Tit For Tat

What is ‘Tit For Tat’ Tit for tat is a game theory mechanism subject to a payoff matrix similar to that of a prisoner’s dilemma. Tit for tat was introduced by Robert Axelrod, who developed a strategy in which each participant in an iterated prisoner’s dilemma follows a course of action consistent with his opponent’s … Read more

Petty Cash

What is ‘Petty Cash’ Petty cash, also referred to as the petty cash fund, is a small amount of cash on hand used for paying expenses deemed too small to write a check. Periodic reconciliations reveal shortfalls or overages in the fund, as receipts are used to calculate its balance. BREAKING DOWN ‘Petty Cash’ A … Read more

White Knight

What is ‘White Knight’ A white knight is an individual or company that acquires a corporation on the verge of being taken over by an unfriendly bidder/acquirer, otherwise known as a black knight. Although the target company does not remain independent, acquisition by a white knight is still preferred to a hostile takeover. Unlike a … Read more

E*TRADE Stock: Levels to Watch After Earnings

E*TRADE Financial Corporation (ETFC) reports second quarter earnings after Thursday’s closing bell, with analysts expecting the financial services giant to report profits of 88 cents per share on $707.8 million in revenues. If achieved, that would nearly match first quarter results during a period in which trading volume has contracted all across the market landscape, … Read more

Front-End Ratio

What is ‘Front-End Ratio’ The front-end ratio, also known as the mortgage-to-income ratio, is a ratio that indicates what portion of an individual’s income is allocated to mortgage payments. The front-end ratio is calculated by dividing an individual’s anticipated monthly mortgage payment by his/her monthly gross income.  The mortgage payment generally consists of principal, interest, … Read more

Deferred Charge

What is ‘Deferred Charge’ A deferred charge is a long-term prepaid expense that is carried as an asset on a balance sheet until used/consumed. Thereafter, it is classified as an expense within the current accounting period.  Deferred charges often stem from a business making payments for goods and services it has not yet received, such … Read more

The Top 5 IBM Shareholders

Founded in 1911 as the Computing-Tabulating-Recording Company (C-T-R), the origins of International Business Machines Corp. (IBM) can be traced back to the 1880s, when Dr. Alexander Dey invented the first dial recorder. Dey’s business later became one of the core foundations of C-T-R, along with Harlow Bundy’s Bundy Manufacturing Company, which produced the world’s first … Read more


What is ‘PV10’ PV10 is the present value of estimated future oil and gas revenues net of estimated direct expenses and discounted at an annual discount rate of 10%. Used primarily in the energy industry, PV10 is helpful in estimating the present value of a corporation’s proven oil and gas reserves. To calculate PV10, reservoir … Read more