Warm Calling

Warm calling is the solicitation of a potential customer with whom a sales representative or their firm has had some prior contact. It refers to a sales call, a visit or an email that's preceded by some sort of contact with the prospect, such as a direct mail campaign, an introduction at a business event, or a referral.Warm calling is the opposite of cold calling, the solicitation of prospects who weren't anticipating such interaction and with whom the sales representative or business has not had prior contact.

Future Value

Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value is important to investors and financial planners, as they use it to estimate how much an investment made today will be worth in the future.Knowing the future value enables investors to make sound investment decisions based on their anticipated needs. However, external economic factors, such as inflation, can adversely affect the future value of the asset by eroding its value.Future value can be contrasted with present value (PV).

Maintenance Expenses

The term maintenance expense refers to any cost incurred by an individual or business to keep their assets in good working condition. These costs may be spent for the general maintenance of items like running anti-virus software on computer systems or they may be used for repairs such as fixing a car or machinery. These expenses are in addition to the actual purchase price of an asset, so individuals and companies should be able and willing to foot the bill in order to keep their assets in running order.

Keepwell Agreement

A keepwell agreement is a contract between a parent company and its subsidiary to maintain solvency and financial backing throughout the term set in the agreement. Keepwell agreements are also known as comfort letters.When a subsidiary finds itself in a cash crunch and has trouble accessing financing to continue its operations, it can sign a keepwell agreement with its parent company for a set period of time.Keepwell agreements not only help the subsidiary and its parent company, but they also boost confidence in shareholders and bondholders that the subsidiary will be able to meet its financial obligations and run smoothly. Suppliers that provide raw materials are also more likely to look at a troubled subsidiary more favorably if it has a keepwell agreement.

Notice Of Default

The term notice of default refers to a public notice filed with a court that states that the borrower of a mortgage is in default on a loan. The lender may file a notice of default when a mortgagor falls behind on their mortgage payments. Information on notices of default normally includes the borrower and lender's name and address, the legal address of the property, the nature of the default, as well as other pertinent details. A notice of default is often considered the first step toward foreclosure.

Default Risk

Default risk is the risk a lender takes that a borrower will not make the required payments on a debt obligation, such as a loan, a bond, or a credit card. Lenders and investors are exposed to default risk in virtually all forms of credit offerings. A higher level of default risk typically requires the borrower to pay a higher interest rate.

Grid Trading

Grid trading is when orders are placed above and below a set price, creating a grid of orders at incrementally increasing and decreasing prices. Grid trading is most commonly associated with the foreign exchange market. Overall the technique seeks to capitalize on normal price volatility in an asset by placing buy and sell orders at certain regular intervals above and below a predefined base price.For example, a forex trader could put buy orders every 15 pips above a set price, while also putting sell orders every 15 pips below that price. This takes advantages of trends. They could also place buy orders below a set price, and sell orders above. This takes advantages of ranging conditions.

Dynasty Trust

A dynasty trust is a long-term trust created to pass wealth from generation to generation without incurring transfer taxes—such as the gift tax, estate tax, or generation-skipping transfer tax (GSTT)—for as long as assets remain in the trust. The dynasty trust's defining characteristic is its duration. If properly designed, it can last for many generations.

Perfect Competition

The term perfect competition refers to a theoretical market structure. Although perfect competition rarely occurs in real-world markets, it provides a useful model for explaining how supply and demand affect prices and behavior in a market economy.Under perfect competition, there are many buyers and sellers, and prices reflect supply and demand. Companies earn just enough profit to stay in business and no more. If they were to earn excess profits, other companies would enter the market and drive profits down.

Fully Vested

Being fully vested means a person has rights to the full amount of some benefit, most commonly employee benefits such as stock options, profit sharing, or retirement benefits. Benefits that must be fully vested benefits often accrue to employees each year, but they only become the employee's property according to a vesting schedule.Vesting may occur on a gradual schedule, such as 25 percent per year, or on a "cliff" schedule where 100 percent of benefits vest at a set time, such as four years after the award date. Fully vested may be compared with partially vested.

Extrinsic Value

Extrinsic value measures the difference between the market price of an option, called the premium, and its intrinsic value. Extrinsic value is also the portion of the worth that has been assigned to an option by factors other than the underlying asset's price. The opposite of extrinsic value is intrinsic value, which is the inherent worth of an option.

Exogenous Growth

Exogenous growth, a key tenet of neoclassical economic theory, states that economic growth is fueled by technological progress independent of economic forces.