Renaissance for LEADERS

Peak Performance Resources for Leaders by Leaders

Category: Money & Wealth


1. The exchange of goods or services for an amount of money or its equivalent; the act of selling. 2. A selling of property to the highest bidder; an auction. 3. An offer or arrangement in which goods are sold at a discount: The store has a sale on winter coats. 3. The business or activity of selling goods or services: She works in sales. 4. The number of items sold or the amount of money received for a number of items sold.


1. Rescue from harm, danger, or loss: save, preserve. 2. Avoidance of excess expenditure; economy, thrift. 3. A reduction in expenditure or cost. 4. Something saved. 5. Money saved for future use.


1. The state of being scarce or in short supply; shortage, dearth, paucity. 2. An economic principle where resources are limited and human needs are insatiable. Even with technological advances, there are never enough resources to satisfy the ever-increasing demand, therefore, sacrifice requires giving up something, or making tradeoffs in order to obtain more of what is wanted. Competition for scarce resources is driven by the market, where prices are one way to allocate scarce resources. The tension between available resources and the money to pay for them drives people to compete to make money. Both money and time are scarce resources. Most people have too little of one, the other, or both. An unemployed person may have an abundance of time and find it difficult to pay rent. A successful executive may be financially capable of retiring whenever they want, yet eat five-minute lunches and work 20 hours a day! Other people have very little time or money. The ideal is to have an abundance of time and money, however very few people achieve it.


The process of converting an asset or pool of assets (or debt) into marketable securities in order to sell them to investors. The value and cash flows of the new security (financial instrument) are based on the underlying value and cash flows of the assets. Companies will securitize illiquid assets in order to increase their overall liquidity and generate immediate proceeds from their assets.


1. A financing or investment instrument issued by a company or government agency that denotes an ownership interest and provides evidence of a debt, a right to share in the earnings of the issuer, or a right in the distribution of a property. 2. An asset pledged to guaranty the repayment of a loan, satisfaction of an obligation, or in compliance with an agreement.


1. A sole proprietor or partner in a partnership to whom the legal requirements under a contract of employment do not apply. He or she may employ others. These individuals obtain their own work or sales and pay their own expenses. 2. The process of earning a living through using one’s own capital, knowledge, intelligence, efficiency and taking a risk.


The act of trading an asset or conducting a financial transaction with a significant risk of losing most or all of its value with the expectation of a substantial gain. The risk of loss is more than offset by the possibility of a huge gain, otherwise, there would be very little motivation to speculate. To determine if an activity qualifies as speculative or investing can depend on the nature of the asset, holding period, and the amount of leverage.


The ownership of a corporation is partitioned into shares. A business may declare different types (or classes) of shares, each having distinctive ownership rules, privileges, or share values. Common stock typically has voting rights that can be exercised in corporate decisions. Preferred stock typically does not have voting rights but is legally entitled to receive a certain level of dividend payments before any dividends can be issued to other shareholders. Convertible preferred stock is preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Additional shares may subsequently be authorized by the existing shareholders and issued by the company. Ownership of shares may be documented by issuance of a stock certificate. A stock certificate is a legal document that specifies the number of shares owned by the shareholder, and other specifics of the shares, such as the par value if any or the class of the shares.

Sunk Cost

1. A past outlay or loss that cannot be altered by current or future actions. 2. A cost that has already been incurred and cannot be recovered. Differs from future costs, such as decisions about inventory purchase costs or product pricing. they are excluded from future decisions because the cost will be the same regardless of the outcome of a decision.

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