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Scope Scope in project management defines the objectives, requirements, and boundaries necessary to deliver a product, service, or result. Clear scope definition enables accurate time and cost estimates, guides work allocation, and reduces the risk of costly changes during execution. Key takeaways Scope specifies what must be done (project scope) and what the final deliverable…

Schedule K-1 Federal Tax Form: What It Is and Who It’s For What is Schedule K-1? Schedule K-1 is an IRS tax document that reports a stakeholder’s share of a pass‑through entity’s income, losses, deductions, credits, and other distributions. It notifies partners, S‑corporation shareholders, and beneficiaries of trusts or estates what portion of the entity’s…

All About Schedule A (Form 1040 or 1040-SR): Itemized Deductions What is Schedule A? Schedule A (Form 1040 or 1040-SR) is the IRS attachment used by taxpayers who choose to itemize deductible expenses instead of claiming the standard deduction. Itemized deductions reduce your adjusted gross income (AGI) to determine taxable income. Explore More Resources ›…

Schedule 13G Explained Schedule 13G is an alternative SEC filing to Schedule 13D for reporting beneficial ownership of more than 5% of a company’s publicly traded equity. It is a shorter, less detailed disclosure intended for investors who do not intend to influence or control the issuer. What it reports Identifies beneficial owners who directly…

Understanding Schedule 13D: Filing Process & Key Requirements Overview Schedule 13D is an SEC filing required when a person or group acquires more than 5% of a company’s voting shares. Often called a “beneficial ownership report,” it provides transparency about large ownership stakes and signals potential changes in control, such as activist campaigns, proxy contests,…

Scenario Analysis: Techniques, Uses, and Best Practices What is scenario analysis? Scenario analysis is a forward-looking technique that models how a portfolio, project, or decision might perform under different future conditions. It evaluates outcomes across multiple “what‑if” scenarios — from optimistic to worst‑case — to reveal potential risks and opportunities. Common methods include deterministic scenarios…

Scarcity Scarcity is the economic condition that arises when demand for a product, service, or resource exceeds its available supply. In market economies, scarcity is typically resolved by price: higher prices reduce demand until supply and demand reach equilibrium. Other responses include quotas, rationing, or price controls, usually used only in emergencies or by policy…

Scalping in Trading Key takeaways * Scalping is an intraday trading strategy that seeks small, frequent profits from tiny price movements. * It relies on technical analysis, fast execution, and often leverage; risk management and strict exits are essential. * Scalpers make many trades per day—ranging from a few dozen to several hundred—and close positions…

Scalability: Definition, Impact, and How to Scale Key takeaways * Scalability is a company’s ability to grow revenue and capacity without a proportional increase in costs or loss of performance. * Scalable businesses can achieve economies of scale—lower unit costs as output rises—while avoiding diseconomies of scale that raise costs. * Technology (for example, SaaS…

Say’s Law of Markets Say’s Law holds that production creates the means and the incentive for demand: when goods and services are produced and sold, they generate income that is then used to purchase other goods and services. Money is treated as a medium of exchange, not the source of wealth. Origins and core idea…

The Savings and Loan (S&L) Crisis: Overview and Impact The Savings and Loan crisis of the 1980s and early 1990s was a major U.S. financial collapse that saw more than 1,000 savings and loan institutions fail. Fueled by regulatory mismatch, rapid deregulation, risky lending and investment practices, and widespread fraud, the crisis required large taxpayer-funded…

Savings Account: What It Is and How to Use One Key takeaways * A savings account is a bank or credit-union deposit account for holding cash while earning interest. * It offers liquidity and safety—funds are typically accessible and insured up to $250,000 per depositor, per institution. * Interest is taxable income and rates are…

Sarbanes-Oxley (SOX) Act of 2002 Overview The Sarbanes-Oxley Act of 2002 (SOX) is U.S. federal legislation enacted to strengthen corporate governance, improve the accuracy and reliability of corporate disclosures, and protect investors from financial fraud. It was passed in response to major corporate accounting scandals that damaged investor confidence and caused significant financial losses. Purpose…

Samurai Bond — Definition and Overview A Samurai bond is a yen‑denominated bond issued in Japan by a non‑Japanese (foreign) issuer and subject to Japanese regulations. It allows foreign corporations or governments to tap Japan’s capital markets and raise funds in Japanese yen. Other yen‑denominated bonds issued outside Japan are called Euroyens. Explore More Resources…

Sampling Errors: Definition, Types, Calculation, and Reduction What is a sampling error? A sampling error is the difference between a statistic calculated from a sample and the true value in the full population. It occurs because a sample—no matter how carefully drawn—is only an approximation of the population and may not perfectly represent it. Why…

Sampling Distribution A sampling distribution describes the probability distribution of a statistic (for example, a sample mean or sample proportion) calculated from repeated random samples drawn from the same population. It shows how that statistic varies from sample to sample and is the basis for making statistical inferences about the population. Key takeaways Researchers use…

Sampling: What It Is, Types, and Uses Sampling is a statistical technique that selects a subset of observations from a larger population to draw conclusions about that population. It lets researchers, auditors, and businesses analyze manageable amounts of data while producing reliable estimates—when the sample is chosen and analyzed properly. Key takeaways Sampling provides efficient,…

Salvage Value: Definition, Estimation, and Examples What is salvage value? Salvage value is the estimated amount a company expects to receive when an asset is disposed of at the end of its useful life. It’s used to determine the depreciable amount of an asset (cost minus salvage value) and therefore affects annual depreciation expense and…

Sales Tax A sales tax is a consumption tax imposed by a government on the sale of goods and services. It is typically collected by the retailer at the point of sale and remitted to the government. Sales taxes vary by jurisdiction and can include state, county, and municipal components. Key points Charged as a…

Sales Lead A sales lead is a person or business that is not yet a customer but has the potential to become one. It also refers to the contact data that identifies this potential buyer. Leads are collected through marketing and outreach efforts and must be evaluated and qualified before sales teams pursue them. How…

Sales and Purchase Agreement Explained: Definitions and Examples Key takeaways A Sales and Purchase Agreement (SPA) is a legally binding contract that records the terms and conditions under which a buyer agrees to purchase and a seller agrees to sell assets. SPAs are common in real estate, business acquisitions, and large or recurring supply transactions…

What Is a Sale? A sale is a voluntary transaction in which a seller transfers ownership of goods, services, or assets to a buyer in exchange for money or other agreed compensation. Sales range from simple retail purchases to complex transfers of real estate, vehicles, or financial securities. Key Takeaways * A sale requires agreement…

Safe Havens: Definition and Examples Key takeaways * A safe haven is an investment expected to retain or gain value during market turbulence, helping limit losses. * Common examples include gold, certain commodities, U.S. Treasury bills, defensive stocks, cash, and some currencies (e.g., Swiss franc, U.S. dollar, Japanese yen). * No asset is guaranteed to…

Safe Harbors: Definition, Types, and How They’re Used Key takeaways * A safe harbor is a legal or regulatory provision that reduces or eliminates liability when specified conditions are met. * Safe harbors appear across corporate law, securities regulation, tax and accounting, employment benefits, and online content. * They simplify compliance by offering clear rules…

Safe Deposit Boxes: What to Store and How They Work Safe deposit boxes are secure metal containers kept inside bank or credit union vaults. They provide a higher level of physical security than most home safes and are useful for storing small, hard‑to‑replace items and important documents you don’t need to access often. However, their…

S&P 500 Dividend Aristocrats Index What it is The S&P 500 Dividend Aristocrats Index tracks S&P 500 companies that have increased their cash dividend every year for at least 25 consecutive years. Constituents are equally weighted and represent established, typically large‑cap, dividend‑paying firms often regarded as blue‑chip stocks. Index criteria A company must meet all…

S&P 500 Index: A Market-Cap Benchmark for U.S. Equities What the S&P 500 Is The S&P 500 is a float-adjusted, market-capitalization-weighted index that tracks about 500 of the largest publicly traded companies based in the United States. It covers roughly 80% of the total U.S. equity market value and is widely used as a benchmark…

S Corporation (S Corp): Definition, Taxes, and How to File What is an S Corporation? An S corporation (S corp) is a corporate business structure that elects to be taxed under Subchapter S of the Internal Revenue Code. It combines the limited liability and formal structure of a corporation with pass-through taxation: the company’s income,…

Russell 3000 Index The Russell 3000 Index is a broad-market U.S. equity index that tracks the performance of the 3,000 largest publicly traded companies in the United States, representing roughly 98% of the investable U.S. equity market. It serves as the parent index for the Russell 1000 (largest 1,000 stocks) and the Russell 2000 (smallest…

Russell 2000 Index What it is The Russell 2000 Index tracks the performance of roughly 2,000 small-cap U.S. companies. Created to represent the small-cap segment of the broader Russell 3000 Index, it is widely used as the benchmark for U.S. small-cap stocks and by mutual fund and ETF managers to measure relative performance. How it’s…

What is the Russell 1000 Index? The Russell 1000 Index tracks the 1,000 largest publicly traded U.S. companies by market capitalization. It is a market-cap-weighted subset of the broader Russell 3000 and is widely used as a benchmark for U.S. large-cap equity performance, covering roughly 90–93% of the U.S. equity market by total market value….

Runoff Insurance: What It Is and How It Works Definition Runoff insurance (also called closeout insurance) is a claims-made insurance provision that covers claims asserted after a business has been acquired, merged, or ceased operations. It protects the acquiring entity (or the insured’s former directors and officers) from liabilities that relate to wrongful acts that…

Run Rate The run rate is a simple financial metric that annualizes current performance to estimate future results. It extrapolates recent revenue (or other performance measures) over a longer period—typically a year—on the assumption that current conditions continue unchanged. Key points Run rate = current period revenue × (periods per year). Example: quarterly revenue ×…

Rule of Thumb: Definition and Financial Examples A rule of thumb is a practical heuristic — a simple, experience-based guideline used to make quick decisions when precise data or calculations aren’t available. In finance, rules of thumb help with saving, investing, buying a home, insurance, and retirement planning. They’re useful starting points but are not…

Understanding the Rule of 78 The Rule of 78 is an interest-allocation method used on fixed-rate, non-revolving loans that front-loads interest charges toward the early payments. It benefits lenders and reduces the savings a borrower realizes if they repay the loan early. Borrowers who may prepay should understand how it changes interest allocation and their…