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how jewelry floaters work | a jewelry floater is an optional addition to a homeowners insurance policy that protects against financial loss from the damage or theft of valuable jewelry although basic homeowners policies typically provide some jewelry coverage individuals with sizable or valuable jewelry collections often opt to purchase a jewelry floater in addition to their basic policy if the jewelry does get damaged stolen or lost the jewelry floater can provide a higher dollar amount of coverage than would be possible under the basic home insurance plan aside from jewelry floaters are also often purchased for other types of valuable assets these are often called personal articles floaters pafs examples include fine art high end watches or even collectibles such as baseball cards 1 in some cases investors may even specifically purchase these assets as a type of alternative asset in their portfolios for these investors as well as wealthier individuals in general purchasing floaters might be a worthwhile expense to ensure peace of mind in addition to purchasing jewelry floaters policyholders will often also obtain formal appraisals of their jewelry s worth an appraisal helps the insured prove the value of their items in the event that they need to file a claim reducing the risk of any potential disputes with their insurer in fact many insurers will require that a professional appraisal be performed as part of their due diligence on the jewelry floater policy after all from the insurance company s perspective it is important to understand the value of the item so that it can set its insurance premiums at an appropriate level example of a jewelry floatertaylor is a collector of high end jewelry under their rental insurance policy taylor is entitled to a certain amount of coverage for all their personal possessions however taylor realizes that if the collection were to be stolen or destroyed they might quickly exceed the maximum coverage level under their renters insurance policy moreover because the jewelry in the collection is valuable and rare taylor worries that the insurance company might not understand its replacement value if they were to file a claim for this reason taylor decides to take out a jewelry floater in doing so taylor obtains a professional appraisal of their jewelry and incorporates this appraisal into their new insurance policy that way if taylor were to make a claim they have clarity that the insurance company understands and accepts the actual replacement value of their insured jewelry moreover taylor is careful to set the insurance policy so that its maximum coverage level would fully capture the value of their collection | |
does homeowners insurance cover jewelry theft | yes a typical homeowners or renters insurance policy will cover jewelry theft but only up to a set limit say 1 500 or 2 000 2 a jewelry floater will extend coverage for jewelry valued higher than what your homeowners insurance will cover | |
what does a jewelry floater cover | jewelry floaters typically cover a broader range of damage to your jewelry than homeowners insurance would for example a jewelry floater may cover | |
how much does a jewelry floater cost | jewelry floaters typically cost between 1 and 2 of the jewelry s value per year 3 so if you have a diamond necklace worth 12 000 a jewelry floater could cost you 120 per year the bottom linea jewelry floater is additional insurance you can purchase to protect your jewelry beyond what s covered in your homeowners insurance policy buying a jewelry floater can protect your jewelry collection in case of theft loss or damage saving you from out of pocket costs to repair or replace it | |
jim walton is the youngest son of sam walton the founder of walmart inc he served on the board of walmart from 2005 to 2016 and is currently chair of the arvest bank group | as an heir to the walmart fortune jim walton boasts a net worth of 61 3 billion in 2023 1 | |
what is a jitney | in finance the term jitney refers to a broker that does not have direct access to an exchange and therefore relies on another broker with exchange access in order to execute their trades the term can also be used to refer to a type of market manipulation in which brokers trade securities back and forth with one another in order to earn commissions and artificially produce the appearance of high trading volume understanding jitneysdepending on the context the term jitney can have a neutral or a negative connotation in the first instance a broker relying on another broker to execute transactions there is nothing necessarily untoward taking place however some brokers have been known to collude with one another in order to fraudulently generate commission revenues or else mislead other market participants into overestimating the level of market interest in a particular security this is done by repeatedly buying and selling a particular security between one or more brokers thereby generating increased transaction volume depending on the nature of the scheme this technique which is also known as circular trading account churning or a jitney game can be used to generate commissions inflate the market price of a security or initiate a sell off by other investors often these schemes are centered on securities with very thin liquidity and market capitalizations such as so called penny stocks in addition to being illegal these practices are understandably frowned upon by clients and other investors which can therefore give the term jitney a negative connotation regardless of its contextual meaning real world example of a jitneyxyz corporation is a brokerage firm with direct access to a major exchange in order to generate additional business they sometimes execute trades on behalf of a jitney client abc financial although these transactions are permissible in and of themselves these two firms also sometimes engage in more dubious practices for instance xyz and abc occasionally make repeated transactions between their two firms in order to drum up additional commission revenues for themselves effectively this practice consists of stealing from their clients other practices which the firms sometimes engage in include buying and selling thinly traded securities such as penny stocks repeatedly buying and selling their shares between one another at ever increasing prices if the liquidity in the stock is sufficiently small other market participants might be fooled into believing that the rising price of the shares represents genuine market interest thereby attracting outside buyers xyz and abc will then sell their shares to these new buyers pocketing a gain in other instances the two firms will perpetrate a similar scheme but in the reverse direction instead of transacting at ever increasing prices they will do so at ever decreasing prices the goal in this transaction would be to scare other owners of the security into selling their shares giving xyz and abc the opportunity to buy a large number of shares at an artificially low price these so called jitney game practices amount to market manipulation and they are prohibited under united states laws and regulations 1 | |
what is jitter | jitter is an anti skimming technique that distorts the readout of the magnetic strip by altering the speed or motion of the card as it is swiped or pulled into a card reader or atm jitter is designed to make any information copied by a card skimmer unreadable and thus unusable breaking down jitterjitter helps combat card skimming which is one of a variety of methods that criminals can obtain a credit or debit card number in order to copy or skim the number an individual may install a device that copies the information that is passed through the credit or debit card reader or atm these numbers are then used to make fraudulent purchases jitter technology is designed to make it more difficult for illegal card readers to copy credit and debit card numbers it is most likely to be found in atms and other machines that draw in a credit or debit card for scanning and is less likely to be a feature of machines that allow an individual to swipe his or her own card the jitter itself is a stutter in the timing of the card draw this means that when an atm accepts the card you insert the machine does not take in the card at a steady pace and may instead stop and start the scan many skimming devices require a smooth swipe in order to properly skim the numbers jitter technology does not work well in machines that allow an individual to dip in a credit or debit card manually this type of swipe feature is typically found in older atms but can also be found in more modern machines jitter is not a full proof method of fooling a credit card skimmer but can help reduce the percentage of cards that can be read if a credit card skimmer has been installed jitter technology is one reason that a credit card may fail to read when swiped as the technology can cause problems with both legitimate card readers as well as card skimmers jitter s efficacy in a fast changing security landscapejitter has been in use for more than a decade but its ability to protect financial data is not what it once was for instance even more than five years ago bankinfosecurity in 2012 a post titled 3 reasons skimmers are winning took issue with the technology s prowess the anti skimming feature known as jitter which uses a stop start or jitter motion at the card reader to prevent card details from being copied is a standard feature but one that has been defeated according to the site 1 introduced more than seven years ago to the u s market by atm manufacturers such as ncr corp diebold fujitsu and wincor nixdorf ag jitter remains the leading technology financial institutions use to prevent skimming but jitter is only effective on atms with motorized card readers readers that pull the card in read the mag stripe data and then push the card out the technology is ineffective on machines with dip readers in which the user manually inserts and withdraws the card 1 | |
what is a job lot | in finance the term job lot refers to a commodities futures contract whose denomination is smaller than the typical standard lot for that commodity for example the standard lot for a crude oil futures contract is 1 000 barrels per contract any crude oil futures contract corresponding to less than 1 000 barrels would therefore be considered a job lot the term job lot is also used in the manufacturing sector to refer to custom jobs whose parameters fall outside of the normal production process | |
how job lots work | today s commodity futures exchanges are a large and important part of the global financial markets through them producers can access the vital commodities they need while financial buyers can speculate on commodity prices and control risks through hedging activities one of the key components of this system is the fact that commodity exchanges use standard contracts this greatly simplifies the trading system and allows transactions to take place in large volumes and at high speeds oftentimes however the standard contract sizes for commodity futures could be prohibitively large for smaller companies and investors for instance the chicago mercantile exchange cme s futures contract for soybeans corresponds to roughly 136 metric tons of soybeans per contract 1 a relatively small buyer who intends to take physical delivery upon expiration of the contract might not need that quantity of supply similarly a speculator with relatively limited capital to invest might be reluctant to speculate on soybean futures if they risk being forced to potentially take delivery of such a large volume of soybeans to help accommodate these smaller market participants commodities exchanges sometimes permit smaller order sizes these job lot futures contracts permit smaller denominations such as 100 barrels of oil as compared to the standard 1 000 by allowing smaller investors to participate in the futures market job lots help increase the total liquidity of the marketplace making it easier for all traders to benefit from fast transaction times and relatively efficient prices real world example of a job lotfutures contracts are typically standardized and trade on a futures exchange a futures contract is considered a job lot when the agreement between the buyer and seller for the delivery of a commodity has a quantity below the normal limits for a commodity futures contract for example precious metals such as gold and silver are often bought and sold as commodities futures contracts a commodities exchange might issue silver futures contracts denominated in 5 ounce increments if the exchange agreed to enter into a commodity futures contract with a buyer below the 5 ounce minimum it would be considered a job lot | |
what is the job market | the job market is the market in which employers search for employees and employees search for jobs the job market is not a physical place as much as a concept demonstrating the competition and interplay between different labor forces it is also known as the labor market the job market can grow or shrink depending on the demand for labor and the available supply of workers within the overall economy other factors which impact the market are the needs of a specific industry the need for a particular education level or skill set and required job functions the job market is a significant component of any economy and is directly tied in with the demand for goods and services the job market and the unemployment ratethe job market is also directly related to the unemployment rate the unemployment rate is the percentage of people in the labor force who are not currently employed but actively seeking a job the higher the unemployment rate the greater the supply of labor in the overall job market | |
when employers have a larger pool of applicants to choose from they can be pickier or force down wages conversely as the unemployment rate drops employers are forced to compete more heavily for available workers the competition for workers has the effect of increasing wages wages determined by the job market provide valuable information for economic analysts and those who set public policy based on the state of the overall economy | the highest rate of unemployment in the u s which was documented in 1933 1during difficult economic times unemployment tends to rise as employers may reduce their staffing numbers and create fewer new jobs making it harder for people trying to find work high rates of unemployment can prolong economic stagnation a sustained period of little to no growth in an economy and contribute to social upheaval leading to the loss of opportunities for many individuals to live comfortably a report called the current population survey can measure the state of the job market it s a statistical survey performed every month by the u s bureau of labor statistics bls the study includes a representative sample of about 60 000 homes to try and determine the unemployment rate of specific regions earnings of those surveyed hours the respondents worked and many other demographic factors 2example of a job marketthe bls publishes regular snapshots of the job market titled employment situation summaries according to the november 2023 report total employment for non farm payrolls rose by 199 000 for the month and the unemployment rate which is a lagging indicator fell to 3 7 industries such as health care and government saw job gains during this time as did manufacturing due to return of workers from strikes employment in the retail sector fell 3 | |
how big is the u s labor market | in october 2023 there were 168 3 million people in the civil labor force a category that does not include active duty military personnel incarcerated individuals farm workers and government employees as a proportion of the total population this represented an employment participation rate of 62 8 percent 4 | |
what does a tight job market mean | job markets are often referred to as being tight this means that there are more positions available than unemployed individuals willing to take them on conversely when the unemployment rate is high but there are few job vacancies the job market can be described as slack or loose | |
what is the job vacancy rate in the u s | according to bls the job openings rate on the last business day of october 2023 was 5 3 a slight decrease compared to the last month sectors that saw job decreases include health care and social assistance finance and insurance and real estate and rental and leasing 5the job openings rate is calculated by dividing the number of job openings by the sum of both filled and unfilled job represented as a percentage 6the bottom linethe job market is a concept for understanding how employers seek employees and vice versa it considers at the availability of jobs and workers as well as other factors that can shape employment such as competition for skilled workers or training requirements for employees it s directly related to the unemployment rate a metric that measures the number of people who aren t employed but are seeking to do so businesses policymakers and workers may all choose to follow news related to the job market as it can be seen an important component of overall economic health | |
what is the job openings and labor turnover survey jolts | the job openings and labor turnover survey jolts is a monthly report by the bureau of labor statistics bls of the u s department of labor counting job vacancies and separations including the number of workers voluntarily quitting employment the bls surveys more than 20 000 businesses and government offices to estimate the numbers of u s job vacancies hires and separations included in the monthly jobs report the job separations numbers are subdivided into three categories total separations quits and layoffs and discharges and other separations which include deaths and retirements 1the number of vacancies is a widely followed indicator of labor demand while the quits rate is partly a function of employment demand job hires and separations can be used to gauge labor turnover 23jolts supplements the bls monthly jobs report which estimates the number of u s payrolls and the unemployment rate jolts data is released nearly a month after the monthly jobs report for the same reference period 45understanding joltsjolts data is published monthly in seasonally adjusted as well as unadjusted form subdivided by region industry and size of the workforce to produce jolts the bls surveys a representative sample of 21 000 nonfarm business and government employers 6 respondents answer questions about their businesses total employment job openings hires and separations 7job openings include all vacancies including those for part time or temporary employment at the end of the reference month meeting the following criteria 8jolts employment estimates are benchmarked or ratio adjusted monthly to the current employment estimates of the current employment statistics ces survey used to produce the monthly jobs report and the jolts to ces employment ratio is then used to adjust other jolts data jolts data are also revised in line with ces on an annual basis it takes about a year for a new business to show up in the government database used to select the survey sample for jolts 6the bls began collecting jolts data in 1999 and publishing survey results in 2002 9jolts and the great resignationthe great resignation describes the rise in the quits rate tracking voluntary separations from employment other than for retirement starting in 2021 as the u s economy and job market rebounded from the downturn caused by the covid 19 pandemic after plummeting to a low of 1 6 in april 2020 the quits rate rebounded to 2 4 by december in line with where it stood 11 months earlier before than pandemic struck the quits rate kept rising reaching a series record 3 in november 2021 and matching that level the next month as well as in march 2022 10in absolute terms the number of workers quitting jobs for reasons other than retirement reached a series high of 4 5 million in march 2022 representing an increase of 152 000 from february 11 job openings of 11 55 million at the end of march were also the highest on record representing 7 1 of the sum of filled and unfilled jobs 12as of april 2023 the number and rate of quits were at 3 8 million and 2 4 a similar rate to the one at the beginning of the pandemic the number of job openings as of april 2023 edged up to 10 1 million representing a 6 1 rate 1 | |
what is the job openings and labor turnover survey jolts | the job openings and labor turnover survey jolts is a monthly report by the bureau of labor statistics bls of the u s department of labor counting job vacancies and separations including the number of workers voluntarily quitting employment the bls surveys more than 20 000 businesses and government offices to estimate the numbers of u s job vacancies hires and separations included in the monthly jobs report the job separations numbers are subdivided into three categories total separations quits and layoffs and discharges and other separations which include deaths and retirements 1the number of vacancies is a widely followed indicator of labor demand while the quits rate is partly a function of employment demand job hires and separations can be used to gauge labor turnover 23jolts supplements the bls monthly jobs report which estimates the number of u s payrolls and the unemployment rate jolts data is released nearly a month after the monthly jobs report for the same reference period 45understanding joltsjolts data is published monthly in seasonally adjusted as well as unadjusted form subdivided by region industry and size of the workforce to produce jolts the bls surveys a representative sample of 21 000 nonfarm business and government employers 6 respondents answer questions about their businesses total employment job openings hires and separations 7job openings include all vacancies including those for part time or temporary employment at the end of the reference month meeting the following criteria 8jolts employment estimates are benchmarked or ratio adjusted monthly to the current employment estimates of the current employment statistics ces survey used to produce the monthly jobs report and the jolts to ces employment ratio is then used to adjust other jolts data jolts data are also revised in line with ces on an annual basis it takes about a year for a new business to show up in the government database used to select the survey sample for jolts 6the bls began collecting jolts data in 1999 and publishing survey results in 2002 9jolts and the great resignationthe great resignation describes the rise in the quits rate tracking voluntary separations from employment other than for retirement starting in 2021 as the u s economy and job market rebounded from the downturn caused by the covid 19 pandemic after plummeting to a low of 1 6 in april 2020 the quits rate rebounded to 2 4 by december in line with where it stood 11 months earlier before than pandemic struck the quits rate kept rising reaching a series record 3 in november 2021 and matching that level the next month as well as in march 2022 10in absolute terms the number of workers quitting jobs for reasons other than retirement reached a series high of 4 5 million in march 2022 representing an increase of 152 000 from february 11 job openings of 11 55 million at the end of march were also the highest on record representing 7 1 of the sum of filled and unfilled jobs 12as of april 2023 the number and rate of quits were at 3 8 million and 2 4 a similar rate to the one at the beginning of the pandemic the number of job openings as of april 2023 edged up to 10 1 million representing a 6 1 rate 1 | |
what are jobless claims | jobless claims are a statistic reported weekly by the u s department of labor that counts people filing to receive unemployment insurance benefits there are two categories of jobless claims initial which comprises people filing for the first time and continuing which consists of unemployed people who have already been receiving unemployment benefits jobless claims are an important leading indicator of the state of the employment situation and the health of the economy understanding jobless claimsthe nation s jobless claims are an extremely important indicator for macroeconomic analysis a weekly report produced and published by the department of labor dol tracks how many new people file for unemployment benefits in the previous week as such it is a good gauge of the u s job market for instance when more people file for unemployment benefits it generally means fewer people have jobs and vice versa investors can use this report to form an opinion of the country s economic performance however it is often very volatile data because it is reported every week the moving four week average of jobless claims is often monitored rather than the weekly figure the report is released thursday mornings at 8 30 a m et and can be a market moving event during the economic downturn caused by the spread of the covid 19 virus weekly jobless claims in the u s soared to historic levels as companies reduced their payrolls as business was halted due to social distancing more than 30 million americans filed for unemployment from mid march to april 30 2020 according to the federal reserve bank of st louis the unemployment rate hit 14 7 in april 2020 11these numbers have since improved there were 222 000 initial jobless claims filed in the week ending july 6 2024 and about 1 85 million continuing claims during the week ending june 29 2024 the unemployment rate was 4 1 as of june 2024 23 | |
how jobless claims affect the market | as mentioned the initial jobless claims measure emerging unemployment and the continued claims data measure the number of people still claiming unemployment benefits the continued claims data is released one week later than the initial claims for this reason the initial claims usually have a higher impact on the financial markets 4many financial analysts incorporate estimates of the report into their market forecast if a weekly release on jobless claims comes insignificantly different than consensus estimates this can move the markets higher or lower generally the move is the inverse of the report if initial jobless claims are down the market will often rally upwards if the initial jobless claims are up the market may slump the initial jobless claims report gets a lot of press due to its simplicity and the basic assumption that the healthier the job market the healthier the economy that is more people working means more disposable income in the economy which leads to higher personal consumption and gross domestic product gdp | |
why jobless claims matter to investors | markets may react strongly to a mid month jobless claims report particularly if it shows a difference from the cumulative evidence of other recent indicators for instance if other indicators show a weakening economy a surprise drop in jobless claims could slow down equity sellers and could actually lift stocks sometimes this happens simply because there isn t any other recent data to chew on at the time a favorable initial jobless claims report may also get lost in the shuffle of a busy news day and hardly be noticed by wall street jobless claims are also used as inputs for the creation of models and indicators for example average weekly initial jobless claims are one of the 10 components of the conference board s composite index of leading indicators 5 | |
is jobless the same as unemployed | according to the bureau of labor statistics the labor force is made up of the employed and the unemployed those who have jobs are employed those who are jobless looking for a job and available for work are unemployed 6 | |
what are the 3 types of unemployment | the three types of unemployment are frictional voluntary changes in employment structural changes in the structure of an economy such as technology replacing workers and cyclical those jobs that are lost due to changes in the business cycle 7can i collect unemployment if i quit my job no you cannot collect unemployment if you quit your job any voluntary unemployment is not eligible for unemployment benefits this means you are only eligible for unemployment benefits if you are laid off and in certain cases if you are fired 8the bottom linejobless claims are the number of people filing weekly to receive unemployment insurance due to not having a job it is an important leading indicator of the health of the economy if jobless claims are growing it signals a weakening economy conversely if jobless claims are decreasing it signals an improving economy | |
what is jobless recovery | a jobless recovery is a period in which the economy recovers from recession without reducing the unemployment rate understanding jobless recovery | |
when the economy shrinks companies suffer from declining revenues in response to this they must adapt either by raising prices gaining market share or cutting costs for most companies raising prices and gaining market share is difficult in the best of times let alone when the economy is shrinking for that reason most companies will choose to cut costs in order to survive tough economic times | one of the largest costs for businesses is workers wages so it is inevitable that many companies will respond to a recession by laying off workers or shifting jobs to less expensive workforces i e outsourcing and investing in automation this formula is one of the main causes of jobless recoveriesas the economy eventually recovers there is no guarantee that those companies will reverse their decisions and re hire the workers that they laid off during the recession workers may therefore feel left behind by the growing economy although corporate profits and gross domestic product gdp may have rebounded individual workers incomes may not have improved at the aggregate level the evidence of a jobless recovery is when the unemployment rate does not rise in line with gdp jobless recovery examplesuppose you own an industrial manufacturing and distribution business you have a factory employing 25 machinists a distribution center employing 50 warehouse workers and a headquarters employing 10 administrative employees the total payroll cost for the three facilities is 1 25 million 1 75 million and 600 000 respectively for a total of 3 6 million your company earns 20 million in revenues and has a gross profit margin of 20 after covering the cost of payroll rent and other expenses you are left with a pre tax profit of about 300 000 unfortunately in the following year the economy enters a recession and the first month produces revenues that are 25 below what they were in the same month last year you anticipate that if the trend continues you will generate revenues of only 15 million if left unchecked this would lead to a very large loss and would likely force the company into bankruptcy causing all 85 employees to lose their jobs because your rent expense is fixed due to your lease agreements your only option is to raise prices gain new customers decrease operating costs or reduce payroll costs determining that growing prices or market share will not be possible in the current economic environment and that operating expenses are as low as they can be already you conclude that the only way to keep the company alive is to aggressively reduce payroll expenses to that end you purchase five factory robots and lay off 22 of the machinists the remaining three machinists are those with the highest technical proficiency who will now be responsible for operating the robots you believe the total savings will be 1 million per year after accounting for the maintenance cost of the new robots you then make similar changes at the warehouse eliminating 35 positions and introducing 15 new robots producing another 1 million in annual savings lastly you outsource seven of the 10 administrative jobs to a low cost outsourcing provider resulting in savings of about 300 000 all told you have reduced payroll expenses by about 2 3 million five years later revenues have slowly recovered to their pre recession levels however your total number of staff are still roughly the same as they were following your aggressive reductions to payroll in fact your business is now much more profitable than it was prior to the recession meaning you have no incentive to reverse the changes you made and re hire the laid off workers if you multiply this example across the thousands of companies that exist in the united states you can begin to understand how an economic recovery can occur without a recovery of employment levels giving rise to a jobless recovery | |
what is jgtrra | the jobs and growth tax relief reconciliation act jgtrra was a u s tax law congress passed on may 23 2003 which lowered the maximum individual income tax rate on corporate dividends to 15 the jgtrra was put forward as part of an effort to jump start the u s economy following the attacks of 9 11 and the 2001 recession by reducing the amount of tax investors paid on dividends and capital gains public companies were encouraged to pay dividends instead of holding onto their cash thereby stimulating the overall economy understanding jgtrrafollowing the recession of 2001 and the 9 11 attacks the jobs and growth tax relief reconciliation act jgtrra was passed into law and did achieve its goal of spurring the u s economy the law reduced the long terms capital gains rate to 15 from 20 more controversially the law no longer treated capital gains as regular income but instead as long term capital gains as also seen with egtrra passed in june of 2001 during president george w bush s first year as president the law was not initially conceived to continue forever by 2004 the u s economy was performing well with gdp between 3 4 some economists consider the ideal range for gdp to be 2 3 as we now know the economy overheated with a variety of speculative new investments in housing and elsewhere leading to the crash of 2008 one of the worst recessions in u s history as a result of the 2008 great recession president obama and congress had their hands tied with both the egtrra of 2001 and the jgtrra of 2003 and neither law was ended as intended when first passed sunset provisions and the jgtrrathe global economy is a delicate balancing act and many would argue the u s economy is now very much out of balance with a nearly 21 0 trillion budget debt as any household knows you cannot increase spending and reduce income and make ends meet without borrowing it s politically expedient to make short term fixes during difficult times but the question lingers whether there is any practical way to enforce the sunset provisions put into place at the time of passage as just one example the tax cuts passed in late 2017 call for the individual tax brackets to revert to their former levels by 2025 sunset provisions have been around for a long time thomas jefferson believed no law passed by one generation should continue into the next at its most philosophical level this generational concern has presided over the usage of sunset clauses as a form of fairness in society the last thing the parents of one generation want is to leave the world worse off for their children given the recent popularity in u s politics of using the sunset clause as the only way to push through tax cuts we now have a 21 trillion debt burden likely to affect several generations | |
what is jobs growth | jobs growth is measured in the u s by the number of employees added to nonfarm payrolls monthly as reported by the bureau of labor statistics bls it is a key indicator of the pace of economic expansion nonfarm payrolls are part of the employment situation summary published by the bls the widely followed statistical release better known as the monthly jobs report understanding jobs growthjobs growth refers to the net increase in the number of nonfarm payrolls during the previous month this number is widely followed because employment is crucial for economic performance bigger gains suggest growth above the trend while smaller ones or outright losses may signal a slowdown that said it is important to remember that the jobs growth numbers in the employment situation summary are estimates the numbers for a given month are revised in each of the next two monthly reports based on additional survey submissions a monthly nonfarm payroll increase of about 130 000 is considered statistically significant 1the increase in total u s non farm payroll employment in june 2024 the unemployment rate derived from a separate survey rose to 4 1 2 | |
how jobs growth is measured | the bls compiles job growth data by surveying about 122 000 businesses and government agencies accounting for about 20 of total u s nonfarm employment the employment situation summary provides data from this establishment survey tracking nonfarm employment by industry as well as a separate household survey of employment status the two surveys provide headline making figures on job growth and unemployment 3although nonfarm payrolls are subtotaled by industry the most commonly reported number is the net change in u s payrolls from the preceding month which estimates the number of jobs added outside the agricultural sector farm employment is excluded from the establishment survey because it is too seasonal and harder to estimate 4because of how important it is to the economy jobs growth is closely watched by the federal reserve as it makes changes to its monetary policy 5 | |
how jobs growth is used in investing | as a comprehensive measure of u s employment and one of the earliest economic reports for a given month the employment situation summary often moves financial markets in addition to tallying nonfarm payrolls the establishment survey estimates average weekly hours worked a measure of labor demand as well as average hourly earnings an early indicator of labor cost inflation 6because of the report s importance to investors and policymakers traders compare the numbers in it to the consensus of analysts forecasts to get an early sense of whether for example nonfarm payroll gains in the latest month exceeded or trailed market expectations since the numbers fluctuate from month to month and are subject to significant revisions it takes more than a single report to establish a trend investors must also consider this metric in the context of other economic indicators despite those limitations the monthly jobs growth figure remains a key indicator of how the economy is faring | |
where do you get jobs growth numbers | the bureau of labor statistics gets job growth data from a survey of 122 000 businesses and government agencies which account for about 20 of the total u s nonfarm employment 3 | |
what jobs have the highest growth rate | according to the bureau of labor statistics the fastest growing jobs from 2022 to 2032 include wind turbine service technicians nurse practitioners data scientists statisticians information security analysts medical and health services managers epidemiologists and physician assistants 7 | |
what is the u s job growth prediction | total u s employment is expected to grow by approximately 4 7 million jobs from 2022 to 2032 total employment till then is expected to grow 0 3 annually which is slower than the 1 2 annual growth in the previous decade from 2012 to 2022 a large part of this is due to the slowing growth in the population and a reduction in the labor force participation rate due to the aging of the baby boomer generation 8the bottom linejobs growth refers to the number of nonfarm payroll jobs added to the economy in a month it is a leading indicator of the health of the economy the more jobs added indicate a healthier economy | |
what is the jobseeker s allowance jsa | the jobseeker s allowance jsa is a benefit for unemployed individuals in the u k who are actively seeking work the allowance is intended to help minimize the cost of living for those seeking full time employment understanding the jobseeker s allowance jsa the jobseeker s allowance is a conditions based benefit meaning recipients must meet certain conditions in order to retain eligibility for payments applicants who have had previous employment must submit a copy of their p45 form from their last employer the p45 lists information about previous income and the total taxes paid by the employee the main requirement for receiving the jsa is the recipient must provide proof on an ongoing basis that they are actively looking for employment this condition was introduced to prevent unemployment benefits from becoming too easily available and accessible 1precursors to the jsathe first unemployment benefits in the u k were paid in 1911 with the passage of the national insurance act the act covered 2 5 million workers and payments were intended as a supplement to other sources of income 2high unemployment rates following the end of world war i led to the creation of the unemployment insurance act of 1920 this provided weekly unemployment benefits for 15 weeks 2in 1921 the government introduced the seeking work test as a condition to receive benefits the test required recipients to show they were genuinely seeking employment and willing to accept any job paying a reasonable wage unemployment benefits have continued to evolve over the years leading to the jobseeker s allowance 2eligibility for the jsathe jobseeker s allowance is available to an individual who has the right to work in the u k and lives in england scotland or wales they must be under the state pension age but older than 18 although some 16 or 17 year old workers may qualify they must be available for work not a full time student and not be working more than 16 hours per week 3the jsa recipient must sign on at jobcentre plus every two weeks allowing the jobcentre to assess whether sufficient efforts are being made to secure employment benefits may be stopped if the jobcentre determines the claimant is not fulfilling their job seeking obligations is failing to attend interviews or is turning down offers of employment or training 3a jobseeker s allowance calculator is available on the u k government website types of jsathere are three types of jobseeker s allowance new style jsa contribution based jsa and income based jsa individuals who ve worked for two to three years and have paid class 1 national insurance contributions are eligible for the new style jsa payments last for six months and the income and savings of the recipient s partner do not impact their benefits 3the contribution based jsa is available for those who receive or who are entitled to receive severe disability premiums in addition they must have also paid class 1 national insurance contributions over the past two to three years 3the income based jsa is for those who receive or who are entitled to receive severe disability premiums but haven t worked over the past two to three years the recipient must have 16 000 or less in savings including the recipient s partner s savings in addition the claimant s partner cannot be working more than 24 hours per week 3 | |
how much is the jobseeker s allowance in the u k | if you qualify for the jobseeker s allowance in the u k you may be eligible for up to 67 20 per week if you are 18 to 24 or 84 80 per week if you are 25 and over the exact amount will depend on various factors 4 | |
how does the jobseeker s allowance work in the u k | the jobseeker s allowance in the u k seeks to assist unemployed individuals with the cost of living if unemployed individuals have paid into the national insurance then they will receive a non means tested contribution while those who have not paid into the system will receive means based tested contributions | |
do i have to register as unemployed in the u k | to receive benefits from the jobseeker s allowance program or the universal credit program in the u k you do have to register with jobcentre plus the bottom linethe jobseeker s allowance program in the u k helps reduce the cost of living for those that are currently unemployed and looking for work the program comes with various factors for eligibility as well as follow ups with job centers | |
what is the johannesburg interbank average rate jibar | the johannesburg interbank average rate jibar is the money market rate that is used in south africa the benchmark for short term loans and instruments the rate comes in one month three month six month and 12 month discount terms the 3 month jibar rate is the most widely used and accepted an individual or business that seeks to borrow money from a south african bank will typically be quoted a rate tied to the three month jibar the most commonly used for example the rate quoted to a borrower looking to get a mortgage may be jibar 7 as rates in the money market increase the cost of borrowing also increases and vice versa understanding the johannesburg interbank average rate jibar today the johannesburg interbank average rate jibar is used as the benchmark for short term interest rates in the south african markets it is determined as an average of the borrowing and lending rates indicated by a number of local and international banks jibar is calculated as a yield and then converted into a discount the rate is calculated daily by the johannesburg stock exchange for one month three month six month and 12 month discount terms after all bid and offer rates are received by participating banks the derived rate is then used by banks to buy and sell their own negotiable certificates of deposit ncds the bid and offer rates used to calculate jibar are submitted by eight banks that transact with ncds of at least 100 million rands the south african currency a mid rate is calculated as a halfway point between the bid and offer rates provided by contributors the two highest and two lowest mid rates are discarded and the remaining four mid rates are averaged to arrive at jibar while jibar represents ncd rates it also represents to a lesser extent the cost of funding in the foreign exchange fx forward and the domestic market for fixed bank deposits the three month jibor as of jan 2 2020johannesburg interbank average rate jibar and derivativesjibar is also an important tool in the interest rate derivatives market jibar futures stir are short term interest rate futures contracts which have the three month johannesburg interbank average rate as the underlying instrument this exchange traded contract has a value at its expiration of 100 minus the three month jibar rate at the expiry date the contract is an efficient way to gain exposure to the south african interest rate market and can be utilized by hedgers seeking protection against adverse interest rate movements and speculators hoping to take advantage of short term movements in interest rates the value of the stir contract decreases as the expected three month jibar rate at futures expiry increases when interest rates are expected to go up an investor or trader will short the contract investors go long the contract when they believe interest rates will decrease at some point in the future example of the johannesburg interbank average rate jibar the calculation of a south african reference rate started in the 1990s with the south african futures exchange safex bank bill rate the current reference rate system was established in 1999 prior to november 2012 the acronym stood for the johannesburg interbank agreed rate according to the south african reserve bank the three month jibor averaged 8 19 from 1999 until 2020 reaching an all time high of 16 96 in february 1999 and a record low of 5 06 in september 2012 the current jibar rate is available daily from thomson reuters and bloomberg other equivalent short term reference rates include the london interbank offered rate libor euro interbank offered rate euribor nigerian interbank offered rate nibor norwegian inter bank offered rate nibor etc | |
who is john b taylor | john b taylor is the mary and robert raymond professor of economics at stanford university and a senior fellow of economics at the hoover institution he is also the director of stanford university introductory economics center1 his fields of expertise include macroeconomics monetary policy and international economics he is best known for his work creating an interest rate forecasting tool that came to be known as the taylor rule the taylor rule asserts that the real interest rate should be 1 5 times the inflation rate based on several macroeconomic assumptions 2 more on john b taylorhe served on the president s council of economic advisers from 1976 1977 and from 1989 1991 he was also a member of the congressional budget office of economic advisers from 1995 2001 taylor has also served as under secretary of the treasury for international affairs under the george w bush administration in his home state of california taylor served as a member of the california governor s council of economic advisors from 1996 1998 and 2005 2010 3 taylor is the author of hundreds of books and studies including his landmark 1993 paper discretion vs policy rules in practice in which he introduced the arguments that came to be known as the taylor rule he is a frequent guest on financial television radio and podcasts and has penned hundreds of articles and op eds around macroeconomics and monetary policy he has also been the recipient of dozens of distinguished awards in the field of economics including the 2016 adam smith awards from the association of private enterprise education and the 2015 truman medal for economic policy in addition to his work at stanford university taylor has also taught at columbia university and the woodrow wilson school of princeton he graduated summa cum laude from princeton with a b a in economics in 1968 and received his ph d in economics from stanford university in 1973 3 | |
john bogle was the founder of the vanguard group and a major proponent of index investing commonly referred to as jack bogle revolutionized the mutual fund world by creating index investing which allows investors to buy mutual funds that track the broader market he did this with the overall intent to make investing easier and at a low cost for the average investor | he died on jan 16 2019 at the age of 89 1investopedia hugo linearly life and educationjohn bogle was born on may 8 1929 in montclair new jersey he attended blair academy which was paid for by his uncle as his family had lost most of their wealth in the 1929 stock market crash john bogle attended princeton university where he studied economics 3in his early career he joined wellington management in 1951 and attempted to persuade them to change their strategy of focusing on one investment fund to many he eventually became chairman of wellington but was fired after a poorly made merger decision he then founded his own mutual fund company vanguard group in 1974 13notable accomplishmentswith vanguard bogle employed a novel ownership structure in which the shareholders of mutual funds became part owners of the funds in which they invested the funds themselves own the investment firm making the fund investors indirect owners of the firm itself this structure allows the firm to incorporate any profits into its operating structure reducing investment costs for fund investors in 1976 bogle introduced the vanguard 500 fund which tracks the returns of the s p 500 and marked the first index fund marketed to retail investors bogle s unique structure for vanguard also made it a natural fit for the provision of no load mutual funds which do not charge a commission on investment purchases 1an index fund is an investment fund such as an etf or mutual fund with a portfolio that is constructed to match that of a specific market index | |
when the vanguard 500 fund was launched in its initial iteration it raised only 11 million in its first underwriting in 1976 as of july 28 2022 the fund manages more than 709 billion in assets 12 | bogle retired as ceo and chair of vanguard in 1999 and wrote common sense on mutual funds new imperatives for the intelligent investor the same year which has since become a classic for investors worldwide 1john bogle contributed significantly to the popularity of index investing in which a fund maintains a mix of investments that track a major market index bogle s philosophy that average investors would find it difficult or impossible to beat the market over time led him to prioritize ways to reduce expenses associated with investing in mutual funds for example bogle focused on no load funds featuring low turnover and simple investment strategies the philosophy behind passive investing generally rests upon the idea that the expenses associated with chasing high market returns cancel out most or all of the gains an investor would otherwise achieve with a passive strategy that relies upon funds with lower turnover management fees and expense ratios passive investing stands in contrast to active investing which requires managers to take a more hands on role with the intent of outperforming the market index funds fit this model nicely because they base their holdings on the securities listed on any given index investors who purchase shares in index funds gain the benefit of the diversity represented by all the securities on an index this protects against the risk that a given company will lower the performance of the overall fund index funds also more or less run themselves as managers only need to ensure their holdings match those of the index they follow this keeps fees lower for index funds than for funds with more active trading finally because index funds require fewer trades to maintain their portfolios than funds with more active management schemes index funds tend to produce more tax efficient returns than other types of funds | |
what was john bogle s net worth | at the time of his death in 2019 john bogle s net worth was approximately 80 million he earned the bulk of that money as the founder of the investment management company vanguard 4who invented passive investing john bogle the founder of the investment management firm vanguard invented passive investing by doing so he created a new industry focused on this type of investing as opposed to the traditional method of investing active investing he is known as the father of passive investing 5 | |
what is the difference between an etf and an index fund | an etf can be bought and sold on an exchange like a stock at any point whereas an index fund can only be traded at the end of the day at the set price point etfs provide greater flexibility than index funds the bottom linejohn bogle is a titan in the history of investment management by starting the vanguard group one of the largest investment management firms in the world through vanguard he popularized passive investing making it easier for average investors to invest their capital and generate returns with low risks | |
john elkann may not necessarily be a household name but he s certainly associated with a number of corporations with which many people are familiar notably fiat chrysler and ferrari | although he comes from a long line of industrialists who established the fiat name elkann has established himself as an executive with drive and a vision keep reading to find out more about john elkann s early life education career background and other interests early life and educationjohn elkann is a member of the powerful agnelli family that controlled the italian automaker fiat he was born in new york city in 1976 he traveled extensively as a child and lived in several countries including the united kingdom brazil france and italy this helped him become fluent in four languages italian english spanish and portuguese according to elkann his life was always about being confronted with an environment where you had to adapt 23he studied sciences at the lyc e victor duruy in paris and earned an engineering degree from politecnico di torino in turin italy in 2001 he held a number of internships that allowed him to see how the automotive industry works 4these experiences allowed him to see the factory marketing and sales aspects of the company his background included a headlamp factory in the u k a production line in poland and a car dealership in france by the time he landed a seat on fiat s board in 1997 elkann was already writing his undergraduate thesis on e auctions as a part of general electric s corporate initiatives group 35notable accomplishmentselkann is the chair of automakers stellantis and ferrari he is also a board member chair and chief executive officer ceo of exor a holding company that has a stake in both automakers he ranked in the 1 445th spot on forbes s billionaire s list with a net worth totaling 2 1 billion as of may 18 2022 67he was raised to take part in the family business under his grandfather gianni agnelli s direction as such he became a member of fiat s board in 1997 at the insistence of his grandfather after the death of his cousin giovanni alberto agnelli 8in 2004 elkann became vice chair of fiat a year after his grandfather s death the company was suffering from the poor reputation its vehicles had when it came to reliability elkann worked closely with management and helped to turn the company around he became chair of the company in 2010 at the age of 36 when luca cordero di montezemolo stepped down 7stellantis owns many famous car brands including fiat chrysler dodge jeep peugeot maserati alfa romeo and citroen 9during his time leading the company elkann oversaw the acquisition of chrysler in 2009 he was also instrumental in the 2021 merger of fiat chrysler and peugeot which resulted in a new entity named stellantis the newly formed company has an industrial presence in about 30 countries as well as commercially in 130 markets 107elkann also holds a number of positions outside of his corporate interests in automaking exor owns an interest in juventus football club which gives elkann a stake in the club the league which is based in turin was founded in 1897 and is owned by the agnelli family 117who owns ferrari ferrari is a public company which means it is primarily owned by shareholders however the largest owner of ferrari is the agnelli family through its holding company exor which owns 22 9 of ferrari 12 | |
how rich is john elkann | john elkann s net worth as of may 18 2022 was 2 1 billion he is part of the wealthy agnelli family that started the car company fiat elkann is also chair of stellantis and chair and ceo of exor 7 | |
what famous family owns juventus | the football club juventus fc is owned by the agnelli family through its holding company exor the bottom linejohn elkann is the head of the agnelli family which is renowned for founding the automaker fiat and having a hand in many other car brands such as ferrari elkann holds important roles in famous companies including being the chair of fiat and ferrari as well as the chair and ceo of exor which manages his family s investments | |
john forbes nash jr was an american mathematician he was born in 1928 in west virginia and was a pioneer in the study of differential geometry and partial differential equations he also developed an equilibrium theory known as the nash equilibrium of which the prisoner s dilemma is a well known example nash won the 1994 nobel prize in economics along with two other individuals for his development of the mathematical foundations of game theory nash died in a car crash in 2015 | investopedia lara antalearly life and educationjohn f nash jr was born in bluefield west virginia in 1928 instead of economics nash studied math at carnegie institute of technology and later earned his doctorate from princeton university at the age of 22 1 it was at princeton that he began work on his equilibrium theory he worked at mit and for the rand corporation nash was diagnosed with paranoid schizophrenia in 1959 the condition had a negative impact on his career for more than two decades by the early 1970s nash received treatment that allowed his condition to improve to the point that he was able to begin teaching again at princeton he served as a senior research mathematician at the school for the last 20 years of his life there he later became known as the phantom of fine hall for his habit of filling blackboards with complex equations during the night when no one else was around 23in 2015 john and alicia nash were killed when the taxi they were riding in crashed in new jersey he was 86 and she was 82 they were returning from norway where nash was awarded the 2015 abel prize from the norwegian academy of science and letters 3nash was portrayed by russell crowe in the 2001 academy award winning film a beautiful mind the film chronicles his life along with that of his wife alicia as they struggled between his genius and his mental illness it was based on the 1998 biography by sylvia nasar notable accomplishments and deedsnash is credited with several key mathematical theories that helped him forge a name in the field these included the following nash offered a speech that looked back on his tumultuous but accomplished life and concluded as noted above nash was awarded the nobel prize in economics in 1994 he shared the award with two other individuals john c harsanyi and reinhard selten they were given the prize for their pioneering analysis of equilibria in the theory of non cooperative games 5nash also received the abel prize in 2015 named after niels henrik abel it is norway s award for those who achieve milestones in the field of mathematics it is awarded on behalf of the country s education ministry by the norwegian academy of science and letter 67as noted earlier nash made great strides with his work in mathematics he developed several mathematical concepts including the nash embedding theorem through his work he was also able to recognize the difference between cooperative those where multiple players have the same objective and non cooperative games games that involve individual players who compete with one another | |
what did john nash jr study | john nash jr studied math at carnegie institute of technology he earned his doctorate at princeton university in math he graduated from princeton at the age of 22 | |
what mathematical concepts are attributed to john nash jr | nash is associated with several mathematical concepts including the nash moser inverse function theorem and the nash de giorgi theorem but his most famous work is probably the nash embedding theorems which the norwegian academy of science and letter called the most original results in geometric analysis 3 | |
why was john nash jr awarded the nobel prize | john nash jr was awarded the nobel prize in economics in 1994 he shared the prize with two others john c harsanyi and reinhard selten for their pioneering analysis of equilibria in the theory of non cooperative games 5the bottom linejohn f nash jr was a pioneer in mathematics he is credited with developing several mathematical concepts and won several awards for his work in the theory of non cooperative games although he may not be a household name his life was the subject of a hollywood movie the mental health challenges he faced and his accomplishments are among the central themes of a beautiful mind starring russell crowe | |
john maynard keynes was an early 20th century british economist best known as the founder of keynesian economics and the father of modern macroeconomics one of the hallmarks of keynesian economics is the idea that governments should actively try to influence the course of economies especially by increasing spending to stimulate demand in the face of recession | in his seminal work the general theory of employment interest and money considered one of the most influential economics books in history keynes advocated for government intervention as a solution to high unemployment investopedia julie bangeducation and early careerkeynes early interest in economics was due in large part to his father john neville keynes an economics lecturer at cambridge university his mother one of cambridge s first female graduates was active in charitable work for the underprivileged born into a middle class family he received scholarships to two of the most elite schools in england eton college and cambridge university where he earned an undergraduate degree in mathematics in 1904 he excelled at mathematics throughout his academic career and notably he had almost no formal training in economics early in his career keynes worked on probability theory and lectured in economics as fellow of king s college at cambridge university his government roles ranged from official positions in the british civil service and the british treasury to appointments to royal commissions on currency and finance including his 1919 appointment as the treasury s financial representative at the versailles peace conference that ended world war i 1advocacy of government intervention in the economykeynes father was an advocate of laissez faire economics an economic philosophy of free market capitalism that opposes government intervention keynes himself was a conventional believer in the principles of the free market and an active investor in the stock market during his time at cambridge however after the 1929 stock market crash triggered the great depression keynes came to believe that unrestricted free market capitalism was essentially flawed and needed to be reformulated not only to function better in its own right but also to outperform competitive systems like communism 2as a result he began advocating for government intervention to curb unemployment and correct economic recession in addition to government jobs programs he argued that increased government spending was necessary to decrease unemployment even if it meant a budget deficit | |
what is keynesian economics | the theories of john maynard keynes known as keynesian economics center around the idea that governments should play an active role in their countries economies instead of just letting the free market reign specifically keynes advocated federal spending to mitigate downturns in business cycles the most basic principle of keynesian economics is that demand not supply is the driving force of an economy at the time conventional economic wisdom held the opposite view that supply creates demand because aggregate demand the total spending for and consumption of goods and services by the private sector and the government drives supply total spending determines all economic outcomes from the production of goods to the employment rate another basic principle of keynesian economics is that the best way to pull an economy out of a recession is for the government to increase demand by infusing the economy with capital in short consumption spending is the key to economic recovery these two principles are the basis of keynes belief that demand is so important that even if a government has to go into debt to spend it should do so according to keynes the government boosting the economy in this way will stimulate consumer demand which in turn spurs production and ensures full employment criticism of keynesian economicsalthough widely adopted after world war ii keynesian economics has attracted plenty of criticism since the ideas were first introduced in the 1930s one major criticism deals with the concept of big government the expansion of federal initiatives that must occur to enable the government to participate actively in the economy rival economic theorists like those of the chicago school of economics argue that economic recessions and booms are part of the natural order of business cycles direct government intervention only worsens the recovery process and federal spending discourages private investment the most famous critic of keynesian economics was milton friedman an american economist best known for his advocacy of free market capitalism considered the most influential economist of the second half of the 20th century as keynes was the most influential economist of the first half friedman advocated monetarism which refuted important parts of keynesian economics keynes held that fiscal policy government spending and tax policies to influence economic conditions is more important than monetary policy control of the overall supply of money available to banks consumers and businesses in contrast friedman and fellow monetarists held that governments could foster economic stability by targeting the growth rate of the money supply in short friedman and monetarist economists advocate the control of money in the economy while keynesian economists advocate government expenditure for example while keynes believed that an interventionist government could moderate recessions by using fiscal policy to prop up aggregate demand spur consumption and reduce unemployment friedman criticized deficit spending and argued for a return to the free market including smaller government and deregulation in most areas of the economy supplemented by a steady increase of the money supply with its advocacy of government intervention in the economy keynesian economics is in sharp contrast to laissez faire economics which argues that the less the government is involved in economic affairs the better for business and society as a whole examples of keynesian economicsthe onset of the great depression in the 1930s significantly influenced keynes economic theories and led to the widespread adoption of several of his policies to address the crisis in the u s president franklin roosevelt enacted the new deal a series of government programs that directly reflected the keynesian principle that even a free enterprise capitalist system requires some federal oversight with the new deal the u s government intervened to stimulate the national economy on an unprecedented scale including creating several new agencies focused on providing jobs to unemployed americans and stabilizing the price of consumer goods roosevelt also adopted keynes policy of expanded deficit spending to stimulate demand including programs for public housing slum clearance railroad construction and other massive public works in response to the great recession of 2007 2009 president barack obama took several steps that reflected keynesian economic theory the federal government bailed out debt ridden companies in several industries it also took into conservatorship fannie mae and freddie mac the two major market makers and guarantors of mortgages and home loans in 2009 president obama signed the american recovery and reinvestment act an 831 billion government stimulus package designed to save existing jobs and create new ones it included tax cuts credits and unemployment benefits for families it also earmarked expenditures for healthcare infrastructure and education in the wake of the covid 19 pandemic of 2020 the u s government under president donald trump and president joseph biden offered a variety of relief loan forgiveness and loan extension programs the u s government also supplemented weekly state unemployment benefits and sent american taxpayers direct aid in the form of three separate tax free stimulus checks legacysince the 1930s the popularity of keynesian economics has risen and fallen and the theories have undergone considerable revision since keynes day however the economic school of thought he founded has left one indelible stamp on modern nations the idea that governments have a role to play in business even in capitalist economies who said keynesian economics was spending your way out of a recession it was milton friedman who attacked the central keynesian idea that consumption is the key to economic recovery as trying to spend your way out of a recession 3 unlike keynes friedman believed that government spending and racking up debt eventually leads to inflation a rise in prices that lessens the value of money and wages which can be disastrous unless accompanied by underlying economic growth the stagflation of the 1970s was a case in point it was paradoxically a period with high unemployment and low production but also high inflation and high interest rates was keynes a socialist it is difficult to pigeonhole keynes as a socialist on the one hand he showed an interest in socialist regimes and advocated the presence of government in economic affairs he emphatically did not believe in letting business cycles go through boom and bust without intervention or in letting private enterprise operate unfettered on the other hand keynes stopped short of advocating that governments actually take over and run industries he wanted central authorities to stimulate but not necessarily control methods of production there is also evidence that he was returning to more traditional free market capitalism towards the end of his life as he was considering ways to get post war britain out of an economic hole shortly before his death in 1946 he told his friend henry clay that he found himself relying more on a solution he had tried to eject from economic thinking twenty years ago adam smith s invisible hand the natural tendency of a free market economy to self correct via the laws of supply and demand 45 | |
john richard hicks was a british neo keynesian economist hicks was born in the united kingdom in 1904 and studied at oxford university where he also lectured during his career hicks became well known for his contributions to labor economics utility and price theory macroeconomics and welfare economics he received the 1972 nobel memorial prize in economics sharing it with kenneth arrow for their advancement of general equilibrium theory and welfare theory | investopedia alison czinkotaearly life and educationjohn r hicks was born in the united kingdom in warwick on april 8 1904 he studied at clifton college and oxford university between 1917 and 1926 where he focused on economics math philosophy and politics 1after graduating he lectured at the london school of economics and political science from 1926 to 1935 he also taught at cambridge university and the university of manchester before returning to oxford in 1946 21hicks married fellow economist ursula webb in 1935 the couple had no children he was knighted in 1964 for his work in economics and was awarded the nobel prize in 1972 hicks died on may 20 1989 1hicks wife ursula webb was one of the founders of the review of economic studies the academic journal was established in 1933 for young economists 3notable accomplishmentshicks made several important contributions to economic theory during his career these contributions ranged from fundamental neoclassical price theory to macroeconomic modeling hicks was awarded the nobel prize in 1972 he shared the honor with kenneth j arrow another neoclassical economist their work on general equilibrium analysis and welfare economics earned them the award before he was awarded the nobel prize hicks was knighted in 1964 he also received a number of honorary doctorate degrees from several universities in the u k 1hicks first book theory of wages developed the microeconomics of wage determination in competitive and regulated labor markets in this work he introduced the concept of elasticity of substitution between capital and labor which became his basis to dispute karl marx s theory by arguing that labor saving technological progress does not necessarily reduce labor s share of income this book became a standard textbook on labor economics for decades in his early papers and his second book value and capital he advanced the utility and price theory with his introduction of the hicksian compensated demand curve he also explored the concept of composite goods to simplify demand modeling along with the exploration of the income effect and substitution effect hicks also advanced the microeconomic analysis of interactions in value and capital between markets by formalizing a model of comparative statics and introduced walrasian general equilibrium theory to the english speaking world these models show how changes in markets impact conditions in other markets and how all the individual markets in an economy interact to yield an overall equilibrium for all markets hicks is well known for making four major contributions to the field of economics his first is the elasticity of substitution it was used to demonstrate how labor saving processes don t have a direct impact on the reduction of the share of national income hicks is lm model formalized keynesian macroeconomic theory to show how an economy can be in equilibrium with less than full employment the is lm model depicts macroeconomic equilibrium as a product of the interaction of financial markets and real goods markets this model is a common classroom tool in macroeconomics and is sometimes used to assess macroeconomic stabilization policies as well as economic fluctuations his book value and capital which was published in 1939 is generally considered his third major accomplishment in economics the hicksian price and utility models he introduced in the book mathematically demonstrate how consumer preferences price changes and income interact to shape demand for goods and are still used as foundational elements of price theory in microeconomics in welfare economics hicks is well known for his hicks compensation principle also known as hicks efficiency this concept can be used as a criterion to judge the costs and benefits of changes to the economy and economic policy by comparing the losses for the losers with the gains for the winners | |
what is john r hicks known for | john r hicks is best known for significant work in the field of economics and is considered one of the most influential economists of the 20th century his major accomplishments include his contributions to labor economics utility and price theory and macroeconomics he also made great strides in his theories about welfare economics hicks was awarded the nobel prize with kenneth arrow for their work on general equilibrium theory and welfare theory | |
why did john r hicks win the nobel prize | john hicks won the nobel prize in economics in 1972 with kenneth j arrow the two economists were awarded the prize for their work on general equilibrium analysis and welfare economics | |
what was john r hicks is lm model | hicks is lm model is designed to show the relationship between the market for economic goods and loanable funds which is also known as the money market the former is called is or investment savings while the latter is known as lm the model is depicted on a graph where the is and lm intersect at the point where between the short run equilibrium and the interest rates and output it is often used to highlight how market preference changes affect the balance of interest rates and gdp the bottom linejohn r hicks is often considered one of the most influential economists of the 20th century he is credited with making significant contributions to several areas of the field including labor economics and welfare economics but it was his work with kenneth arrow involving general equilibrium theory and welfare theory that won the two men the nobel prize in 1972 | |
john stuart mill 1806 1873 was an influential philosopher economist and politician as well as a high level employee of the east india company a controversial figure in 19th century britain he advocated the use of classical economic theory philosophical thought and social awareness in political decision making and legislation | many of his views including those on the legal status of women and the issue of slavery were progressive for his time he was a co founder of the first women s suffragist society and sided with the union during the u s civil war 1mill combined economics with philosophy he believed in a moral theory called utilitarianism that actions that lead to people s happiness are right and that those that lead to suffering are wrong he s best known for his 1848 book principles of political economy a leading economic textbook for decades after its publication 2 other significant works include on liberty a system of logic the subjection of women and utilitarianism investopedia zoe hansenearly life and educationjohn stuart mill was born in london the eldest son of the british historian economist and philosopher james mill and his wife harriet barrow his father gave him a rigorous education introducing him to greek at the age of three and to latin when he was eight mathematics and economic theory were also part of the curriculum 3much of john stuart mill s beliefs thoughts and influential works can be attributed to this upbringing and the ideology taught to him by james mill his father became acquainted with the leading political theorist jeremy bentham in 1808 and together they started a political movement that embraced philosophical radicalism and utilitarianism which advocates the greatest amount of good for the greatest number of people it was during this time that the young mill was indoctrinated with the economic theory political thinking and social beliefs that would shape his later work his challenging childhood may have been responsible for the severe depression that dogged mill in 1826 1827 he found his way out of this malaise largely through reading the romantic poets whose work appears to have given him an appreciation for the power of emotions and an urgency for social reform this led him to new directions in his thinking 3another important influence on mill s life was his wife harriet taylor who he married in 1830 the pair worked so closely together on his writings that he is said to have considered her the co author of many of his works 3mill worked for many years for the powerful east india company he joined it at age 16 and was employed there for 38 years 4during 1865 68 mill served as a member of parliament mp representing the city of westminster notable accomplishmentsjohn stuart mill is considered one of the most influential british thought leaders on political discourse including epistemology economics ethics metaphysics social and political philosophy he used his numerous articles essays and books to compare the legal status of women at the time to the legal status of slaves to promote radical empiricism as a function of mathematics and to pioneer the harm principle the idea that political power should only be wielded over a member of an organization when that power is used to prevent harm to that member while a passionate believer in freedom and individual rights as an economist mill was not a consistent advocate of a laissez faire system he favored taxes and government oversight such as workplace regulations and limits to workers hours his later writings suggest a shift away from classic economics belief in the free marketplace and capitalism towards socialism or at least a mixed economy elaborating on the theories of early economists david ricardo and adam smith mills helped develop such economic concepts as opportunity cost economies of scale and comparative advantage in trade 2in order of publication mill s best known works include the utilitarian creed which accepts as the foundation of morals utility or the greatest happiness principle holds that actions are right in proportion as they tend to promote happiness wrong as they tend to produce the reverse of happiness by happiness is intended pleasure and the absence of pain by unhappiness pain and the privation of pleasure john stuart mill utilitarianismpersonal lifethe love of mill s life was harriet hardy taylor after two decades of a close friendship when she was the wife of another man they married in 1851 an intelligent liberal thinker and writer in her own right taylor inspired much of mill s work he openly acknowledges her influence in the subjection of women and she may well have edited or co written some of his pieces certainly she helped turn mill s attention to the progressive ideals which she was passionate about socialism women s rights individual liberty and a utopian view of humanity s improvability 7 | |
what are john stuart mill s most important works | john stuart mill s most important works include principles of political economy 1848 on liberty 1859 utilitarianism 1861 and the subjection of women 1869 | |
what is john stuart mill s utilitarianism philosophy | expanding on philosopher jeremy bentham s original doctrine john stuart s mill s utilitarianism has three basic tenets mill espoused these theories in his 1861 essay utilitarianism | |
what were john stuart mill s economic beliefs | john stuart mill espoused his economic theories in principles of political economy a 19th century term equivalent to our contemporary macroeconomics first published in 1848 it went through several editions as he developed and refined his ideas for mill economics is closely tied to social philosophy and politics wealth is the natural end product of labor but the distribution of wealth is determined by the decisions and the will of actual people albeit an elite class of educated people consequently human laws and institutions can and should determine how wealth is distributed mill believed in the superiority of a socialist system in which economic production is driven by worker owned cooperatives but he also believed in free enterprise competition and individual initiative governments had a responsibility to maintain these things as well as to prevent monopolies look after the poor and provide an education for young people the bottom linejohn stuart mill was a politician philosopher and economist who remains of lasting interest as a liberal thinker an advocate of the individual s rights and pursuit of happiness and an ethical theorist mill believed that economic theory and philosophy were needed in politics along with social awareness to make better decisions for the good of the people several of his books including principles of political economy utilitarianism and a system of logic led him to become one of the most important if somewhat controversial public figures in 19th century british politics and economics | |
what is the s c johnson graduate school of management | the samuel curtis johnson graduate school of management or cornell johnson is a graduate business school based at cornell university in ithaca new york founded in 1946 the school received its current name following a 20 million gift from the family of philanthropist samuel curtis johnson cornell johnson s mba program has historically performed well on international b school rankings in 2023 u s news world report ranked it 15 worldwide 1cornell johnson curriculumcornell johnson offers a variety of programs including a two year residential master of business administration mba program and a one year johnson cornell tech mba for students unable to commit to a full time program cornell s samuel curtis johnson graduate school of management offers three executive mba programs that provide an ivy league education with the needs of working professionals 2the cornell johnson mba program provides a highly immersive experience through internships case studies and visits to relevant companies additionally students select an area of focus relatively early in the mba curriculum areas of specialization include cornell johnson offers a 22 month executive mba program where students take courses on alternating weekends in new york city and participate in four immersive interactive residencies at cornell university s main campus in ithaca ny 3tuitionin line with ivy league schools the cost of attending cornell johnson is among the highest of any business school its estimated full time tuition is 76 690 per year the executive mba program total is approximately 209 828 1student experiencein 2022 over 96 of cornell johnson graduates have received job offers within 3 months of graduation the average starting salary for the graduating class of 2022 was 154 853 4graduates join the johnson school s alumni community and become part of cornell s big red network an international group of more than 150 000 prominent alumni include ken durr former ceo of chevron daniel hesse former ceo of sprint corporation and anne chow ceo of at t business 5 | |
what is the corporate partnership of cornell johnson | the school partners with 65 companies or corporations to provide students with real world exposure and industry connections 6can graduates of cornell johnson explore careers in consulting nearly 30 of johnson school graduates pursue careers in consulting with preparation from project based consulting courses and a management consulting immersion 5 | |
does cornell johnson have programs for veterans | cornell johnson has an immersion program that works with veterans as they transition into new careers 7the bottom linethe samuel curtis johnson graduate school of management has an extensive alumni network the school has an mba executive mba master of professional studies and other business degree options cornell johnson provides students with an ivy league education and professional connections | |
what is joint | joint is a legal term describing a financial transaction or agreement where two or more parties act in unison | |
how joint works | joint can pertain to accounts or ownership in real property such as joint owned property this is property owned by two or more people who may be business partners spouses family members or friends if land a home or a business is owned jointly each participating party shares in both the risks and rewards joint can also refer to liability joint liability exists in situations where two or more people share the burden of a debt for example if a husband and wife have joint liability for a tax debt each is responsible for the entire amount of the debt there may be ways to request relief from tax interest and penalty liabilities resulting from a joint tax return consult with a tax attorney or other certified professional for details 1types of joint arrangementsjoint as a term can be applied to a wide variety of financial situations including the following the fdic estimates that up to one third of bank deposit accounts are joint accounts 2 with joint accounts two or more parties share a single account the law and financial institutions typically consider both parties to be equal owners regardless of who started the account or contributed more money joint accounts may benefit from more than the typical 250 000 insurance from the fdic as each co owner of a joint account is insured up to 250 000 if two people are qualified co owners on a joint account the account s contents could be insured for up to 500 000 3co owners can spend or transfer funds to other accounts without the consent of the other account holder most joint accounts have rights of survivorship which means that if one account holder dies the other will automatically retain rights to the account funds 4joint tenancy refers to when two or more parties share equal shares of ownership in property with the same deed at the same time this type of holding title is most common between spouses and among family members because rights of survivorship are involved similar to joint accounts 5joint tenancy differs from a tenancy in common with tenancy in common tenants may have different shares of ownership that could be obtained at different times joint and survivor annuities are insurance products that continue regular payments as long as one of the annuitants is alive a joint and survivor annuity must have two or more annuitants married couples may choose a joint annuity to guarantee that in the case of death the surviving spouse receives regular income for life 6in a joint venture two unaffiliated companies contribute financial and physical assets and personnel to a new company although joint ventures are generally considered partnerships they can take on any legal structure joint ventures can help qualifying businesses typically in a mentor prot g relationship compete for set aside government contracts reserved for small businesses 7corporations partnerships limited liability companies llcs and other business entities can all be involved in joint ventures joint venture agreements take into account the number of parties involved the joint venture s operation scope the terms of each party s role and contribution the ownership split and how the joint ventures will be administered managed and staffed frequently asked questions faqs | |
what is a joint home equity loan | a joint home equity loan is a home equity loan with two co borrowers the co borrowers can be spouses or a homeowner and a trusted loan co signer without interest in the property a lender cannot treat married and unmarried co borrowers differently 8 | |
what is a joint applicant | a joint applicant is someone who agrees to apply for a loan credit card or other financial product with you the joint applicant s credit history and score will likely be considered alongside your own which can help or hurt your application young adults under age 21 without income may need to find a joint applicant to apply for a credit card if the card issuer allows co signers 9 | |
is a joint loan a good idea | if you help someone get a loan or credit card as a joint account holder be careful you re legally agreeing to pay back the loan or any amount borrowed even if you and the other account holder are no longer on speaking terms in the future the loan or credit card will appear on your credit reports and you will be responsible for the debt any delinquent debt from a joint loan or card could lower your credit score and a debt collection agency may seek to recover the debt if the terms of your loan are unclear seek legal advice from an attorney 910the bottom linejoint financial undertakings require two or more parties to accept ongoing responsibility for risks and rewards a joint bank account could provide both parties with funds for paying rent for example but it also leaves you legally responsible for fees even if your joint account owner s behavior led to penalties carefully consider the financial and legal implications of entering into a joint contract with another person and speak with an attorney to ensure you understand potential risks | |
what is a joint account | a joint account is a bank or brokerage account shared between two or more individuals joint accounts are most likely to be used by relatives couples or business partners who have a level of familiarity and trust with each other a joint account functions like a standard account such as a checking or savings account and allows anyone named on the account to access its funds all owners can withdraw cash write checks and make online payments | |
how joint accounts work | joint accounts work just like regular accounts except they can have two or more authorized users joint accounts can be established permanently such as an account for a couple into which their salaries are deposited the account may also be temporary such as an account between two parties who are contributing funds in the short term bank accounts held jointly between two parties may be titled with an and or an or between the account holders names if the account is listed as an and account then both all parties must sign to access the funds if it is an or account only one party must sign accounts jointly held include deposit accounts at banks including checking and savings accounts credit cards and other credit products such as loans lines of credit loc and mortgages the joint status authorizes all those listed on the account to full use but also the responsibility for any payments fees or charges incurred opening a joint account is as simple as opening up a single account both parties should be present at the bank when the account is open whether that s a deposit account or another product like a mortgage or loan for credit cards adding a secondary or authorized user is akin to opening a joint account in most cases this requires the signature of the second party uses and benefits of joint accountsjoint accounts can be helpful for their holders and provide several benefits many funds require minimum balances particularly if the holder wants to access the benefits of a specific account type by pooling their money two people can bypass this requirement and reap the benefits of the account opening a joint account may also be helpful to newer couples who are combining their finances couples may find it easier to have a single account into which they can deposit their paychecks and make payments for their rent or mortgage bills or other joint debts a senior may find it helpful to add one of their children or another authorized user to their accounts to pay bills and do routine banking on their behalf if and when they are not able to do so on their own pitfalls of joint accountsjoint accounts can cause problems however because they generally provide all parties unlimited access to the funds thus if one spouse has difficulty controlling their spending habits this may affect the other spouse who may be more frugal the frugal spouse cannot challenge the withdrawals or transactions of the other spouse with the bank because they are listed as a joint account holder another thing to remember with joint accounts is that all parties with access are responsible for any fees if your husband runs up your joint credit card you are equally responsible for paying it back similarly if your joint checking account goes into overdraft you are liable for a negative balance the government may seize any funds in a joint account to satisfy an outstanding order that includes back taxes that may be owed child support or other court ordered garnishments it is best for both parties to discuss the responsibilities associated with opening a joint account before doing so this can avoid any unnecessary problems and conflicts that may arise all parties should discuss the pros and cons of opening a joint account to avoid potential future conflicts joint account rightsseveral titling mechanics designate how the funds are divided if one of the parties on the account passes away these options are required on joint brokerage accounts joint tenants with rights of survivorship jtwros if one of the parties passes away the assets in the account pass by the rule of law outside of probate to the surviving parties tenants in common tic this allows each joint holder of the account to designate their beneficiary for their portion of the assets in the event they pass away instead of transferring by the rule of law to the second account holder the assets are passed to the beneficiary in addition the assets may not be automatically split 50 50 the tic designation allows the tenants to divide property ownership in any way they choose joint tenants option this option mandates a 50 50 split of the assets in the joint account | |
joint and several liability is a legal term for a responsibility shared by two or more parties to a lawsuit a wronged party may sue any or all of them as well as collect the total damages awarded by a court from any or all of them | in such cases responsibility for the total amount awarded would be shared by all failure by any of the parties to pay would increase the obligation of the others | |
how does joint and several liability work | joint and several liability favors the plaintiff suing for damages because it empowers them to pursue full payment if necessary from the party with the deepest pockets if the others named cannot pay if all of the parties involved are insolvent and uninsured then the plaintiff collects nothing joint and several liability differs in law from comparative fault in which multiple parties are assigned responsibility for a portion of the damages in relation to the degree of fault that they bear for the harm in such cases a plaintiff may be left in the position of seeking damages from the party that is least able to pay comparative fault is sometimes called pure several liability it is more common in the united states than joint and several liability most u s states have limited the use of joint and several liability or have developed a hybrid approach for example a state might allow joint and several liability to apply only to parties who are found responsible for more than 50 of the damage done the hybrid approach was adopted as a means of reforming a system that appeared to encourage some plaintiffs to add a single party with deep pockets such as a large corporation to a suit to get an outsized award criticism of joint and several liabilityas noted joint and several liability tends to benefit the plaintiff as it increases the chances that all of the damages awarded can be collected most states in the u s limit the use of joint and several responsibility or employ a hybrid approach on the other hand it may be considered unfair to a party who bears only a minor responsibility for an adverse event to bear an outsized financial loss because of it example of a joint and several liability suita joint and several liability case could be launched on behalf of workers who became ill after working at multiple job sites where they were exposed to harmful materials for example they might be construction workers who suffer physical ailments that can be attributed to contact with a toxic substance that was present in materials used in all of their workplaces the workers might argue that inadequate precautions were taken by several employers who were responsible for worker safety at various sites where they worked | |
what does it mean to be jointly and severally liable | joint and several liability makes all parties in a lawsuit responsible for damages up to the entire amount awarded that is if one party is unable to pay then the others named must pay more than their share | |
what is several but not joint liability | several liability or proportionate liability is when all parties are liable for just their own respective obligations in effect it is the opposite of joint liability | |
what is the purpose of joint and several liability | joint and several liability is a way to reduce the risk of financial loss to one party to a contract it allows a plaintiff suing for damages to pursue full payment if necessary from the party with the deepest pockets if the others named cannot pay the bottom linein law joint and several liability makes all parties in a lawsuit responsible for damages up to the entire amount awarded that is if one party is unable to pay then the others named must pay more than their share until their joint financial obligation has been met | |
what is a joint and survivor annuity | a joint and survivor annuity is an insurance product designed primarily for retired couples who want a guaranteed monthly income that will continue for as long as either spouse lives annuities in general are investment choices that can be used to provide a regular stream of income during retirement an alternative to the joint and survivor annuity is the single life annuity which stops payment at the death of the annuitant a couple investing in a joint and survivor annuity has many options to consider a higher initial benefit will come with a reduction in the monthly payout for the survivor a lower benefit might be continued at the same level for the survivor understanding joint and survivor annuitiesanyone considering a joint and survivor annuity must first determine precisely how much the payments will be that depends on many factors including how much money they are investing the life expectancies of both individuals and whether the annuity is fixed or variable depending on investment returns 1there are other decisions that affect the numbers a typical joint and survivor annuity might reduce the monthly payment to the survivor by 30 to 50 the investors may however choose a somewhat lower payment that will continue unchanged for the lifetime of the survivor the prospective investor must also take a careful look at the fees and commission involved the cost of annuity fees averages 2 3 of the annuity s value and can go higher particularly in complex products 2 | |
when an annuity is sponsored by an employer the employer decides which payment options it will provide the options may include single life or joint and survivor options | however employer sponsored qualified plans must make the joint and survivor annuity the automatic choice for couples married at the time of retirement an individual may receive a single life annuity only with written notarized approval from the primary annuitant s current or depending on the divorce settlement former spouse 3there may also be provisions for making payments to a third party when both annuitants die before the monthly payments have exceeded the principal in these cases the money goes to the annuitants estate or to a named beneficiary if the annuity has an installment refund provision the insurance company must make monthly payments to the estate or beneficiary until the original value of the annuity is reached if an annuity has a cash refund provision the balance of the principal goes to the annuitants estate or a named beneficiary in a lump sum advantages of a joint and survivor annuitya joint and survivor annuity has the advantage of protecting annuitants from outliving their retirement savings a person who retires at 65 may anticipate living to age 80 and plan accordingly living to 90 or 100 is perfectly feasible these days but it requires a backup financial plan its greatest benefit may be its protection for surviving spouses and that aspect may be changing with the times historically annuities were most often offered through employers during much of the 20th century most wage earners were men who generally have lower life expectancies than women the joint annuity took care of their widows who might live years or even decades longer than their spouses the life expectancies of both spouses can play a significant part in deciding between a joint and survivor annuity and a single life annuity 4disadvantages of a joint and survivor annuitylike all annuities joint and survivor annuities will not provide a good return to a younger couple the benefit will be low and the fees will be high compared to other investment options such as exchange traded funds etfs immediate annuities make more sense after age 65 when a couple is retired or looking forward to retiring soon the stakes are changing too with marital trends for example same sex couples if they are about the same age will typically have similar life expectancies so they will not get as much benefit from a joint and survivor annuity as a couple did in the 20th century | |
what is a joint bond | a joint bond is sold with a guarantee of the payment of principal and interest by at least two parties in the case of default by the issuer the bondholders have the right to claim repayment by any and all of the issuing institutions corporations or individuals this shared responsibility reduces the risk to the investor but also generally means a lower rate of return on the investment understanding joint bondsa joint bond is most often issued when a corporate parent company is required to guarantee the obligations of a subsidiary business such instances are similar to a parent s decision to co sign a car loan for a child parent companies are typically larger firms that own a majority stake in one or more smaller subsidiaries in the same industry or complementary industries a subsidiary that wants to raise money for a capital project may not be able to do it alone or may be able to issue it only at a high rate of interest debt investors may be wary of a bond issued by a subsidiary especially if it does not have as high a credit rating as the parent company the parent company can step in to act as an additional guarantor on the debt the joint bond is also known as a joint and several bond federal home loan joint bondsanother example of a joint bond issuer is the federal home loan bank system fhlb the bank was founded by congress in 1932 in order to help finance the community banking system 12the fhlb office of finance issues joint bond security to fund the 11 federal home loan banks that make up its regional network this financing is then passed on to local financial institutions to support lending to home buyers farmers and small business owners 2the federal home loan bank s organizational structure of joint and several liability makes it unique among housing related government sponsored enterprises and helps it serve as a pillar of the nation s small business and home mortgage financing systems lessons from greecemany economists have argued that the european union should consider issuing joint bonds to strengthen the euro currency they point to the aftermath of the 2008 2009 economic crisis to illustrate the point in 2014 greece was mired in recession and could not take independent currency stimulus action to alleviate it because it has adopted the euro currency advocates of joint bonds argued that greece needed the support and credit of its fellow eurozone members so that it could pay its bills until growth resumed proposals for a european joint bond or a european common bond are floated intermittently the latest iteration called a european safe bond was proposed in 2018 by a committee chaired by irish central bank governor philip lane 3european banks and many governments within the eurozone could be supportive of such proposals since they would meet the demand for safe government debt previous proposals however have been blocked by germany german representatives are wary that a european joint bond would encourage fiscal irresponsibility in some of the poorer nations of the eurozone | |
what is joint credit | the term joint credit refers to any type of credit facility that is issued to two or more people based on their combined incomes assets and credit histories the parties involved share everything about the debt including the credit limit and the responsibility to repay it back to the lender joint credit can be used when one individual has little to no credit or a bad credit report and when two or more people need access to a large credit limit that they wouldn t qualify for individually understanding joint creditjoint credit is any type of debt that is owned and owed by two or more people two or more individuals may consider applying for joint credit if they re getting married or co signing a mortgage it is imperative to review all parties applying for joining credit combined financial planning will usually affect all parties credit scores consumers can take out joint credit on any number of accounts including mortgages loans credit cards and lines of credit locs in order to obtain joint credit each party must submit their personal information on a credit application these details include their names addresses dates of birth income social security numbers ssns and any other pertinent information each individual must also sign the application by signing the application each party gives the creditor their authorization to conduct a credit check having joint credit means each individual has equal access to the account this means anyone can make changes to the account whether that means lowering or increasing credit limits changing mailing addresses or adding additional users to the account but it also means that each party shares the responsibility to pay back the debt this can prove to be a problem if one person doesn t live up to their responsibility or runs up a credit card bill without paying so it s always a good idea for each party to discuss the possibility of joint credit and set up boundaries before they actually apply for an account despite the pitfalls are several reasons why joint credit is a good idea by combining their resources a couple may have access to a greater amount of credit than if they were to apply as individuals this would allow them to make bigger purchases and fund them together joint credit also comes in handy when one person has no credit history or a low credit score the joint account allows them access to a credit facility they wouldn t normally be able to obtain special considerationsjoint credit can become an issue and a huge concern in divorce proceedings while both may have contributed to the debts equally their agreements may see one partner taking responsibility for certain debts while the other ends up paying for the remaining debts it is also possible that former partners may still affect one another s credit even if the two are divorced closing a joint credit account can also be difficult especially when there s a balance outstanding even if a lender allows a credit card to be closed the balance usually must still be paid under the original terms one potential solution includes transferring a portion or all of the balance to a separate credit card types of joint creditco borrowers are any other borrowers added to an account their names are also listed on the credit application and supporting documentation as such their personal information credit history and income is used as part of the application process and help the lender determine whether the parties qualify when there are co borrowers on an account they all assume responsibility for the debt as with a co borrower an additional party signs on to be responsible for 100 of the bill but there s one key difference the co signer doesn t have access to the account the co signer may or may not have access to account information either if the original signer makes a late payment or defaults on the loan or account this negative history could be added to the co signers existing credit history joint credit vs authorized usersin contrast with a co signer an authorized user can use existing available credit on an account but has no financial liability to repay the debt while the initial party has already filled out the application obtained the credit and is liable for repayment an authorized user simply receives charging privileges while an authorized user is able to use a credit card the original account holder is liable for repayment adding authorized users to an existing credit card can help build credit assuming timely payments are made on the other hand an authorized user can also ruin the original party s credit score by racking up debt authorized users can get a boost in their own credit score if the original party regularly uses and makes timely payments on the account | |
what is joint endorsement | a joint endorsement can be required on a check presented for deposit or cashing that has been made out to two or more individuals the purpose of the joint endorsement is to prevent one individual from depositing or cashing a check without the knowledge or permission of the other person to whom the check is made out understanding joint endorsementrules on joint endorsements vary by state bank and even the type of check presented for example when checks are made out to a married couple and deposited into their joint account many banks will not require both spouses to endorse the check after all the money is going into an account to which they share access on the other hand most banks will require checks issued by the u s government such as tax refund checks to be jointly endorsed even for deposit into a joint account the details make a differencethe need for a joint endorsement can be determined by the way the check is written according to legal convention if the two payee names on the check are separated by the word and or any symbol or abbreviation of the word and then the bank can require joint endorsement thus a check made out to jane doe and john doe jane doe john doe or jane doe john doe would call for a joint endorsement on the other hand if the payee names on the check are separated by a simple comma such as jane doe john doe then either party could endorse the check note that all banks may not follow these conventions and could possibly demand a joint endorsement in any case in some instances both parties for a joint endorsement cannot be present together at the same time to endorse the check for example a recently divorced couple in which one of the partners has obtained a restraining order against the other might present a problem for the bank because it is difficult to verify or ask for signatures for a check in such cases a bank works with both parties independently or asks for a reissue of the joint check made out separately to each individual joint endorsements in landlord tenant transactionsthe issue of joint endorsements often comes up in landlord tenant relations because many living situations involve roommates who share bills and responsibilities but who are not married or otherwise related when a landlord returns a security deposit to tenants the check may be written out to both or all the tenants listed on the lease using some version of and between the names often the letters jt are appended to the names meaning joint tenants a problem arises when two unrelated roommates have separate bank accounts since the landlord s check can only be deposited into one account in this case the refund check must still be jointly endorsed by both tenants before it can be deposited in one of the tenants bank accounts the depositor would then presumably write a separate check back to the other tenant | |
what is joint endorsement | a joint endorsement can be required on a check presented for deposit or cashing that has been made out to two or more individuals the purpose of the joint endorsement is to prevent one individual from depositing or cashing a check without the knowledge or permission of the other person to whom the check is made out understanding joint endorsementrules on joint endorsements vary by state bank and even the type of check presented for example when checks are made out to a married couple and deposited into their joint account many banks will not require both spouses to endorse the check after all the money is going into an account to which they share access on the other hand most banks will require checks issued by the u s government such as tax refund checks to be jointly endorsed even for deposit into a joint account the details make a differencethe need for a joint endorsement can be determined by the way the check is written according to legal convention if the two payee names on the check are separated by the word and or any symbol or abbreviation of the word and then the bank can require joint endorsement thus a check made out to jane doe and john doe jane doe john doe or jane doe john doe would call for a joint endorsement on the other hand if the payee names on the check are separated by a simple comma such as jane doe john doe then either party could endorse the check note that all banks may not follow these conventions and could possibly demand a joint endorsement in any case in some instances both parties for a joint endorsement cannot be present together at the same time to endorse the check for example a recently divorced couple in which one of the partners has obtained a restraining order against the other might present a problem for the bank because it is difficult to verify or ask for signatures for a check in such cases a bank works with both parties independently or asks for a reissue of the joint check made out separately to each individual joint endorsements in landlord tenant transactionsthe issue of joint endorsements often comes up in landlord tenant relations because many living situations involve roommates who share bills and responsibilities but who are not married or otherwise related when a landlord returns a security deposit to tenants the check may be written out to both or all the tenants listed on the lease using some version of and between the names often the letters jt are appended to the names meaning joint tenants a problem arises when two unrelated roommates have separate bank accounts since the landlord s check can only be deposited into one account in this case the refund check must still be jointly endorsed by both tenants before it can be deposited in one of the tenants bank accounts the depositor would then presumably write a separate check back to the other tenant | |
what is a joint life payout | a joint life payout is a payment structure for pensions and retirement plans in which a surviving spouse continues to receive income after the account holder dies joint life also known as joint and survivor provides an alternative to a single life payout for which payments end with the account holder s death | |
how joint life payouts work | with a joint life payout product a pension or other retirement plan will first pay benefits to the account holder at the account holder s death payments continue for another named person usually their spouse since the pension will likely pay benefits for a longer period of time under a joint life option the amounts disbursed will be lower than the account holder would have received had they elected a single life payout however the account holder has the assurance that their spouse will still have money coming in after they die in some instances the designated survivor can be someone other than a spouse the plan may also allow multiple beneficiaries however if you are married and your spouse is not the primary beneficiary of at least 50 of the assets the spouse must consent in writing that another party will be the beneficiary similarly if you marry after establishing the joint life payout plan your spouse will receive 50 of the payout unless they consent to leave the current arrangement unchanged 1you could also buy your own joint and survivor annuity this insurance contract provides guaranteed income payments as long as either the account holder or the beneficiary remains alive the account holder deposits a large amount of cash with the annuity provider when the contract is signed so they do incur high up front costs predictable payments begin between 30 days and one year after establishing the annuity contract and continue during both parties lifetimes 2 | |
what payout option should i choose | in many cases the joint life option is the legally required default for married account holders they can only elect the single life payout option if their spouse agrees to the choice in writing 3 a spouse might agree to single life for example if they have sufficient retirement income of their own or they believe the account holder will outlive them so they wouldn t receive any payments as a survivor account holders and their spouses will often have several joint life options to choose from for example they may be able to elect a payout to the survivor that s the same amount as the account holder had been receiving more commonly the payout represents 50 or 75 of that amount the survivor may also be able to take a lump sum distribution when the first spouse dies the option they choose will also affect the account holder s payout the larger the spouse s future payout the lower the account holder s current payout will be 4joint life payouts refer to annuities and pension plans the term should not be confused with joint life insurance policies | |
what is joint life insurance | joint life insurance covers two people rather than one person while joint life insurance typically covers a married couple it may also be used by others such as domestic partners or two partners in a business joint life can be term or permanent insurance 5these policies can be structured in several ways a first to die policy pays when either person dies this might be useful for a young family where one person works outside the home and the other is a stay at home parent if one or the other of them dies the family could face financial hardship either because it no longer has money coming in from the working spouse or because the survivor must now pay someone to do the work previously done by the stay at home partner however two separate individual policies could serve the same purpose as a joint policy the other type of joint life insurance is second to die this policy does not pay out to the policy s beneficiaries until both policyholders are dead joint life policies provide a number of benefits since the premiums are based on insuring two lives rather than one they are usually less expensive than buying two separate policies they are also useful when one spouse has an underlying medical condition that would prevent that partner from obtaining coverage on their own though joint life policies may be less expensive than two individual policies they also come with additional risks including how to manage the policy if the couple decides to divorce 6 | |
are joint life payout products less expensive | no joint life payout products are more expensive than single life payout products annuity companies make smaller income payments on joint life products because they expect to make more total payments for two people rather than one if you want 3 000 you will need to pay more to do so under a joint life annuity versus a single life annuity 2 | |
when you payouts begin for a joint life annuity | the first payments are made within 30 days to one year after the annuity contract takes effect payments are often made monthly and continue while the annuitant and or the beneficiary remain alive depending on the payout option selected | |
is joint life insurance similar to joint life pension payouts or annuities | the only similarity is that all the products are designed to cover two individuals under the same contract otherwise annuities pension plans and life insurance policies are significantly different financial instruments pensions and annuities make payments while the covered individuals are alive whereas life insurance pays out after they pass away the bottom linea joint life payout option for pensions and retirement plans allows the surviving spouse or other beneficiary to continue receiving payments after the account holder dies joint life payout products are more expensive than single life offerings where payments end with the account holder s death you either need to accept a reduced income or pay more upfront to get the same monthly income as a single life product make sure you consider your options carefully when weighing joint life payout alternatives | |
what is a joint life with last survivor annuity | a joint life with last survivor annuity is an insurance product that provides an income for life to both partners in a marriage it also can allow for payments to a designated third party or beneficiary even after the death of one of the spouses or partners aside from providing an income that cannot be outlived essentially longevity insurance it also may be used as a way to leave a financial legacy to a beneficiary or a charitable cause a joint life with last survivor annuity may also be referred to as a joint and survivor annuity an annuity is a financial product that provides a set income stream typically used by retirees understanding joint life with last survivor annuitiesa joint life with last survivor annuity is by definition not term certain payments continue until both partners in a marriage die typically after one partner dies the survivor receives a smaller payment the exact amounts to be paid are specified in the contract it is also possible for an annuitant to designate a beneficiary who may or may not be the same person as the designated third party that third party would receive a payment that is triggered by the death of one of the spouses for example a couple might have a joint life with last survivor annuity that pays a 2 000 monthly benefit after one spouse dies half of that 2 000 may be reallocated to a third party beneficiary such as a child for the life of the remaining spouse as such a joint life with last survivor annuity may be used as a component of estate planning a joint life with last survivor annuity is sometimes called a joint and survivor annuity suitability considerationsa joint life with last survivor annuity is for married couples who want a surviving party to continue receiving benefits until the death of both individuals annuity buyers in this case will need to decide how much the surviving spouse will need financially common options provide for payouts at 100 of the original benefit 75 66 66 or 50 since a surviving spouse s living costs tend to be higher than half the living costs of two people many financial advisors and planners choose an income payment above 50 it should be noted that lower payments generally mean a higher death benefit of course if there are other sources of income in retirement a 50 payout may be adequate | |
what is joint owned property | joint owned property is any property held in the name of two or more parties these two parties could business partners or another combination of people who have a reason to own property together the matrimonial status of joint ownership of assets is when the two parties are husband and wife joint owned property may be held in one of several legal forms including joint tenancy tenancy by the entirety community property or in a trust | |
how joint owned property works | as noted above a joint owned property may be held in legal forms such as joint tenancy this is when two or more people have equal rights and obligations to the property they rent or own together until one partner passes away at this time the owner s interest passes to the survivors without probate tenancy by the entirety another joint owned property option is when the parties are husband and wife in this case each spouse has an equal and undivided interest in the property if one spouse dies the full title of the property automatically passes to the surviving spouse two additional forms of jointly owned property community property and trust also have distinct features a spouse can acquire community property marital property during a marriage this property such as a rental unit legally belongs to both partners as of march 2021 u s states with community property laws included arizona california idaho louisiana nevada new mexico texas washington and wisconsin also guam and puerto rico have community property legislation and alaska s law is optional for tax purposes each spouse may claim half of the total income earned from community property finally in a living trust spouses may create a joint option in which both individuals are grantors and trustees they may place individually or joint owned assets in these trusts either person may revoke the trust during their lifetime choosing the best form of ownership for joint property can simplify things if one of the owners passes away joint tenancy is commonly used to avoid probate a lengthy costly and public process of distributing the deceased s assets in court risks of joint owned propertyjoint or jointly owned property does not come without its risks although later in life individuals often desire to add others names to the title of their property as a means of estate planning without attorney fees this can bring added risks of embezzlement for example if an elderly individual is in cognitive decline they might succumb to adding a friend or relation to a joint bank account the individual will then have full withdrawal rights in addition once an individual adds another s name to the title of a piece of property this act is typically final and cannot be undone however there are certain exceptions that can be pursued through the courts such as in the case of fraud or financial exploitation of those deemed to be legally incompetent | |
what is joint probability | the term joint probability refers to a statistical measure that calculates the likelihood of two events occurring together and at the same point in time put simply a joint probability is the probability of event y occurring at the same time that event x occurs in order for joint probability to work both events must be independent of one another which means they aren t conditional or don t rely on each other joint probabilities can be visualized using venn diagrams formula and calculation of joint probabilitynotation for joint probability can take a few different forms the following formula represents the probability of events intersection p x y where x y two different events that intersect p x and y p x y the joint probability of x and y begin aligned p left x bigcap y right textbf where x y text two different events that intersect p x text and y p xy text the joint probability of x and y end aligned p x y where x y two different events that intersectp x and y p xy the joint probability of x and y although joint probability can help you determine the likelihood of two different events happening at the same time it does not indicate how the two events may influence each other | |
what does joint probability tell you | probability is a field closely related to statistics that deals with the likelihood of an event or phenomenon occurring it is quantified as a number between 0 and 1 where 0 indicates an impossible chance of occurrence and 1 denotes the certain outcome of an event for example the probability of drawing a red card from a deck of cards is 1 2 0 5 this means there is an equal chance of drawing a red and black card since there are 26 of each in a deck as such there is a 50 50 probability of drawing a red card versus a black card joint probability measures two events that happen at the same time it can only be applied to situations where more than one observation can occur at the same time so the joint probability of picking a card that is both red and 6 from a deck is p 6 red 2 52 1 26 since a deck of cards has two red sixes the six of hearts and the six of diamonds because the events red and 6 are independent you can also use the following formula to calculate the joint probability p 6 r e d p 6 p r e d 4 52 26 52 1 26 p 6 cap red p 6 times p red 4 52 times 26 52 1 26 p 6 red p 6 p red 4 52 26 52 1 26the symbol in a joint probability is referred to as an intersection the probability of event x and event y happening is the same thing as the point where x and y intersect therefore the joint probability is also called the intersection of two or more events a venn diagram is perhaps the best visual tool to explain an intersection from the venn above the point where both circles overlap is the intersection which has two observations the six of hearts and the six of diamonds joint probability vs conditional probabilityjoint probability should not be confused with conditional probability which is the probability that one event will happen given that another action or event happens the conditional probability formula is as follows p x g i v e n y or p x y p x given y text or p x y p x given y or p x y this is to say that the chance of one event happening is conditional on another event happening for example from a deck of cards the probability that you get a six given that you drew a red card is p 6 red 2 26 1 13 since there are two sixes out of 26 red cards joint probability only factors in the likelihood of both events occurring conditional probability can be used to calculate joint probability as seen in this formula p x y p x y p y p x cap y p x y times p y p x y p x y p y the probability that a and b occurs is the probability of x occurring given that y occurs multiplied by the probability that y occurs given this formula the probability of drawing a 6 and a red at the same time will be as follows p 6 r e d p 6 r e d p r e d 1 13 26 52 1 13 1 2 1 26 begin aligned p 6 cap red p 6 red times p red 1 13 times 26 52 1 13 times 1 2 1 26 end aligned p 6 red p 6 red p red 1 13 26 52 1 13 1 2 1 26 statisticians and analysts use joint probability as a tool when two or more observable events can occur simultaneously for instance joint probability can be used to estimate the likelihood of a drop in the dow jones industrial average djia accompanied by a drop in microsoft s share price or the chance that the value of oil rises at the same time the u s dollar weakens joint probability depends on the two events acting independently from one another to determine whether they are truly independent it s important to establish whether one s outcome affects the other if they do they are dependent which means they lead to conditional probability if they don t you end up with joint probability example of joint probabilitylet s highlight another example to show how joint probability works this example uses dice and we want to find out what the probability is that you ll roll a four on each die when you roll them remember there are six sides to each one in order to determine the joint probability we first need to determine the probability of each roll now we can use the joint probability formula noted above to figure out what the joint probability is for this event by multiplying each individual event together 1 6 x 1 6 1 36this means that there is a 1 36 chance of rolling two fours using a pair of dice | |
what does joint probability tell you | joint probability is a statistical measure that tells you the likelihood of two events taking place at the same time you can use it to determine | |
what are the conditions for joint proability | certain conditions must be met for joint probability to occur the first condition is that the two events in question must occur at the same time another condition is that both events must occur independently of one another as such the outcomes cannot impact each other can joint probability be greater than 1 no joint probability can never be greater than 1 joint probability falls between 0 and 1 where 0 denotes that the likelihood of two events occurring simultaneously is impossible while 1 indicates that their outcome is certain the bottom lineprobability refers to the likelihood that an event will take place but when two variables are involved you may have joint probability this is a statistical measure that can tell you whether two independent events are likely to occur at the same time it is an important metric for statisticians who use it to determine relationships between two sets of variables such as women and sports but one thing it doesn t indicate though is how the two influence each other | |
what is a joint return | a joint return is a tax return filed with the internal revenue service irs on the new simplified form 1040 as of 2018 by two married taxpayers whose filing status is married filing jointly mfj or by a widowed taxpayer whose filing status is qualifying widow or widower qw a joint return allows these taxpayers to combine their tax liability and report their income deductions and credits on the same joint return | |
how a joint return works | a joint return permits eligible taxpayers to figure out their taxes using favorable joint return tax brackets tax rates and tax benefits as a result married couples who file a joint return generally pay a lower overall tax than married couples who file two separate returns 1who is eligible to file a joint returnto file a joint return the taxpayers filing status must be either married filing jointly mfj or qualifying widow er qw to be eligible for the married filing jointly mfj filing status the taxpayers must be legally married to each other on or before the last day of the tax year and both must agree to file and must sign the joint return 2to qualify as qualifying widow er qw the taxpayer s spouse must have died in either of the two prior tax years and the taxpayer must maintain a household for a dependent child 2also nonresident aliens generally cannot file as married filing jointly if either spouse was a nonresident alien at any time during the tax year definition of married in a joint returnwhether or not taxpayers are considered married on the last day of the tax year is decided by the law of the applicable state or jurisdiction same sex marriages that are legally entered into are recognized for all federal tax purposes 3taxpayers who divorce or separate under a decree of divorce or separate maintenance that is final at any point during the tax year are considered unmarried for that entire year and cannot file a joint return 4benefits of a joint returntaxpayers who are married and not widowed must choose one of two filing statuses married filing jointly mfj or married filing separately mfs filing jointly is likely to result in less tax if one spouse earns most of the income and deductions will not be itemized 4 filing separately may result in less tax if both spouses earn the same income and if one or both have medical expenses casualty losses or miscellaneous deductions since joint and separate tax rates are likely to be the same and since adjusted gross income floors will be lower any time both spouses earn taxable income the tax should be figured both jointly and separately and a return filed using the status that provides the lowest tax 4 | |
what is the joint return test | the joint return test is one of the irs tests that potential dependents must pass in order to be claimed as such by another taxpayer according to the irs you generally can t claim a married person as a dependent if filing a joint return the joint return test stipulates that no dependent can file a joint return with a spouse and still be claimed as a dependent on someone else s return such as that of a parent or guardian there is however an exception to this rule because claiming dependents is valuable the irs institutes several tests such as the joint return test to make sure that dependents aren t being double counted understanding the joint return testaccording to the joint return test a taxpayer filing a joint return can be claimed as a dependent under only one condition that person and their spouse file the joint return only to claim a refund of income tax withheld or estimated tax paid a taxpayer may not count someone who is married and files their return with their spouse as a dependent even if that person makes no money during the tax year and lives in the taxpayer s house if their spouse made taxable income reported on their joint return the irs gives the following example you supported your 18 year old child who lived with you all year while your child s spouse was in the armed forces your child s spouse earned 35 000 for the year the couple files a joint return you can t claim your child as a dependent another example your 18 year old son and his 17 year old wife had 800 of wages from part time jobs and no other income they lived with you all year neither is required to file a tax return they don t have a child no taxes were taken out of your son s pay or his wife s pay however they file a joint return to claim an american opportunity credit of 124 and get a refund of that amount because claiming the american opportunity credit is their reason for filing the return they aren t filing it only to get a refund of income tax withheld or estimated tax paid the exception to the joint return test doesn t apply so you can t claim either of them as a dependent joint return test for claiming dependentsthe modern income tax was first introduced in 1913 and a deduction for dependents was added to the tax code four years later that congress has supported a deduction for dependents for so long is a reflection of its desire to support the option to have a large family while still maintaining the overall progressivity of the federal income tax regime the original income tax was quite progressive with only about the top 1 of incomes taxed but with that progressivity came a bias against large families which generally require more income to support congress has continued to support deductions for dependents ever since and made claiming dependents even more lucrative for some taxpayers with its 2018 tax reform legislation starting in 2018 taxpayers who can claim a dependent under the age of 17 will receive a tax credit of 2 000 per child up from 1 000 previously further congress raised the income level at which the credit phases out the credit now begins to phase out at 400 000 of income for married couples and 200 000 for singles compared with 2017 levels of 110 000 for married couples and 75 000 for singles this benefit is a particularly valuable part of the tax code for many filers because the child tax credit is a dollar for dollar reduction of tax liability rather than a deduction which lowers taxable income | |
what is a joint stock company | a joint stock company is a business owned by its investors with each investor owning a share of the company based on the amount that they ve invested it is a predecessor to the modern day corporation and other types of registered companies in the u s joint stock companies were created to finance endeavors that were too expensive for an individual or even a government to fund the owners of a joint stock company expected to share in its profits today u s companies are not organized as joint stock companies while one could describe a business with shareholders using the term joint stock company there is no such registration option instead businesses are organized as for example a corporation a partnership or a limited liability company llc | |
what is joint supply | joint supply is an economic term referring to a product or process that can yield two or more outputs common examples occur within the livestock industry cows can be utilized for milk beef and hide sheep can be utilized for meat milk products wool and sheepskin if the supply of cows increases so will the joint supply of dairy and beef products understanding joint supply | |
where joint supply exists the supply and demand for each product is linked to the others originating from the same source for example if demand increases for wool and sheep farmers therefore raise more animals for wool there will be a related increase in sheep meat production this increased production will lead to greater meat supply and potentially lower prices | in some cases the proportions of the joint products are nearly fixed such as with cotton and cottonseed in such cases proportions cannot be varied in other cases the proportion can be variable for example through cross breeding it is possible to breed sheep either for wool or for meat so the quantity of one can be increased at the expense of the other to a degree analysts keep a close eye on products in joint supply because investments in one can be significantly impacted by what happens with the other another important issue with joint supply products is the allocation of expenses since both products are derived from the same source it is often difficult to figure out how to divide up expenses it is not usually feasible to simply split the expenses down the middle in the case of two products because one product usually sells at a premium to the other an equal split will artificially deflate or inflate profits on one product or the other likewise randomly allocating expenses will produce artificial results to handle this on the business side there are usually pricing matrices that work backwards from the end products to establish costing for reporting purposes joint supply vs joint demandjoint demand isn t necessarily related to joint supply rather joint demand happens when demand for two goods is interdependent for example printers need ink to function similarly ink cartridges are of no use without a printer another example could be razors and razor blades or gasoline and motor oil basically joint demand is when you need two goods because they work together to provide a benefit for the consumer if two goods are in joint demand they will have a high and negative cross elasticity of demand in other words a fall in the price of ink may prompt an increase in demand for printers | |
what is joint tenancy | the term joint tenancy refers to a legal arrangement in which two or more people own a property together each with equal rights and obligations joint tenancies can be created by married and non married couples friends relatives and business associates this legal relationship creates what is known as a right of survivorship so if one owner dies their interest in the property is directly passed on to the surviving party or parties without having to go through probate or court system investopedia zoe hansen | |
how joint tenancy works | joint tenancy is a form of property ownership normally associated with real estate two or more parties come together at the same time to make a legally binding agreement with one another through a deed these parties may be relatives friends or even business associates for example let s say an unmarried couple purchases a house at the time of purchase they opt for joint tenancy the deed to the property will name the two owners as joint tenants since each party has a claim to the property they also share the benefits if they decide to rent out the home to another individual or if they sell the property each party is entitled to a 50 share in the profits but the relationship also means they are equally responsible for paying for the property including mortgage payments property taxes and maintenance if one fails to live up to the financial obligations the other party must assume responsibility this agreement also creates what s referred to as a right of survivorship this means that if one person dies the other party automatically assumes full ownership of the property this eliminates the need for probate or the transfer of a deceased person s assets to an estate probate courts decide the validity of a person s will and divide the assets up appropriately among the deceased s beneficiaries although joint tenancy is most closely associated with real estate ownership the broader legal concept of joint tenancy with right of survivorship can apply to a range of assets including businesses and brokerage accounts 1 a strong association with real estate exists because the term tenancy is seen as synonymous with owning or living in a home there is no need for the property to go through the probate system since a joint tenancy creates a right of survivorship creating joint tenancyin most cases there are four items that must be present when creating a joint tenancy note that not all jurisdictions may require these and in some cases other requirements exist to create a joint tenancy the four concepts revolve around time title interest and possession the requirement of time usually indicates that all joint tenants must acquire their ownership interests in the property simultaneously it does not necessarily mean that all joint tenants have to sign the same document at exactly the same moment but they should obtain their interests in the property from the same event for example if two people purchase a property together and both names appear on the same deed with the same date the unity of time is satisfied note that as ownership progresses changes to the ownership structure are common and natural for example should those two people no longer fraternize one may sever their ownership or be replaced by a new joint owner very broadly speaking joint tenancy most often occurs naturally at the start of an ownership agreement though it may change over time title requires that all joint tenants acquire their ownership interests through the same legal instrument or document in practical terms this means that if two or more individuals are buying a property together they should be listed as co owners on the same deed or other appropriate legal documentation for instance if three individuals are named as joint tenants in a single deed transferring the property to them joint tenancy is valid this requirement is critical in maintaining true ownership status should multiple ownership documents exist it may be difficult or inefficient to correctly identify not only who owns a property but when their ownership took place in addition because joint owners have shared financial interests in a property it is important that all joint owners are clearly defined in the event of financial distress interest refers to a joint owner s apportionment of the property interest ensures that each joint tenant holds an equal and undivided share in the property this means that all co owners have the same percentage of ownership for example in a joint tenancy with two individuals each joint tenant would have a 50 interest in a joint tenancy with three individuals each joint tenant would have a 33 33 interest and so on there are other forms of legal ownership where owner interest is not necessarily fair or equal in general for most real estate transactions unless otherwise explicitly stated and agreed to by all parties each joint owner will share in equal interest possession means that all joint tenants have an equal right to possess and use the entire property it implies that no joint tenant can claim exclusive rights to any specific part of the property instead all co owners have the right to access and use the entire property as a whole this concept distinguishes joint tenancy from other forms of co ownership like tenancy in common where each co owner may have distinct separate portions of the property in addition it solidifies the liability aspect of the property should something go wrong for example should substantial water damage occur in a single room all joint owners are often liable to share in those costs ignoring any explicit causes for damage or separate agreements financial implications of joint tenancyjoint tenancy in property ownership involves quite a number of financial aspects joint tenants hold an equal share of the property ensuring equal financial burden and benefits are shared among all co owners they also share the costs of property acquisition such as down payments closing costs and associated expenses post close joint owners are collectively responsible for mortgage payments and maintaining good credit standing property taxes are shared equally among all co owners regardless of individual contributions maintenance and repairs are also to be shared equally among joint owners with decisions regarding repairs and improvements made jointly and expenses divided equally income derived from the property should be shared equally among all joint tenants based on ownership interest percentages in addition gains and resulting capital gains taxes may apply if the property is sold with tax implications varying depending on local laws ownership duration and each joint tenant s share in the property severing joint tenancyjoint tenancy in property ownership can be severed through various methods a voluntary agreement allows all joint tenants to terminate the joint tenancy and convert it into a tenancy in common often through a written agreement or contract should all parties not agree this voluntary agreement often experiences headwinds and may not be able to be fully executed conveyance involves transferring or selling a joint tenant s share of the property to a third party who becomes a tenant in common with the remaining joint tenants in some cases the existing tenants may review or approve of the new owner e g consider partial ownership of professional sports teams that must adhere to a rigid review process with strict ownership requirements partition actions are legal proceedings that can be costly and time consuming and involuntary severance may be ordered by a court due to certain circumstances this may arise due to a dispute or conflicting interests among the joint tenants advantages and disadvantages of joint tenancyalthough joint tenancy has a number of advantages there are some distinct disadvantages that should also be considered before entering into the arrangement as mentioned earlier as long as one joint tenant survives it avoids the headaches of clearing the property through an estate via a will 2 typically a person s will upon death goes through probate which is a legal process whereby the courts review a will to validate it typically when a person dies their assets cannot be accessed or claimed by the survivor until probate releases them the probate process also helps determine how a deceased party s assets are distributed if the person doesn t name beneficiaries or doesn t have a will in place however the process can easily take months to sort out a joint tenancy avoids probate and the lengthy legal process that allows the joint tenant to take ownership of the assets immediately in addition to sharing the benefits of the property all of the parties in a joint tenancy share responsibility for the property for example one person in the couple can t take out a mortgage loan on the property and leave their partner with the debt the joint tenancy applies for all of the assets as well as the debts meaning if a loan is taken out on the property both are responsible for the debt divorce or marital issues can complicate a joint tenancy 3 as stated earlier all debts are owned by both parties and neither can sell their assets that are owned jointly without consent from their partner another disadvantage of joint tenancy can appear in the handling of the asset upon the death of one or more of the joint tenants joint tenancy gives all the rights to the survivor so even if the deceased was hoping to pass the value of the property to designated heirs there is no legal obligation for the survivor to honor that request joint tenancy avoids probate court when one of the tenants dieseven with no will or beneficiaries named the joint tenant inherits everything immediatelymarital issues can complicate and delay sale of assets since both tenants must agreejoint tenancy gives all assets to the partner not allowing the deceased to pass assets to heirsjoint tenancy vs tenancy in commonto avoid losing control of the disposition of the property upon death some joint owners opt for tenancy in common jtic instead of a joint tenancy tenancy in common allows for percentage based ownership and shares can be traded and tenants added throughout the life of the arrangement rather than just at inception in other words upon death the assets don t automatically go to the surviving partner as with joint tenancy instead the tenancy in common allows the assets to be distributed as stipulated in the decedent s will and local laws |
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