Compound Interest
Interest calculated cumulatively so that its value increases over the years, calculated based on the total amount representing the original invested principal plus previously earned interest.
Interest
The amount borrowers pay to lenders as compensation for using their money to finance investment of various types or personal consumption. The interest paid represents the lenders’ opportunity cost for not using their money at present and for bearing the risks of lending money.
The collective mind
It is a virtual mind formed by the combined minds of the public, united by a single goal: making profits. It thinks only about profits, so its thinking is irrational—driven solely by greed to make more profits or by fear of losing those profits.
Futures Contract
An agreement to buy or sell an asset on a specified future date at a price agreed upon today. A futures contract differs from a forward contract in that it is a standardized contract with specific specifications, and can therefore be traded on an exchange.
Forward contract
A derivative contract that creates a legally binding obligation between two parties, whereby one party commits to buy a predetermined amount of an asset and the other commits to sell it at a predetermined price and on a predetermined future date. Since forward contracts are negotiated individually, they are not traded on derivatives exchanges.
Independent Member
In the Financial Market Institutions Regulations, an independent member is a non-executive board member who enjoys complete independence in their position and decisions, and to whom none of the impediments to independence stipulated in paragraph (c) of Article Fifty-Three of the Financial Market Institutions Regulations apply.
Partial offer
An offer (excluding offers made by the offeree company itself) subject to the Merger and Acquisition Regulations, made to all holders of voting shares in the offeree company for the purpose of acquiring a stake in the voting shares of the offeree company.
Offer
In the “Merger and Acquisition Regulations,” it means any public offer, excluding offers made by the target company itself, subject to the provisions of the “Merger and Acquisition Regulations,” and submitted to all holders of shares with voting rights in the target company, for either of the following two purposes:
Down payment
An amount taken upon signing the contract, considered part of the price upon execution of the contract, and as compensation if the contract is terminated.
Return on Invested Capital
An amount expressed as a percentage earned from investing the company’s entire capital (common and preferred shares plus its long-term funded debt)