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Yearly Renewable Term (YRT): What It Is and How It Works Yearly Renewable Term (YRT) is a term life insurance policy that provides one year of coverage at a time. The death benefit remains the same year to year, but the premium is recalculated annually based on the insured’s current age. YRT effectively functions as…

Yearly Rate of Return Method An annual (annualized) return measures the average yearly growth of an investment over a specified period. Unlike a simple return, the annualized return represents the geometric mean and reflects the effect of compounding. It’s commonly used to compare the performance of liquid investments such as stocks, bonds, mutual funds, and…

Yearly Probability of Living: Meaning and Use The yearly probability of living measures the likelihood that a person (or group) who is alive at the start of a year will still be alive at the end of that year. It is a fundamental statistic in demography and an essential input for life-insurance underwriting and other…

Yearly Probability of Dying The yearly probability of dying is a statistical estimate of the likelihood that an individual will die within the next 12 months. It’s derived from mortality (actuarial or life) tables, which summarize death rates for groups defined by age, sex and sometimes other factors. How it’s estimated Mortality tables calculate the…

Year to Date (YTD): What It Means and How to Use It Year-to-date (YTD) measures performance from the start of a specified year (calendar or fiscal) through a given date in that same year. It’s widely used to track investment returns, company results, and personal earnings without waiting for year-end figures. Definition YTD expresses the…

Year-Over-Year (YOY): Meaning, How It Works, and When to Use It What is YOY? Year-over-year (YOY) compares a metric for one period with the same period one year earlier. It’s a common way to assess whether financial performance—or economic indicators—are improving, worsening, or staying the same while controlling for seasonal effects. How YOY Works Compare…

Year-End Bonus A year-end bonus is additional compensation employers pay employees at the end of a calendar or fiscal year. It’s typically a reward for performance, meeting targets, or as part of hiring and retention incentives. Bonuses can be paid in cash or other forms such as stock, extra paid time off, or gifts. Key…

Yard (Financial Slang for One Billion) Key takeaways “Yard” is financial slang meaning one billion (1,000,000,000 or 10^9). The term likely derives from the British “milliard.” It’s most commonly used in currency (FX) trading to avoid confusion with million or trillion. Widespread use declined with the shift from open-outcry to electronic trading, but it persists…

Yankee Market: Meaning and How It Works What is the Yankee market? “Yankee market” is a slang term used mainly by non-U.S. residents to refer to the U.S. stock and capital markets. Relatedly, a “Yankee bond” is a debt security issued by a foreign company or bank but sold in the United States and denominated…

Yankee Certificate of Deposit (CD) A Yankee CD is a U.S.-dollar denominated certificate of deposit issued in the United States by a branch of a foreign bank. Foreign banks use Yankee CDs to raise dollar funding from U.S. depositors. They operate much like traditional CDs but have characteristics that make them primarily suitable for larger,…

Yankee Certificate of Deposit (CD): What It Is and How It Works Key takeaways A Yankee CD is a U.S. dollar–denominated certificate of deposit issued in the United States by a branch of a foreign bank. They are typically marketed to larger investors, with minimum face values often around $100,000. Yankee CDs usually have short…

Yankee Bond At a glance A Yankee bond is a debt security issued in the United States by a foreign government, bank, or corporation and denominated in U.S. dollars. It is subject to U.S. securities laws and must be registered with the Securities and Exchange Commission (Securities Act of 1933). Issuers can access a larger,…

Yale School of Management Yale School of Management (Yale SOM) is the graduate business school of Yale University, located in New Haven, Connecticut. Known for integrating business education with broader societal and ethical concerns, Yale SOM emphasizes global perspective, interdisciplinary collaboration, and leadership across public, private, and nonprofit sectors. Mission Yale SOM’s mission centers on…

Yacht Insurance Yacht insurance protects owners of larger recreational vessels from financial loss caused by damage to the vessel, liability to others, and certain maritime-specific exposures. Policies are broader and more specialized than standard boat insurance because yachts typically travel farther and face greater risks. Key takeaways * Yacht insurance covers hull damage and liability…

Y2K Explained: The Year 2000 Computer Bug Key takeaways Y2K (the “Millennium Bug”) was a programming issue where years were stored with two digits (e.g., 99 instead of 1999), raising concerns that systems would misinterpret 2000 as 1900. Massive global remediation efforts—hardware upgrades, code fixes, testing and contingency planning—largely prevented major failures. Estimated worldwide remediation…

Y-Share: What it Is and How It Works What is a Y-share? A Y-share is an institutional share class offered by open-end mutual funds. It’s designed for institutional investors and large retirement pools, featuring higher minimum investments and lower ongoing costs than many retail share classes. Key features: * Institutional share class for mutual funds….

Y: What it Means, How It Works, Examples Overview The letter “Y” appended to a U.S. stock ticker indicates the security is an American Depositary Receipt (ADR). ADRs are negotiable certificates issued by a U.S. depositary bank that represent shares of a foreign company and trade in U.S. markets like other securities. Key points “Y”…

XRT: What It Means, How It Works, and the Function of Rights Key takeaways * XRT appended to a ticker (e.g., ABC.XRT) indicates the stock is trading ex-rights — the attached rights have expired. * Rights give existing shareholders a short-term opportunity to buy newly issued shares at a set (usually discounted) price. * When…

Xetra: Overview, Features, and How It Compares to Other Electronic Trading Systems Key takeaways * Xetra is an electronic trading platform operated by Deutsche Börse Group, headquartered in Frankfurt. * Launched in 1997, Xetra handles more than 90% of share trading in Germany and roughly 30% of ETF trading in continental Europe. * It trades…

Xenocurrency Definition A xenocurrency is any currency that is deposited, traded, or used in markets outside its country of origin. The term comes from the Greek prefix “xeno,” meaning “foreign.” In modern usage, “foreign currency” or “eurocurrency” are more commonly used terms. Key takeaways Xenocurrencies are non‑domestic currencies held, traded, or accepted outside their home…

XD: What it is, how it works, and special rules What “XD” means XD is a qualifier that appears as a footnote, suffix, or subscript next to a ticker symbol to indicate the stock is trading ex-dividend. That means the most recent dividend has been allocated to the seller, and anyone who buys the stock…

XCD (Eastern Caribbean Dollar) What is the XCD? The XCD is the ISO currency code for the Eastern Caribbean dollar, the official currency used by several countries in the Eastern Caribbean. It is divided into 100 cents. Where it’s used The Eastern Caribbean dollar is the shared legal tender of eight island states: * Anguilla…

eXtensible Business Reporting Language (XBRL) eXtensible Business Reporting Language (XBRL) is a freely available, global software standard for exchanging business and financial information. Built on XML (extensible markup language), XBRL uses standardized tags to identify individual pieces of financial data so they can be read and processed automatically by XBRL-compatible programs. How it works Each…

X‑Mark Signature What it is An X‑mark signature is a simple mark—often an “X” or other illegible sign—made by a person in place of a handwritten name when they cannot sign their full name. Common reasons include illiteracy, physical disability, injury, or other conditions that prevent forming a conventional signature. To be legally effective, marks…

X-Efficiency Definition X-efficiency describes how effectively a firm converts inputs into outputs under imperfect competition. It captures the gap between actual performance and the firm’s potential best performance given available technology and resources. High x-efficiency means a firm is close to that potential; low x-efficiency indicates slack, wasted resources, or low effort. What it explains…

Wrongful Termination Claim: Meaning, Types, and How to File What is a wrongful termination claim? A wrongful termination claim is a legal action an employee brings against an employer who they believe fired them unlawfully. Claims typically allege violations of federal or state statutes (for example, anti‑discrimination, whistleblower, or labor laws) or breaches of an…

Wrongful Dishonor: Meaning and Legal Basis Wrongful dishonor occurs when a bank refuses to pay a valid negotiable instrument—such as a check or draft—presented for payment, even though the instrument is properly payable and the customer’s account covers it. Such refusals can violate the Uniform Commercial Code (UCC), which governs negotiable instruments. How it works…

Written Premium Definition Written premium is the total amount of insurance premium recorded for policies issued by a company during a specific accounting period. It represents the premiums customers are contractually required to pay once a policy becomes effective, regardless of how much of that premium has been earned over time. Written premiums are a…

Written-Down Value (WDV) Definition Written-down value (WDV), also called book value or net book value, is an asset’s carrying amount on the balance sheet after subtracting accumulated depreciation (for tangible assets) or accumulated amortization (for intangible assets) from its original cost. WDV = Original cost − Accumulated depreciation (or amortization) Explore More Resources › Read…

Writing an Option Key takeaways * Writing an option means selling an option contract and collecting a premium in exchange for obligating yourself to buy or sell the underlying asset at a specified strike price by the option’s expiration. * Standard stock options are typically written in lots of 100 shares. * Premium size depends…

Option Writer: Overview of Long and Short Strategies What is an option writer? An option writer (or grantor) is the seller of an option contract. The writer receives an upfront premium from the buyer in exchange for granting the buyer the right — but not the obligation — to buy (call) or sell (put) the…

Write-Up (Accounting): Definition and Examples Definition A write-up is an increase to the book (carrying) value of an asset when that carrying value is below the asset’s fair market value (FMV). It is the opposite of a write-down. Write-ups are non-cash accounting adjustments that typically arise when assets are remeasured to FMV, most commonly during…

Write-Off — Definition and Key Takeaways A write-off is an accounting entry that records a business loss by removing or reducing the carrying value of an asset. Common reasons for write-offs include uncollectible receivables, bad loans, and unusable inventory. Recording a write-off reduces reported profit and, for tax purposes, typically reduces taxable income. Key takeaways:…

Write-Down What is a write-down? A write-down is an accounting adjustment that reduces an asset’s book (carrying) value when its fair market value falls below that carrying value. The write-down amount equals the difference between the asset’s recorded book value and the recoverable amount (the cash the business could obtain by using or disposing of…

Writ of Seizure and Sale A writ of seizure and sale is a court order that allows a creditor to seize a debtor’s property and sell it—typically at auction—to satisfy an unpaid debt. It is a legal remedy used after a borrower has defaulted on obligations and other collection efforts have failed. Key points A…