Busn (2.11.17)

Bob Kraft & The Jackson Family

A Patriots fan since their American Football League days, Kraft has been a season ticket holder since 1971, when the team moved to the then-Schaefer Stadium. In 1985, Kraft bought a 10-year option on Foxboro Raceway, a horse track adjacent to the stadium. The purchase prevented Patriots owner Billy Sullivan from holding non-Patriot events at Sullivan Stadium while races were being held. Kraft took advantage of the fact that the Sullivans owned the stadium, but not the surrounding land. It was the beginning of a quest to not only buy the stadium, but the Patriots as well. Sullivan's family was reeling from a series of bad investments, principally The Jackson Five 1984 Victory Tour, for which they had to pledge Sullivan Stadium as collateral. Those problems ultimately forced Sullivan to sell controlling interest to Victor Kiam in 1988. However, the stadium lapsed into bankruptcy

Bear Squeeze

A change in market conditions that forces pessimistic investors attempting to profit from price declines to buy back an investment at a higher price than they sold it for. A bear squeeze can be an intentional event created by certain players in the investment markets, usually central banks or market makers

Rubinomics

A combination of the words "Rubin" and "economics" that focuses on the impact of a balanced budget on long-term rates of interest. Rubinomics is named after Robert Rubin, the Secretary of the Treasury under former President Bill Clinton. This approach tends be concerned with the effect that deficits have on inflation over the long term

Zero Sum Market

A customer buying your product means they stop buying your competitor's products. This is clear for DSC, but often lacking in apparel categories, for instance

Fiscal Cliff

A fiscal cliff is a combination of expiring tax cuts and across-the-board government spending cuts scheduled to become effective Dec. 31, 2012

Living Trust

A living trust is a property interest created during a person's life that allows easy transfer of assets without going through the process of probate. A living trust is an agreement where the trustee holds the legal possession of a fund or assets that belong to another person, the beneficiary, and it is created while the person is alive. This is different compared to other types of trusts that are created through the person's will

Free Reserve

A measurement of a bank's reserves that is equal to the difference between borrowed reserves and excess reserves. This is the amount which the bank has available to lend to clients. A bank is required by federal law to hold a specific amount of reserves at any given time

Bid Whacker

A slang term for an investor who sells shares at or below the bid price. This is considered outside the norm, as sellers normally settle for a price between the bid and ask quotes

Net Borrowed Reserves

A statistic released in weekly Federal Reserve data showing the difference between the amount of money a bank has borrowed from the Fed and the cash reserves the bank holds above the required minimum

30 Second TV Ad Cost

A typical 30-second spot on cable TV costs about $15 per thousand views

VC Fund Fees

A typical fund might charge a management fee of 2 percent of total assets under management, plus a performance fee of 20 percent of all investment gains.

ADP (payroll)

ADP (payroll) can be a good indicator of job growth based on payroll payment reporting

AOL Verizon Sale

AOL sold to Verizon for roughly eight time EBITDA. Yahoo would be looking to sell at 4-5 times EBITDA.

Reg T

According to Regulation T, you may borrow up to 50% of the purchase price of securities that can be purchased on margin. This is known as the initial margin

Cash Value Insurance

Also known as permanent life insurance; Premiums include a death benefit and a plan to build savings within the policy; Two main types are whole life and universal life; Significantly more expensive than term life insurance

Larry Summers

American economist who is President Emeritus and Charles W. Eliot University Professor of Harvard University. In mid-2013, his name was widely floated as the potential successor to Ben Bernanke as the Chairman of the Federal Reserve, though after pushback from the left, Obama eventually nominated Federal Reserve Vice-Chairwoman, Janet Yellen for the position.

Lexicon Branding

American marketing firm founded in 1982 that focuses on selecting brand names for companies and products

ARPA

An agency of the United States Department of Defense, ARPA (Advanced Research Projects Agency) underwrote development for the precursor of the Internet, ARPANET

Principal agent problem

An example of how the principal-agent problem occurs between ratings agencies and the companies (the principals) that hire them to set a credit rating. Because a low rating will increase the cost of borrowing for the company, it has an incentive to structure its compensation of the rating agency so that the agency gives a higher rating than what may be deserved. The rating agency is less likely to be objective because it fears losing future business by being too strict

Bottom Fisher

An investor who looks for bargains among stocks whose prices have recently dropped dramatically. The investor believes that a price drop is temporary or is an overreaction to recent bad news and a recovery is soon to follow

Operation Twist

An operation twist is the name given to a Federal Reserve monetary policy operation that involves the purchase and sale of bonds

Enron Banking Conflicts of Interest

Analysts were offered large bonuses if they brought investment banking deals in, they did this buy providing strong buy recommendations for Enron, CFO then booked $50m deal with Merrill

Change of Control

Any change in the entity ownership occurring when any person or company, directly or indirectly, becomes the beneficial owner of voting equity shares of the entity (to the extent of more than 50 percent of the voting shares) or the rights to acquire such shares

Apple & Didi

Apple has invested in Didi (which is the largest ride sharing service in China) which will not only help in their autonomous driving project, but will help in their work with regulatory efforts in regards to their iTunes and stores

Automated Clearing House (ACH)

Automated Clearing House (ACH) - payroll and vendor payments

ARPU

Average revenue per user

Disney & Pixar Director Approval

Before Disney bought Pixar, Disney made an agreement that Disney had final Director approval if any director made less than $100M on prior film. The director who made Little Giant had to fight to get approved to direct The Incredibles

Berkshire Returns

Berkshire achieving a compound annual return of 21% since 1965, double that of the S&P 500.

Disney Movies in 1950's

Between 1950 and 1955, Disney made Cinderella, Peter Pan, and Lady and the Tramp

Evergreen Funding

British term that describes a revolving credit arrangement in which the borrower periodically renews the debt financing rather than having the debt reach maturity

Peter Chernin

CEO of the Chernin Group, which operates and invests in businesses in the media, entertainment, and technology sectors

Cash Advance

Cash advances are most commonly offered through credit card issuers. You need to have a credit card or another open line of credit to qualify for a cash advance. A cash advance acts like any other purchase being made through your credit, but instead of buying a good or service, you are buying cash. Repayment terms tend to be very similar to the terms on your card, although the interest rate on the cash advance loan may be higher.

China & Tech Government Regulation

China is known as a technological Galapagos island since Chinese firms are protected from external competition by government regulation and the Great Firewall, that protection means they don't need to innovate, but can thrive by copying business models developed in the West.

Constellation & Ballast Point Acquisition

Constellation Brands will acquire Ballast Point Brewing & Spirts (formed in 1996 in San Diego) for roughly $1 billion. Constellation has become one of the largest U.S. beer distributors in 2013 with its acquisition of U.S. distribution rights for top import Corona, along with several other Mexican beers plus a Mexican brewery for $5.3 billion from Belgium's Anhesuer-Busch InBev NV.

CEO of YouTube

Current CEO of YouTube, Susan Wojcicki, is the woman who rented her garage to Larry Page and Sergey Brin in 1998 when they were creating Google.

Autonomous Cars Insurance

Deloitte forecasts approximately $200B in personal-car-insurance premiums to hold steady for 8 years, then slide to about $40B by 2040

Disney's Underground System

Disneyland has an underground "utilidor system" where operations such as trash removal and food delivery can occur

AIG & CDO's

During the financial crisis, AIG started selling Credit Default Swaps which served as an insurance against Collaterized Debt Obligations (CDO) that would go bad. As an increasing number of investors bought Credit Default Swaps, AIG did not put money reserves aside in case of a CDO loss (Credit default swap industry was unregulated) at the same time huge cash bonuses were being payed out to executives when contracts were signed (employees were incentivized to issue CDS which encourage risk taking, but no risk adjusted performance

Tesla Founding Group

Eberhard and Tarpenning had Elon Musk's name in the back of their heads as a possible lead investor from the outset. They had both seen him speak a couple of years earlier at a Mars Society conference held at Stanford where Musk had laid out his vision of sending mice into space, and they got the impression that he thought a bit differently and would be open to the idea of an electric car. The idea to pitch Musk on Tesla Motors solidified when Tom Gage from AC Propulsion called Eberhard and told him that Musk was looking to fund something in the electric car arena

Ed Catmull

Ed Catmull, CEO of Pixar, attended University of Utah where he studied computer graphics and became close with one of his close classmates, Jim Clark, who later founded Silicon Graphics and Netscape. He was also in the same class as John Warnock, who co-founded Adobe.

Pixar Image Computer

Ed gave Alvy the responsibility to lead a team to set out to design a highly specialized standalone computer that had teh resolution and processing power to scan film, combine special-effects images with live-action footage and then record the final result back onto film. It took four years, but the device was built and named Pixar Image Computer. Pixar came from "Pixer" sounding like a fake spanish verb meaning to take pictures (Alex was intrigued by how certain nouns in English looked like Spanish verbs. Another team member countered with "Radar" that when it hit them, Pixer+Radar=Pixar

Enron Scandal

Enron had make to market book profits, paid off analysts, didn't produce a balance sheet, cfo made Lp investment groups that they hid debt in and had banks invest in those groups. They then would shut down California power grids thus skyrocketing price of energy, trade it and continued to push for deregulation of energy. Bush was president and ken lay CEO became head of dept of energy

ECJ

European Court Justice. the highest court in the European Union in matters of European Union Law

Fastest to $300M Market Cap

Facebook is the fastest company to reach $300M market cap

Inflation & Food/Energy Prices

Fluctuations in energy prices reflect a change in those prices over time relative to other prices. This means, for example, that increases in the price of oil, an important input of many other goods, will make oil-dependent goods and services (e.g., automobiles) more expensive relative to less oil-intensive goods and services (e.g., bicycles). The important point to note is that the energy price fluctuations displayed by the red line in Chart 1 often resulted from factors other than an underlying trend increase in general prices (the blue line). Therefore, the changes in energy prices are not necessarily a sign of inflation and, when they are included, can distort a trend increase in general prices. By measuring core inflation, economists are attempting to isolate what is happening to general prices without distraction from spikes in volatile energy prices

Foundation vs LLC

Foundation vs LLC - foundations have to give away a certain amount of money every year and disclose their gifts and activities in public filings. The LLC can remain totally private.

AWS

Fulfilled by Amazon, or FBA, as a physical analogue to Amazon Web Services. The cloud computing provider lets developers make software without ever having to touch a physical server or set foot in a data center. FBA lets merchants sell physical goods online without ever having to set foot in a warehouse or think about trucks or planes. I hate to use one of tech's most overused buzzwords, but FBA is a platform. And it's a lucrative one for Amazon. Without having to bear the inventory cost of holding onto items, FBA sales carry a richer profit margin for Amazon than goods it has stocked itself

Gates and Buffett Foundations (No LLC)

Gates and Buffett didn't do LLC because you don't get the income tax deduction. But Zuckerberg's income is modest compares to his wealth, so he's willing to give up the small income tax benefit for more control and less disclosure.

Goldman Sachs Retail Deposits

Goldman Sachs has started offering retail deposits because such liquid assets will help Goldman meet capital requirements

Goldman & CDO's

Goldman Sachs started to buy Credit Default Swaps from AIG as they continued to sell CDO's to its clients (while incentivizing employees to sell them too)

Google & PayDay Loans

Google has declared that it will no longer accept online ads for paydays loans - loans in the company's definition, that carry an annual interest rate of 36% or higher or that need to be paid back within 60 days

Google & Popup Ads

Google will start penalizing websites that use pop-up screens to promote their apps by placing them lower in search engine results, a move that some have called "app blocking". This move coincides with Google's effort to strive towards content being consumed online rather than apps which is where apple is focusing on

HBO & Dolan Family

HBO started as a result of the Dolan family bringing cable to New York city. Originally all TV was broadcasted over the air and received through antennas, cable required much work to lay fiber optic cables through apartments/buildings, users needed a reason to pay for the upgrade, so HBO started as a deluxe package included

HBO Investing in Movies

HBO started the movement of funding movies that contractually allowed them to be the only ones to stream the movie after DVD releas

Harvey Levin

Harvey Levin, TMZ's founder, got his start being a reporter for the L.A. Times on subjects surrounding law and politics. Levin, began celebrity investigative reporting when working for CBS during the O.J. Simpson case. Levin had gone to law school and had been a political activist in his earlier years. In the O.J. Simpson case, he got a glaring example of how differently the law was applied to celebrities and to ordinary citizens.

Henry Paulson & George W Bush

Henry Paulson was brought in by George W Bush as the Secretary of Treasury to help in the financial crisis efforts, even though he had previously been the CEO of Goldman Sachs, and was the senior advocate for prohibiting regulation of CDO market and lifting leverage limits of the banks

Texas Government Suing Families Near Wall

Hundred of property owners in Texas were sued by the federal government to build the wall (property covered both Texas and Mexico.

IMF vs World Bank

IMF exists primarily to stabilize exchange rates, while the World Bank's goal is to reduce poverty

Fed Inflation Rates

If the Fed sticks to its current inflation target of 2%, a poly rate of 0% would translate into a real cost of borrowing minus 2% (because the money debtors repay will be worth less than the money they borrowed)

Pixar Original Commercials

In 1990, Pixar started creating animated commercials for Trident gum and Tropicana and almost immediately won awards for the creative content while continuing to hone technical and storytelling skill

Yahoo & eBay (1999)

In 1999, Yahoo had been close to acquiring online auctions startup eBay. eBay's board and Yahoo's board approved the deal, but it fell apart when CEO Jeff Mallett demanded that eBay's CEO, Meg Whitman, report to him and not Koogle (COO). The deal fell apart afterwards.

Franked Investment Income

Income that is received as a tax-free distribution by one company in the U.K. from another. This income is typically tax-free to the receiving firm and is usually distributed in the form of a dividend. Franked investment income was introduced in the interest of avoiding double taxation of corporate income

Increases in LIBOR

Increases in LIBOR, a benchmark used to set rates for trillions of dollars worth of loan, usually reflect either strains on banks or expected rises in central banks' policy rates

Inflation with Low Interest Rates

Inflation and interest rates are linked, and frequently referenced in macroeconomics. Inflation refers to the rate at which prices for goods and services rises. In the United States, interest rates are determined by the Federal Reserve (sometimes called "the Fed"). In general, as interest rates are lowered, more people are able to borrow more money. The result is that consumers have more money to spend, causing the economy to grow and inflation to increase. The opposite holds true for rising interest rates. As interest rates are increased, consumers tend to save as returns are higher. With less disposal income to spend as a result of the increase in savings, the economy slows and inflation decreases

Exchange Rate & Tech Companies

Investors think the value of the dollar, which has gone up sharply as the Chinese economy has stumbled in the last year, will start to depreciate in 2016. This is good for tech companies, who complain that repricing their income abroad into expensive dollars eats into their revenue.

John Lasseter

John Lasseter won a Student Academy Award in 1979 for his short film The Lady and the Lamp, whose main character, a white desk lamp, would later evolve into our Pixar logo.

IPO Seasonality in June

June has an important seasonality effect in terms of IPOs as they can do their road shows beforehand so that investors can make it before 4th of July weekend

Kindle & E-Ink

Keeping an image on a kindle doesn't require any power at all since all the ink capsules on the screen are filled. Power is only needed to send a tiny electric field to rearrange the ink

Daniel Loeb & Buffett

Last year a hedge-funder, Daniel Loeb, attacked what he called a disconnect between Mr Buffett's words and his actions. "He thinks we should all pay more taxes but he loves avoiding them," he said. Mr Loeb was right: Berkshire's tax payments have shrunk relative to its profits. Last year the actual cash it paid to the taxman was equivalent to 13% of its pre-tax profits—this is probably the fairest measure of its burden—making it one of the lightest taxpayers among big firms

Jock Taxes & Publicly Funded Stadiums

Lawmakers and arena owners sometimes tout jock taxes as a way to publicly finance a new arena without passing the cost to constituents

LinkedIn Revenues

LinkedIn draws about 60% of its revenue from its largest division, Talent Solutions, a platform for recruiters to search for candidates. LinkedIn now has nearly 40,000 enterprise contracts under contract, which sets them apart from other social media companies that draw most of their revenue from advertising.

Space Mining

Many asteroids have so many tons of nickel, iron, cobalt, and water, that they can be estimated to be around $95 billion to $100 trillion per asteroid. Company like Google have invested in space mining companies such as Planetary Resources

Uber and Garages

Many believe that when Uber takes over in the place of car ownership in the future, many apartment buildings can remove parking garages (sometimes up to 20% of the cost of the building) which will in turn make housing cheaper

Paris Attacks & Economic Repercussions

Many economists worry that the recent Paris attacks will have large repercussions in terms of the commercial market among retail businesses (business affected: hotels, Air France, retailers, museums, amusements parks, department stores, restaurants). Economists believe that it will compound all the problems France already is facing.

E-Ink Phones

Many phone device makers are considering E Ink on cases of phones and other purposes as it could provide a constant dashboard to be lit and require no power at all, only when refreshed

E-Ink Price Tags

Many stores are considering E Ink on price tags at retail stores, especially grocery since it can require a simple change to load, rather than manually changing all the price tags in the store

pre-Internet Electronic Communications Privacy Act of 1986

Many times the law judges apply to tech cases is the pre-Internet Electronic Communications Privacy Act of 1986, but many companies feel that it is severely antiquated

Marriott & Starwood

Marriott International will acquire Starwood Hotels in a deal worth about $12.2 billion, that will create the world's largest hotels company with more than a million rooms globally (a total of $11.9B in stock and $340M in cash)

Merchant Cash Advance

Merchant Cash Advance business had a standard deal where it offered small businesses the option to borrow $9K and pay back $120 a day for six months, or a total of $14,500, equivalent to an interest rate of 250% a year, which is 10 times the legal limit in New York, which made it a crime in the 1960s to charge more than 25%. To get around this, merchant cash advance companies argue they aren't actually charging interest, they're buying the money businesses will make in the future, at a discount, as long as nobody uses the word "loan: it holds up in court. Merchant Cash Advance can't chase down individuals to collect if the business fails

Prime Funds

Money market funds that primarily invest in corporate debt securities

Triple Tax Free

Municipal bonds often offer triple-tax-free interest payments to investors because the U.S. Constitution forbids the federal government from taxing interest earned on loans to municipalities and states. The state or municipality issuing the bonds makes the bonds tax-free to encourage investment, and the remaining state or municipality offers tax-free status to the issuer at its particular level of government as a courtesy

NBA Agent Pricing

NBA players drafted in the first round don't pay agents, but 2nd round players pay agents around 3-4%.

AWS Customers

Nearly ⅔ of AWS' customers are startups, while the rest include big companies such as General Electric and Netflix.

Make Good

Networks must offer advertisers free airtime to offset lost viewership for booked ad placements

Neutral Rate

Neutral Rate - recibcukes the eagerness to invest and the willingness to save when the economy is in full bloom

Amnesty Clause (NBA)

No longer existing after new CBA agreement. clause negotiated into the newly ratified Collective Bargaining Agreement between the players and owners which allows a team to release one player from their roster and be free of any financial obligations to that player.

Non-Profits & Their Investment Regulations

Non-Profits are restricted in how they can invest their money to make sure it's keeping with their charitable mission. Zuckerberg's LLC is free to invest in just about anything it wants and expects to earn profits on those investments

NGO

Non-government organization

Non-Profits & Lobbying Rules

Non-profits are limited in the amount of money they can spend on lobbying, and they can't give to political campaigns. Zuck's LLC aims to "participate in policy" and shape debates"

Amazon & 3rd Party Sellers

Only about 3.4% of what you see for sale on Amazon is sold by Amazon itself. The other nearly 97% comes from third-party sellers

Unicorn IPOs in 2015

Only seven tech startups valued at more than $1 billion privately went public in 2015.

Google's Tax Rate

Over the past 3 years, Google's effective tax rate on Iits non-US profits has remained about 7%.

OTT

Over the top, delivery of audio, video, and other media over the Internet without the involvement of an ISP

PayPal Origin

PayPal was established in December 1998 as Confinity, a company that developed security software for handheld devices founded by Max Levchin, Peter Thiel, Luke Nosek and Ken Howery. PayPal was developed and launched as a money transfer service at Confinity in 1999, funded by John Malloy from BlueRun Ventures. In March 2000, Confinity merged with X.com, an online banking company founded by Elon Musk.Musk was optimistic about the future success of the money transfer business Confinity was developing.Musk and then-president and CEO of X.com, Bill Harris, disagreed on this point and Harris left the company in May 2000. In October of that year, Musk made the decision that X.com would terminate its other Internet banking operations and focus on the PayPal money service. The X.com company was then renamed PayPal in 2001, and expanded rapidly throughout the year until company executives decided to take PayPal public in 2002. Paypal's IPO listed under the ticker PYPL at $13 per share and ended up generating over $61 million. Shortly after PayPal's IPO, the company was acquired by eBay in July 2002 for $1.5 billion

Payday Loan

Payday loans are so-named because of a tendency for the funds to be borrowed on a post-dated check cashed on the borrower's upcoming payday. These loans are designed to be quick and easy, and they generally have very limited qualification loan requirements. These are usually options if you do not have credit cards or if you need to borrow more than your credit card balance or limit allows.

PIK Dividend

Payment in kind, the use of a good or service as payment instead of cash (farmhand gets room as a part of salary). A financial instrument that pays interest or dividends to investors of bonds, notes or preferred stock with additional debt or equity instead of cash. Payment-in-kind securities are attractive to companies who would prefer not to make cash outlays. They are often used in leveraged buyouts

Presidential Directive 20

Presidential Directive 20 - provides a framework for U.S. cybersecurity by establishing principles and processes. Signed by Obama in October 2012, this directive supersedes National Security Presidential Directive NSPD-38. Integrating cyber tools with those of national security. Classified and unreleased by the NSA, NSPD-54 was authorized by George W. Bush. It gives the U.S. government power to conduct surveillance through monitoring. Its existence was made public in June 2013 by former intelligence NSA infrastructure analyst Edward Snowden

Product Placement Pricing in Movies

Product placement sponsors typically require 600M media impressions and $10M in box office revenue to fulfill contractual payments in movies

Trump Tax Loss being forgiven with Borrowed Money

Say a developer put down $1 million of his own money and borrowed $99 million to buy and develop a property through a legal entity in which he was the general partner. Eventually the venture fails. The developer would still owe the lender money. But in the 1990s lenders often forgave debt on a failed property because it otherwise would have messed up their balance sheets. Once the debt was forgiven, the law (since changed) let the developer claim a tax loss for the full $100 million on the property, even though he only put $1 million of his own money on the line

Sell in May and Go Away

Sell in May and Go Away - well-known trading adage that warns investors to sell their stock holdings in May to avoid a seasonal decline in equity markets. The "sell in May and go away" strategy is that an investor who sells his or her stock holdings in May and gets back into the equity market in November - thereby avoiding the typically volatile May-October period - would be much better off than an investor who stays in equities throughout the year

Sweep Week

Seven-day diaries (or eight-day diaries in homes with DVRs) are mailed to homes to keep a tally of what is watched on each television set and by whom (sent by Nielsen)

Oil Pirates

Shell Oil claims that they lose about $6 billion worth of oil from pirates who take pipelines from refineries and sell in the cities

Puerto Rico Tax Break Expiration

Since 2006, many businesses and people have been leaving Puerto Rico because of a tax break that expired, which has led to Puerto Rico being in $422M in debt

Microsoft vs US Government over Emails

Since 2013, Microsoft has been engaged in a pivotal battle with the U.S. government over e-mail stored on one of its company servers in Ireland. The government's attorneys say the U.S. simply wants evidence linked to a narcotics case.

Ankle Biter

Slang term for a stock with low market capitalization. An ankle biter, generally, is a stock that has a market capitalization of less than $500 million. Such stocks are also referred to as micro-cap or small-cap stocks

Sponsored Snapchat Lenses

Snapchat will start pushing "sponsored lenses" later this month to brands, which can pay $450,000 for a lens on a normal day or $750,000 on a "peak day" — basically a holiday — like Halloween or Thanksgiving

Sotheby's art/historical auction market

Sotheby's art/historical auction market releases reports that often can be utilized as an indicator of growing wealth

Stichting

Stichtings, which mean "foundations" in Dutch, have been around for hundreds of years, primarily used by Dutch charities. During the World War II, Dutch companies transferred their ownership to stichtings based in the Dutch Antilles in the Caribbean to protect assets from the German occupiers. More recently, stichtings have become a tool of choice for multinational corporations to protect against a variety of perceived ills, anything from hostile takeovers to unwanted taxes to international sanctions. Their key attribute is that stichtings, often referred to as orphan foundations, don't have any legal owners. That means they can be used to put money or other assets outside the reach of government authorities, competitors or shareholders. The stichting's purpose and the responsibilities of its board of directors can be tailored to the vehicle's needs

Terry Semel

Terry Semel was co-CEO at Warner Brother Studios (for 24 years) and worked alongside Jeff Weiner who at the time was creating Warner Brothers' online presence. When Terry Semel was asked to become CEO of Yahoo, Terry recruited Jeff to become head of Corporate Development

NBA TV Deal distribution

The 30 franchises are obliged to pay 50 percent of designated basketball-related revenue to the league's players. With $2.66 billion in television riches pouring into the league for each of the next nine years, would critics of these collectively bargained payouts prefer the money remain in the hands of the owners?

AIG Bailout

The AIG bailout cost taxpayers $150 billion, of which $61 billion had to be paid to Goldman Sachs the next day since they were the largest holder of Credit Default Swaps.

NSA Repository

The NSA has built the world's largest repository for intercepted communications in Bluffdale, Utah

OPEC

The Organization of Petroleum Exporting Countries (OPEC) remains the only group that can affect the price of oil by purposely raising or lowering output.

SEC & Oil Reserves

The U.S. Securities and Exchange Commission requires drillers to calculate the value of their oil reserves every year using average prices from the first trading days in each of the previous 12 months. Because oil didn't start its freefall to about $45 till after the OPEC meeting in late November, companies in their latest regulatory filings used $95 a barrel to figure out how much oil they could profitably produce and what it's worth. Of the 12 days that went into the fourth-quarter average, crude was above $90 a barrel on 10 of them

Cigarette Ad Ban

The U.S. banned cigarette ads on TV and radio in 1971.

Downsides to Buybacks

The crucial flaw in buybacks is that they reward sellers of a company's stock over its long-term holders. That's because a company announcing a repurchase program usually sees its stock price pop in the short term. But passive investors, such as index funds, and other long-term holders gain little from the programs

Alcohol TV Ban

The liquor industry had a self-imposed ban on advertising on TV until 1996. Shortly after prohibition, TV became a popular advertising vehicle, and there were only 3 major networks, with mostly family oriented programming. Liquor industry chose not to advertise, this is part of the reason beer gained tremendous market share. In 2011, liquor companies started to truly advertise on all network television

Dispenaries & Banks

The security industry has significantly increased with the opening of dispensaries since all transactions are typically made in cash since the banks do not want to risk handling transactions that are against federal law.

China Welfare

The welfare of the older generation rests on the shoulders of one child (as a result of the one child policy in China). This has resulted in the male population having more financial struggle than previous generations which had 3-4 children sharing the responsibility. In Beijing, the male population is much higher than females as a result of this policy, so it is very hard to find a girlfriend. There is a mass market for match making where males essentially market themselves to women based on financial wealth.

Theranos Claims

Theranos claim they can conduct reliable testing for 50 to 80% less than Medicare reimbursement rates (Arizona would save $2.2 billion) alone, where the company has a presence in 40 Walgreens pharmacies.

Theranos Controversy

Theranos is under fire after reports claimed that it cheated on routine proficiency tests (which help federal regulators determine if a particular lab is producing accurate results, and Theranos wasn't even using its own products and technology to analyze most of the tests.

Indonesia Smoking Culture

There are around 67 million smokers in Indonesia, a country with no restrictions on the tobacco industry, and where many U.S companies have increased investment. The majority of children smoke, with advertisers reaching kids by sponsoring public playgrounds.

Carried Interest Tax Loopholes

There are tax loopholes that allow private equity operators, hedge fund managers, and real estate partners to convert carried interest or ordinary income into capital gains, which are taxed at a lower rate. With the Carried Interest tax loophole, instead of taking a fee for their management services (which would be taxed as ordinary income), people who earn carried interest take a percentage of assets under management and a percentage of the eventual profits, a formula described as "two and twenty", the percentage of profits is taxed at the lower capital gains rate

Panama Papers

There aren't many Americans in the Panama Papers since Americans can form shell companies right in Wyoming, Delaware, or Nevada and have no need to go to Panama to form a shell company to use for illicit activities

Mutual Fund Writing Down Pre IPO Companies

These reports are closely watched by tech startups and their investors because they provide a window into how big money managers value private stocks. There are no hard rules for how mutual funds mark their private tech shares, but each typically uses a mix of the startup's financial information, the market values of publicly traded rivals, and the prices paid previously for the startup's shares. When companies authorize additional shares to pay employees and management, that also creates "dilution," or a decrease in how much of the company a shareholder owns when new stock is issued. That effect is starting to push others on Wall Street to lower their price projections for tech company stocks. Mr. May of Citigroup lowered his price targets this month on Google, Facebook, Amazon, Netflix, eBay, Yahoo and Twitter to "fully capture the likely ongoing dilution from future share grants as part of employee compensation"

Non-Bird Exception

This particular exception allows teams to re-sign a player at 120% of his previous salary or 120% of the NBA minimum, whichever is greater. The maximum length of a Non-Bird Exception contract is four years (the previous CBA set the maximum contract length at 6 years). Like the other Larry Bird exceptions, this exception may only be used by a team to re-sign their own free agents, not another team's free agents. This gives teams a slight advantage in signing their own players, as they are allowed to go over salary cap without penalty. Another interested team may incur luxury tax penalties for signing the player if it puts them over the salary cap

NBA TV Deal

This startling redistribution of wealth is a product of a TV rights extension that will go into effect next season, under which ESPN and Turner (which carries games on TNT) are paying the league $24 billion over nine years — about a 180 percent increase over the last contract. The enormous jump was seen as a reflection of the general value of live sports in an age of DVR and YouTube clips and specifically of the appeal of a star-stocked, exciting league.

Kleiner Perkins & WSJ Piece

Thomas Perkins broke with Kleiner Perkins in 2014 after writing an opinion piece in the WSJ in which he compared the "progressive war on the 1%" to the persecution of Jews in Nazi Germany

Uber & Parking Spots

Uber proponents argue that it makes housing much more affordable since in densely populated cities, parking spots can add up to 30% of the cost of rent

Largest Oil Reserves in the World

Venezuela has the largest oil reserves in the world, depends on higher prices to keep its economy afloat, but with oil prices tanking

Vinod Khosla

Vinod Khosla founded Sun Microsystems

Virgin Airlines

Virgin has entered the market with new planes, but can make up for it by taking the most profitable routes from San Fran to New York, while United has to take many unprofitable routes, leading them to not include features like power or internet that can be capital intensive

Distressed Sale

When property, stocks or other assets are sold in an urgent manner, often at a loss

Death from Negligence Payout

When there is a wrongful death case where someone dies because of the negligence of another person, the average award to the family members is $3-$3.5M

Living Trust vs Will

While a trust sounds appealing, there are drawbacks. A living trust is more expensive to set up than a typical will because it must be actively managed after it is created. Most importantly, however, a living trust is useless unless it is funded. A living trust only can control those assets that have been placed into it. If your assets have not been transferred or if you die without funding the trust, the trust will be of no benefit as your estate will still be subject to probate and there may be significant estate tax issues

LucasFilm & Birth of Pixar

With the success of Star Wars, many A-List celebrities/directors came to LucasFilm to see what development was going on. Ed gave a tour to some people and a man named John Lasseter pitched The Brave Little Toaster. He was working at Disney and was going to pitch the story to them, but soon lost his job right after.

WordPress

WordPress initially started as an open source software that allowed users to easily crest websites that had the ability to meet the web standard (meaning it could run on different web browsers).

Agricultural Drones

Yamaha has released agricultural drones that can spray a vineyard as much as five times faster than workers using tractors

Zenefits

Zenefits is like a digital health insurance brokers, giving its software away and making money by charging insurers a fee when companies use it to pick their plans.

Zenefits Controversy

Zenefits ousted it's CEO partially because of a program he called "the Macro" which made it look like employees were watching legally mandated online training when they weren't, helping them avoid 52 hours of required learning for health insurance policies. Zenefits had many issues around compliance, along with unlicensed Zenefits brokers selling insurance.

Zuckerberg LLC Foundation

Zuckerberg can change the amount he funds the LLC whenever he chooses. He announced $45 billion, but that can change at any time. When you give money to a Foundation, you can't get it back.

Tea Party

a US political party that emerged from a movement of conservatives protesting the federal government in 2009

Buyback Mirage

a company's overall profit growth is unaffected by share buybacks. And comparing increases in earnings per share with real profit growth reveals the impact that buybacks have on that particular measure.

Credit Default Swap

a financial contract whereby a buyer of corporate or sovereign debt in the form of bonds attempts to eliminate possible loss arising from default by the issuer of the bonds. This is achieved by the issuer of the bonds insuring the buyer's potential losses as part of the agreement.

Special Districts

a form of local government created by a local community to meet a specific need. Inadequate tax bases and competing demands for existing taxes make it hard for cities and counties to provide all the services their citizens desire. Smaller local governments that collect tax money to handle one specific task. Almost impossible to get rid or dissolve, with little supervision

A409 Valuation

a formal report that tells you the value of your company's common stock. When you give stock options to your employees, you are giving them the option to buy equity in your company in the future at a price (the "strike price") that is determined today

Vulture Fund

a fund that invests in companies or properties that are performing poorly and may therefore be undervalued

Actuary

a person who compiles and analyzes statistics and uses them to calculate insurance risks and premiums

Bourse

a stock exchange

SPV (Special Purpose Vehicle)

a subsidiary company with an asset/liability structure and legal status that makes its obligations secure even if the parent company goes bankrupt. 2. A subsidiary corporation designed to serve as a counterparty for swaps and other credit sensitive derivative instruments.

Double Trigger

acceleration clause requires two events to trigger vesting acceleration. One event is the sale or merger of the company, and the other is usually termination of the employee without cause

Living Will

allows your to specify whether or not to be kept on artificial life support

Crony Capitalism

an economy in which success in business depends on close relationships between business people and government officials. It may be exhibited by favoritism in the distribution of legal permits, government grants, special tax breaks, or other forms of state interventionism

RFP (advertising)

an email from the advertiser or agency inviting a publisher to submit a proposal for an upcoming advertising campaign

Intentionally Defective Grantor Trust

an estate planning tool used to freeze certain assets of an individual for estate tax purposes, but not for income tax purposes. The intentionally defective trust is created as a grantor trust with a purposeful flaw that ensures that the individual continues to pay income taxes, as income tax laws will not recognize that assets have been transferred away from the individual. The beneficiary of an IDGT is typically children or grandchildren, who will receive assets that have been able to grow without reductions for income taxes, which have been paid by the grantor. The IDGT can be a very effective estate planning tool if structured properly, allowing a person to lower his taxable estate while gifting assets to beneficiaries at a locked-in value. The grantor (creator) of the trust can also lower his taxable estate by paying income taxes on the trust assets, essentially gifting extra wealth to beneficiary

Clawback Clause

any money or benefits that have been given out but need to be returned due to special circumstances or events, which are mentioned in a contract (Executive pay/bonus being returned due to a fraudulent case)

Billboard Hot 100

based off of Radio Songs (a Nielsen Audio measure of terrestrial and satellite airplay), Streaming Songs (a measure of online traffic measured by the traditional music track service Nielsen SoundScan), and Digital Songs, a measure of online sales, also measured by SoundScan

Charles Keating

best known for his role in the saving and loan crisis of the late 1980s. In the 1980s, Keating ran American Continental Corporation and the Lincoln Saving and Loan Association, and took advantage of loosened restrictions on banking investments. His enterprises began to suffer financial problems and were investigated by federal regulators. His financial contributions to, and requests for regulatory intervention from five sitting U.S. senators led to those legislators being dubbed the "Keating Five". When Lincoln failed in 1989, it cost the federal government over $3 billion and about 23,000 customers were left with worthless bonds. In the early 1990s, Keating was convicted in both federal and state courts of many counts of fraud, racketeering, and conspiracy. He served four and a half years in prison before those convictions were overturned in 1996. In 1999, he pleaded guilty to a more limited set of wire fraud, and bankruptcy fraud counts, and was sentenced to the time he had already served. Keating spent his final years in low-profile real estate activities until his death in 2014

Transfer Pricing

charging one affiliate for using intangible assets (such as brands, intellectual property or business services) said to originate in another part of the company

Dead Hand Provision

dead hand provision states that only the original directors who put the provision into place can dismantle the pill, so any new directors are prevented from interfering

Trickle Down Economics

decreasing marginal and capital gains tax rates - especially for corporations, investors and entrepreneurs - can stimulate production in the overall economy. According to trickle-down theory proponents, this stimulus leads to economic growth and wealth creation that benefits everyone, not just those who pay the lower tax rates

Xerox PARC

distinguished R&D lab in Palo Alto in the 70s

Matching Principle

expenses are recorded when incurred, not when cash is paid out

Cash for Refrigerators

federal energy efficiency program introduced in the fall of 2009. Commonly referred to as cash for refrigerators, in reference to the cash for clunkers program that operated during the summer of 2009, the program offers U.S. customers a rebate of up to $200 when buying a new, energy efficient home appliance

Internet Tax Freedom Act

forbids states and cities from imposing discriminatory internet-only taxes (Netflix tax in Chicago)

Hadoop

free Java-based programming framework that supports processing of large data sets

Full Ratchet Provision

full ratchet anti-dilution provision ensures that current investors, or shareholders, are able to maintain their same percentage of ownership should a company create additional offerings. It is considered an anti-dilution provision since the intent is to prevent an original shareholder's stake from being diluted by the creation of new securities.

Theranos

goal to make getting a blood test as fast and as simple as checking your bank account balance, which would mean anyone and anywhere could have access to information about their health and risk of disease anytime they want without a prescription. Charges $2.60 for a glucose test and $59.95 for a range of STDs, and posts all prices online, a level of transparency no tradition lab company matches.

Pensions Going Away

if we're moving from firm to firm, we need a pension system that can move with us, and that's why we've migrated by large from these old-style defined benefit pensions that stay at one firm, to build up as you live at that firm and that do not migrate with you, to a new defined contribution pension that you can take with you, that you can roll over to either a new firm or you can roll over to an IRA

Intestate

if you don't have a will, the state will distribute your assets

A Rising Tide Floats All Boats

improvements in the general economy will benefit all participants in that economy

Michael Dukakis & Willie Horton

in 1986, a convicted felon named Willie Horton — who was serving a life sentence for murder — was released from a Massachusetts prison on a weekend furlough program, during which time he escaped and raped a woman. Then-governor Michael Dukakis had supported the prison furlough program, and when he ran for President in 1988, his opponent, George H. W. Bush, used that to his advantage. The "Revolving Door" ad never mentions Horton by name, but the connection was clear and the ad received considerable news coverage

Co-Pay

in regards to health insurance, paying a set amount per medical visit

Accrued Revenue

income a company has earned, but not yet invoiced and/or received. It comes from accrual accounting, which requires income and expenses to be booked in the period they are earned or incurred

Jock Tax

income tax levied against visitors to a city or state who earn money in that jurisdiction

Reinsurers

insurance companies unload some of their risk by paying premiums to reinsurers, a low-profile corner of the industry that serves as insurance for insurers. Quickly being disrupted by catastrophe bonds

Effect of Fed Increasing Interest Rates

interest rates can affect stock valuations, the cost of financing a home and whether companies will take on big new projects, making the central bank the perpetual center of market attention.

Catastrophe Bonds (Cat Bond)

invented in the early 90's to help insurance companies mitigate the risk of disasters such as hurricanes and earthquakes. Investors are paid relatively high interest rates but lose their principal if disaster hits

Dvorak

keyboard layout that is more efficient, faster, and more comfortable than the standard QWERTY layout. It has 70% of the most commonly used letters positioned in the home row, QWERTY has only 32%, so your fingers move less

Sherman Antitrust Act

landmark federal statute in the history of United States antitrust law (or "competition law") passed by Congress in 1890

Doorbuster

marketing and sales strategy retailers use to get a high volume of customers into their stores

Mark to Market Actg

measure of the fair value of accounts that can change over time, such as assets and liabilities. Mark to market aims to provide a realistic appraisal of an institution's or company's current financial situation

Origin of the REIT

merchants raised money for the Boston Pier in 1772, the merchants owned the land together and shared the rent. It pioneered the REIT industry which has become a legal structure that owns, or finances, property that generates income. It pays no taxes itself but has to distribute over 90% of earnings to shareholders.

501(c)

most common type of tax-exempt nonprofit organization falls under category 501(c)(3), whereby a nonprofit organization is exempt from federal income tax if its activities have the following purposes: charitable, religious, educational, scientific, literary, testing for public safety, fostering amateur sports, etc. 501c's have become popular for wealthy individuals who make anonymous donations that can then be put towards a political campaign (as long as the organization spends 51% of their donations on a wealthfare program. Politicians are not allowed to work with the organization, typically the organization will use donations for smear campaigns/commercials

MVPD

multichannel video program distributor (comcast, AT&T, Cox)

Exxon Valdez

oil spill occurred in Prince William Sound, Alaska, on March 24, 1989, when Exxon Valdez, an oil tanker bound for Long Beach, California, struck Prince William Sound's Bligh Reef

Fox Trot Economy

pattern of economic growth where periods of rapid expansion are followed by periods of slow growth

Irrational Exuberance

phrase used by the then-Fed Reserve chairman, Alan Greenspon, in a speech during the Dot-Com bubble of the 1990s. The phrase was interpreted as a warning that the market might be somewhat overvalued.

Ivan Sutherland

pioneers of interactive computer graphics, taught Ed Catmull, Jim Clark, and Adobe founder. In 1968, he co-created what is widely believed to be the first virtual reality head-mounted display system, The Sword of Damocles.

Two-Way Contract (NBA)

professional sports contract which stipulates that an athlete's salary is dependent upon the league (D-league or NBA) in which the athlete is assigned to play. This is opposed to a one-way contract that would pay the same salary regardless of where the athlete is assigned to play

Blockchain

public ledger of all Bitcoin transactions that have ever been executed. It is constantly growing as 'completed' blocks are added to it with a new set of recordings. The blocks are added to the blockchain in a linear, chronological order

P.O. (Procurement)

purchase order

Reverse Stock Split

results in a smaller number of shares

Inside Sales

sale of products or services by sales personnel who reach customers by phone or online, rather than traveling to meet them face-to-face

Assignable Lease

saleable remaining portion of a lease that a licensee wishes to sell, the value of the lease being gauged on the viability of the business. A number of factors go into calculating this, such as length of remaining lease, profit, rent, area, condition etc

Robin Hood Tax

sales tax on speculative Wall Street trading. A small tax, 50 cents per $100, on trading in stocks, and even smaller assessments on bonds, derivatives and currencies, could raise hundreds of billions of dollars each year in the US alone

En banc

session is a session in which a case is heard before all the judges of a court (before the entire bench) rather than by a panel selected from them

Carried Interest

share of any profits that the general partners of private equity and hedge funds receive as compensation, despite not contributing any initial funds. This method of compensation seeks to motivate the general partner (fund manager) to work toward improving the fund's performance. Traditionally, the amount of carried interest comes out to around 20-25% of the fund's annual profit. While all funds tend to have a small management fee, the management fee is meant to only cover the costs of managing the fund, with the exception of compensating the fund manager

Carried Interest

share of any profits that the general partners of private equity and hedge funds receive as compensation, regardless of whether or not they contributed any initial funds

Casino Finance

slang term for an investment strategy that is considered extremely risky. Casino finance refers to casinos and gambling, where players may have little to no control over the outcome of their bets.

Dry Powder

slang term referring to marketable securities that are highly liquid and considered cash-like

Github

software development tool that provides access control and several collaboration features such as bug tracking, feature requests, task management, and wikis for every project

Chaos Monkey

software tool that was developed by Netflix engineers to test the resiliency and recoverability of their Amazon Web Services (AWS). The software simulates failures of instances of services running within Auto Scaling Groups (ASG) by shutting down one or more of the virtual machines

Fortune 500 Pacing

successful new companies reach Fortune 500 scale more than twice as fast as they did two decades ago

Anatolian Tigers

term is also used to refer to the many successful entrepreneurs from these cities, as well as to the emerging Turkish middle class

Trading Averages of Companies

the average of the S&P 500 index trades at an average multiple of 17 times earnings

Schilling

the basic monetary unit of Austria

Negative Interest Rates

the central bank (lender) pays the borrower, makes lending more affordable

NBA Salary Cap

the maximum amount each team can spend on salaries (with some exceptions built in) — was $70 million last season, a $7 million rise from the previous season. But next season it will be $94 million, and it is projected to be $107 million for the 2017-18 season. Also rising was each team's salary floor, mandating that franchises spend at least 90 percent of the cap's value on their players.

Bounce Rate

the percentage of users who immediately leaves the site when visiting

General Electric Origin

the product of an alliance between Thomas Edison and JP Morgan. It is the only in tact survivor of the original dow Jones index

Eminent Domain

the right of a government or its agent to expropriate private property for public use, with payment of compensation

Interest in REIT's in Today's World

they resemble fixed-income bonds, which is exciting in today's world with low-interest-rate yields. They churn out stable and predictable cash flows from 5-10 year long property leases, which promotes a 3.6% yield, higher than the 1.7% yield offered by a 10-year Treasury bond. After financial crisis, more people are leaning towards renting property rather than owning.. Many companies also label themselves as REITs to avoid corporate tax and achieve higher market valuations. Many casinos and hotels spun off their properties, listen the assets separately as REITs and leased them back to the operating business (Macy's/McDonald's face pressure to do so). In June, the IRS issued regulations banning companies outside the property industry from abusing the tax-free REIT structure-

Equity Zen

to improve the way startup employees are paid by unlocking the value of their equity compensation in a way that benefits all key players: the shareholder, the company, and the investor. Employees should have the opportunity to share in the value they create for their company's shareholders. This must be accomplished in a manner that keeps the focus on company growth, the number one priority for all stakeholders

Escrow Tax (NBA)

tries to ensure that salaries & benefits do not exceed the players' guaranteed share of Basketball Related Income (BRI). To do this, 10% of the players' salaries is withheld from their paychecks and deposited into an escrow account. At the end of each season they compare the players' guaranteed share of BRI to the amount they were actually paid in salaries & benefits. If there was an overage (i.e., if the players were paid more pre-escrow than they were guaranteed), then the amount of the overage is returned to the teams from the escrow account. The players then receive any escrow money that remains.

Reverse Mortgage

type of mortgage in which a homeowner can borrow money against the value of his or her home. No repayment of the mortgage (principal or interest) is required until the borrower dies or the home is sold. After accounting for the initial mortgage amount, the rate at which interest accrues, the length of the loan and rate of home price appreciation, the transaction is structured so that the loan amount will not exceed the value of the home over the life of the loan

Fallow

uncultivated land

Proxy Fight

when a group of shareholders are persuaded to join forces and gather enough shareholder proxies to win a corporate vote

Transfer Pricing

whenever two companies that are part of the same multinational group trade with each other: when a US-based subsidiary of Coca-Cola, for example, buys something from a French-based subsidiary of Coca-Cola. When the parties establish a price for the transaction, this is transfer pricing

Proposition F

would have imposed restrictions on private, short-term housing rentals. It would have restricted all such private rentals to 75 nights per year and imposed provisions designed to ensure such private rentals were paying hotel taxes and following city code