Unicorn Company

A term used by many in the financial world to describe a privately-owned startup with a valuation of more than $1 billion.  The term was first used by venture capitalist Aileen Lee implying that finding one of these companies is so rare they may as well be unicorns. ...

Retracement

A minor pullback or change in the direction of a stock, index, or other financial instrument.  Retracements differ from reversals in the sense that once they are over, there should be a continuation of the previous trend.  Also, in a reversal, the price of a security...

Residual Income

Income that one continues to receive post-completion of income-producing work.  This is found in royalties, rental or real estate income, and investment accounts.  Residual income is also referred to as “passive income” for an individual or company.  For...

Rent Seeking

An economic concept that occurs from an entity seeking to gain added wealth without contributing productivity.  The term “rent” is based on the economic definition of “rent,” as “wealth obtained through shrewd or potentially manipulative...

Passive Investing

Also called a “buy-and-hold” strategy, passive investing involves buying a security to hold it long-term.  Passive investing refers to a portfolio strategy for long-term investment with minimal market trading.  The most common form of passive investing is...