What is a Freeze Out? In its literal meaning, a freeze-out is an act of preventing someone from participating in an activity by being hostile to them or acting in a cruel or unfriendly manner. A trader can be freezed-out of trade in the market. A free-out is otherwise known as a squeeze-out. This action can be taken by a firms majority shareholders ...

What is Theta? Theta evaluates the value of the options price to the passing of time. This calculates the rate, at which the price of options is particularly in terms of time value, rises or decreases as the time to expire approaches. For example, if an option is worth $1.50 and it has a theta of 0.05, this means that in the next 24 hours the option...

What is a MAR Ratio? The Managed Account Reports Ratio, popularly known as the MAR Ratio, is a measurement of the return per unit of risk, and is used to compare performances of fund managers, commodity trading advisors and hedge funds. Risk is defined as the maximum drawdown, i.e. the most drawdown or loss experienced over the entire time period, s...

What is a Waterfall Concept? A waterfall concept in a clause or strategy used in life insurance policies that allow the child or grandchild of the policyholder to enjoy the policy. The waterfall concept means that a life insurance policy can rollover or be passed on by the policyholder to their child or grandchild. A waterfall concept is commonly us...

What are Countervailing Duties (CVDs)? Countervailing duties, another term for anti-subsidy tax and offset tariff, is a tariff that a Government issues (pursuant to World Trade Organization rules) to offset the benefit that exporters receive from subsidies paid by the foreign government.  The purpose of a foreign subsidy is to give the exporter an a...

What is a Freelance Economy? The freelance economy, or Gig Economy, is an economy of independent workers or individuals who are self-employed and execute different projects based on an agreed fee with the client.  Problems and Challenges of the Freelance Economy There are certain problems that have been attributed to the freelance economy, one of th...

What is a Proximate Cause? Proximate causation means that the harm suffered by the defendant was reasonably foreseeable as a result of the plaintiffs conduct.  When is Negligent Conduct the Proximate Cause of a Harm? For the type of injury to be foreseeable, the plaintiff must be one whom the defendant could reasonably expect to be injured by a negl...

Slide 2: The Business Team I strongly recommend using the second slide to introduce your business team. Investors are curious as to the background, skills, and qualifications of the business members. Remember, investors invest in people as much as businesses. This is your opportunity to demonstrate you personality and the drive that you have to make...

What are Electronic Contracts?  Electronic contracts are contract formed between individuals via electronic communications (such as email or via a website).  What are Terms of Agreement in Electronic Contracts?  As with traditional contracts, electronic contracts require a meeting of the minds. This must be expressed through an offer and acceptance ...

What is the Continuity Of Business Enterprise Doctrine? The continuity of business enterprise doctrine is a taxation principle in which an acquiring firm must continue the acquired firm's business before the acquisition can qualify as a tax-deferred reorganization. In cases where the acquired firm's business cannot be continued, a significant percen...