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Skin In The Game
To have "skin in the game" is to have incurred risk (monetary or otherwise) by being involved in achieving a goal. In the phrase, "skin" refers to an investment (literal or figurative), and "game" is the metaphor for actions on the field of play under discussion. The aphorism is particularly common in business, finance, and gambling, and is also used in politics. Etymology The origin of the phrase is uncertain but may have originated from golf skins games played at IBM in the 1980s. It has commonly been attributed to Warren Buffett, referring to his own investment in his initial fund. However, William Safire disputes that Buffett is the source of the phrase, pointing to earlier instances. In business and finance The term is used to ask or convey an owner(s) or principals undefined but significant equity stake in an investment vehicle where outside investors are solicited to invest. The theory is that principal's equity contribution is directly related to the stability of th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Risk
In simple terms, risk is the possibility of something bad happening. Risk involves uncertainty about the effects/implications of an activity with respect to something that humans value (such as health, well-being, wealth, property or the environment), often focusing on negative, undesirable consequences. Many different definitions have been proposed. One ISO standard, international standard definition of risk is the "effect of uncertainty on objectives". The understanding of risk, the methods of assessment and management, the descriptions of risk and even the definitions of risk differ in different practice areas (business, economics, Environmental science, environment, finance, information technology, health, insurance, safety, security, security, privacy, etc). This article provides links to more detailed articles on these areas. The international standard for risk management, ISO 31000, provides principles and general guidelines on managing risks faced by organizations. Defi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Hedge Funds
A hedge fund is a pooled investment fund that holds liquid assets and that makes use of complex trading and risk management techniques to aim to improve investment performance and insulate returns from market risk. Among these portfolio techniques are short selling and the use of leverage and derivative instruments. In the United States, financial regulations require that hedge funds be marketed only to institutional investors and high-net-worth individuals. Hedge funds are considered alternative investments. Their ability to use leverage and more complex investment techniques distinguishes them from regulated investment funds available to the retail market, commonly known as mutual funds and ETFs. They are also considered distinct from private equity funds and other similar closed-end funds as hedge funds generally invest in relatively liquid assets and are usually open-ended. This means they typically allow investors to invest and withdraw capital periodically based on ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Business Terms
Business is the practice of making one's living or making money by producing or buying and selling products (such as goods and services). It is also "any activity or enterprise entered into for profit." A business entity is not necessarily separate from the owner and the creditors can hold the owner liable for debts the business has acquired except for limited liability company. The taxation system for businesses is different from that of the corporates. A business structure does not allow for corporate tax rates. The proprietor is personally taxed on all income from the business. A distinction is made in law and public offices between the term business and a company (such as a corporation or cooperative). Colloquially, the terms are used interchangeably. Corporations are distinct from sole proprietors and partnerships. Corporations are separate and unique legal entities from their shareholders; as such they provide limited liability for their owners and members. Cor ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economics Catchphrases
Economics () is a behavioral science that studies the production, distribution, and consumption of goods and services. Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics analyses what is viewed as basic elements within economies, including individual agents and markets, their interactions, and the outcomes of interactions. Individual agents may include, for example, households, firms, buyers, and sellers. Macroeconomics analyses economies as systems where production, distribution, consumption, savings, and investment expenditure interact; and the factors of production affecting them, such as: labour, capital, land, and enterprise, inflation, economic growth, and public policies that impact these elements. It also seeks to analyse and describe the global economy. Other broad distinctions within economics include those between positive economics, describing "what is", and normative economics, advocatin ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Hidden Asymmetries In Daily Life
Hidden or The Hidden may refer to: Film and television Film * ''The Hidden'' (1987 film), an American science fiction/horror film * ''Hidden'' (2005 film) or ''Caché'', a French thriller film * ''The Hidden'' (2005 film), a Spanish-British-Italian psychological thriller film * ''Hidden'' (2009 film), a Norwegian horror film * ''Hidden 3D'', a 2011 Italian-Canadian horror film * ''Hidden'' (2015 film), an American psychological thriller film Television * ''Hidden'' (2011 TV series), a British political drama series * ''Hidden'' (2018 TV series), a Welsh/English bilingual police drama series * "Hidden" (''The 4400''), an episode * "Hidden" (''Smallville''), an episode * "The Hidden" (''The Penguins of Madagascar''), an episode Literature * ''Hidden'' (''Torchwood''), a 2008 audiobook based on the TV series ''Torchwood'' * ''Hidden'', a 2012 ''House of Night'' novel by P. C. Cast and Kristin Cast * ''The Hidden'' (Animorphs novel), a 2000 ''Animorphs'' novel * ''The Hidd ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Principal–agent Problem
The principal–agent problem refers to the conflict in interests and priorities that arises when one person or entity (the " agent") takes actions on behalf of another person or entity (the " principal"). The problem worsens when there is a greater discrepancy of interests and information between the principal and agent, as well as when the principal lacks the means to punish the agent. The deviation from the principal's interest by the agent is called " agency costs".''Pay Without Performance'', Lucian Bebchuk and Jesse Fried, Harvard University Press 2004preface and introduction) Common examples of this relationship include corporate management (agent) and shareholders (principal), elected officials (agent) and citizens (principal), or brokers (agent) and markets (buyers and sellers, principals). In all these cases, the principal has to be concerned with whether the agent is acting in the best interest of the principal. Principal-agent models typically either examine moral ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Skin In The Game (book)
''Skin in the Game: Hidden Asymmetries in Daily Life'' (acronymed: SITG) is a 2018 nonfiction book by Nassim Nicholas Taleb, a former options trader with a background in the mathematics of probability and statistics. Taleb's thesis is that skin in the game—i.e., having a shared risk when taking a major decision—is necessary for fairness, commercial efficiency, and risk management, as well as being necessary to understand the world. The book is part of Taleb's multi-volume philosophical essay on uncertainty, titled the '' Incerto'', which also includes '' Fooled by Randomness'' (2001), '' The Black Swan'' (2007–2010), '' The Bed of Procrustes'' (2010–2016), and '' Antifragile'' (2012). The book is dedicated to "two men of courage": Ron Paul, "a Roman among Greeks"; and Ralph Nader, "Greco-Phoenician saint". Asymmetry and missing incentives If an actor pockets some rewards from a policy they enact or support without accepting any of the risks, economists consider it to b ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Eating Your Own Dog Food
Eating your own dog food or "dogfooding" is the practice of using one's own products or services. This can be a way for an organization to test its products in real-world usage using product management techniques. Hence dogfooding can act as quality control, and eventually a kind of testimonial advertising. Once in the market, dogfooding can demonstrate developers' confidence in their own products. Origin of the term In 2006, Warren Harrison, the Editor-in-Chief of ''IEEE Software'' recounted that in the 1970s television advertisements for Alpo dog food, spokesperson and actor Lorne Greene pointed out that he fed Alpo to his own dogs. Another possible origin he remembered was that the president of Kal Kan Pet Food was said to eat a can of his dog food at annual shareholders' meetings. In 1988, Microsoft manager Paul Maritz sent Brian Valentine, test manager for Microsoft LAN Manager, an email titled "Eating our own Dogfood", challenging him to increase internal usage of th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Mutual Fund
A mutual fund is an investment fund that pools money from many investors to purchase Security (finance), securities. The term is typically used in the United States, Canada, and India, while similar structures across the globe include the SICAV in Europe ('investment company with variable capital'), and the open-ended investment company (OEIC) in the UK. Mutual funds are often classified by their principal investments: money market funds, bond fund, bond or fixed income funds, stock fund, stock or equity funds, or hybrid funds. Funds may also be categorized as index funds, which are passively managed funds that track the performance of an index, such as a stock market index or bond market index, or actively managed funds, which seek to outperform stock market indices but generally charge higher fees. The primary structures of mutual funds are open-end funds, closed-end funds, and unit investment trusts. Over long durations, passively managed funds consistently outperform actively m ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Trusts
A trust is a legal relationship in which the owner of property, or any transferable right, gives it to another to manage and use solely for the benefit of a designated person. In the English common law, the party who entrusts the property is known as the " settlor", the party to whom it is entrusted is known as the "trustee", the party for whose benefit the property is entrusted is known as the "beneficiary", and the entrusted property is known as the "corpus" or "trust property". A '' testamentary trust'' is an irrevocable trust established and funded pursuant to the terms of a deceased person's will. An inter vivos trust is a trust created during the settlor's life. The trustee is the legal owner of the assets held in trust on behalf of the trust and its beneficiaries. The beneficiaries are equitable owners of the trust property. Trustees have a fiduciary duty to manage the trust for the benefit of the equitable owners. Trustees must provide regular accountings of trust inc ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Private Equity
Private equity (PE) is stock in a private company that does not offer stock to the general public; instead it is offered to specialized investment funds and limited partnerships that take an active role in the management and structuring of the companies. In casual usage "private equity" can refer to these investment firms rather than the companies in which they invest. Private-equity capital (economics), capital is invested into a target company either by an investment management company (private equity firm), a venture capital fund, or an angel investor; each category of investor has specific financial goals, management preferences, and investment strategies for profiting from their investments. Private equity can provide working capital to finance a target company's expansion, including the development of new products and services, operational restructuring, management changes, and shifts in ownership and control. As a financial product, a private-equity fund is private capital ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
MF Global
MF Global Holdings Ltd., formerly known as Man Financial, was a major global financial derivatives broker, or commodities brokerage firm that went bankrupt in 2011. MF Global provided exchange-traded derivatives, such as futures and options as well as over-the-counter products such as contracts for difference (CFDs), foreign exchange and spread betting. MF Global Inc., its broker-dealer subsidiary, was a primary dealer in United States Treasury securities. A series of perceived liquidity problems and large fines and penalties dogged MF Global starting in 2008, and led to its bankruptcy in 2011. In 2011, MF Global faced major pressures to its liquidity over several months. Some analysts and financial commentators indicate that MF Global probably experienced a number of trading days in 2011 during which the firm's bets on sovereign debt would have required the use of customer funds to meet capital requirements, thereby maintaining operating funds and possibly overall ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
