What Are Extraordinary Repairs? Extraordinary repairs, in the field of accounting, are extensive repairs made to an asset, such as property or equipment (PP&E), which prolongs its useful life and increases its book value. This may be set in contrast to ordinary repairs, which are considered to be normal and preventive maintenance. Ordinary repairs are
What is Extrinsic Value? Extrinsic value measures the difference between the market price of an option, called the premium, and its intrinsic value. Extrinsic value is also the portion of the worth that has been assigned to an option by factors other than the underlying asset’s price. The opposite of extrinsic value is intrinsic value, which is the
What Is Ex Works (EXW)? Ex Works (EXW) is an international trade term that describes when a seller makes a product available at a designated location, and the buyer of the product must cover the transport costs. Ex Works (EXW) is one of the 11 current Incoterms (International Commercial Terms), a set of standardized international trade terms published by the
What Is Ex-Warrant? Ex-warrant describes a condition when a warrant is not passed on to the buyer as part of buying another security. In this case, the seller of a security that has (had) warrants attached would keep the warrants, rather than the warrants being passed to the buyer. Warrants can be bought and sold, and are
What Is Inelastic Demand? “Inelastic” is an economic term referring to the static quantity of a good or service when its price changes. Inelastic demand means that when the price goes up, consumers’ buying habits stay about the same, and when the price goes down, consumers’ buying habits also remain unchanged. Key Takeaways “Inelastic refers” to the static
What Is the 1913 Federal Reserve Act? The 1913 Federal Reserve Act is legislation in the United States that created the Federal Reserve System. Congress passed the Federal Reserve Act to establish economic stability in the U.S. by introducing a central bank to oversee monetary policy. Key Takeaways The 1913 Federal Reserve Act created the Federal Reserve System, known simply
What Are FAAMG Stocks? FAAMG is an abbreviation coined by Goldman Sachs for five top-performing tech stocks in the market, namely, Meta (formerly Facebook), Amazon, Apple, Microsoft, and Alphabet’s Google. FAAMG may also go by the acronym, GAFAM. FAAMG originated from the original acronym FANG, which was coined by CNBC’s Jim Cramer. FANG did not include Apple
What Are FAANG Stocks? In finance, “FAANG” is an acronym that refers to the stocks of five prominent American technology companies: Meta (META) (formerly known as Facebook), Amazon (AMZN), Apple (AAPL), Netflix (NFLX); and Alphabet (GOOG) (formerly known as Google). The term was popularized by Jim Cramer, the television host of CNBC’s Mad Money, in
What Is a Fabless Company? The term “fabless company” refers to a company that designs and markets hardware while outsourcing the manufacturing of that hardware to a third-party partner. The term is commonly used in relation to advanced chip designers, who hold the intellectual property (IP) for the chips they sell. Famous examples include Apple
What Is a Face-Amount Certificate Company? A face-amount certificate company is a type of corporation that raises money by issuing investors debt securities of a specified value. These instruments, called face-amount certificates (FACs), are backed by a security interest. In other words, the company offers up its assets such as the real property it owns or
