Logic dictates the long-term value of slow versus fast repeating products simply cannot match this fixed value.
FORBES: The Downside Of Marketing Mix Models Is There's No Upside For CMOs
More serious is that the price of homes or shares can fall, while debts are fixed in value.
However, a gold standard system can make available any amount of currency, as is appropriate given economic needs and the fixed parity value.
In September, he put in place capital controls and fixed the value of the Malaysian dollar, thus hoping to shield the currency from the ill effects of further stimulus.
So consumers who value fixed prices usually have to accept that firms may ration access to the good.
Bottom line: Money should be a fixed measure of value, just as an hour has 60 minutes, a foot has 12 inches and a pound has 16 ounces.
As long as they reinvest all the capital, their portfolio value remains fixed.
The term "Gross" means, that the value added includes the value of fixed capital consumed in the process of production.
Market participants will demand higher returns to compensate for rising prices that eat away the value of fixed-income investments over time.
In the case of a gold standard system, the policy target is to create a currency whose value is fixed to gold.
As with bonds, the coupon of a preferred stock is (typically) fixed, so the value of the stock may decline when rates rise.
FORBES: Do Preferred Stocks Deserve a Place in Your Portfolio?
This would be expected on a widespread basis, because the Terra would have a fixed, inflation proof value, due to its 100% commodity backing.
FORBES: Rethinking Money: The Rise Of Hayek's Private Competing Currencies
Whereas an old-style trust pays out only investment income (dividends and interest) to "income" beneficiaries, a TRU pays them a fixed percentage of its value annually--typically 3% to 5%.
Keep in mind that municipal securities are subject to a number of risks including, but not limited to: Interest Rate Risk, the risk that the market value of fixed-income securities may fluctuate when interest rates change, and Prepayment Risk, the risk that the issuers of individual securities may prepay them at a time when interest rates have declined.
FORBES: Put Intermediate Muni Funds In Your Portfolio's Rotation
Instead of paying out only investment income to current heirs, a total return unitrust pays a fixed percentage of its total value annually.
If categorized as a hurricane, residential policyholders would be subject to deductibles based on a percentage of property value instead of fixed rates.
FORBES: The Next Big Superstorm Sandy Story: Are We Really in Good Hands?
The idea of defining the value of the dollar in terms of the value of a fixed weight of gold is not a radical notion.
Eventually the falling dollar eroded the value of their fixed-rate mortgages.
Crucially, however, unlike the bank's shareholders, these creditors have no interest in the upside potential of a gamble for redemption: however that punt turns out, the most they can receive is the value of their fixed claim.
These plans pay out a fixed amount, regardless of the value of the pension fund.
FORBES: The Pension Benefit Guaranty Corporation's Real Crisis
Fees for registering property were reduced from 3% of the property value to a low fixed fee.
In deflation the nominal value of debts remains fixed even as nominal wages, prices and profits fall.
During the term, one or more individuals get an annual payout of a fixed percentage of the trust's value (say, 8% ).
In the longer term, the government hopes to persuade Congress to tax cigarettes and alcohol on their value, rather than a fixed sum per unit sold.
In fact, trailing data suggests that active Fixed Income Managers have provided a better value proposition (measured by alpha generated relative to fee paid) than Large Cap Equity managers.
FORBES: With Bond Yields So Low, Why Should You Pay More For Active Management?
This value is then added to the fixed rate to arrive at the overall earnings rate.
First, they must carry a pro rata profit actually earned by the fund, instead of a fixed return being tied up with their face value.
FORBES: Islamic Funds - Sharia Law and Investment Structures
But the nominal value of mortgage debts would remain fixed.
ECONOMIST: The deadly cocktail of high borrowing and falling prices
应用推荐