified, unleveraged long-only position in commodity futures. The S&P GSCI was simply called the Goldman
What Is a Government-Sponsored Enterprise (GSE)? A government-sponsored enterprise (GSE) is a quasi-governmental entity established to enhance the flow of credit to specific sectors of the U.S. economy. Created by acts of Congress, these agencies—although they are privately-held—provide public financial services. GSEs help to facilitate borrowing for a variety of individuals, including students, farmers, and
