profit-sharing
An arrangement in which an employer shares some of its profits with its employees. The compensation can be stocks, bonds, or cash, and can be immediate or deferred untilretirement. Profit-sharing allows for changing contributions each year. Contributions are determined by a formula to allocate the overall contribution and distribution of accumulatedfunds after the retirement age. Unless the plans are defined as an elective deferral plan, the contributions are not tax deductible. Contributions and earnings can grow tax-deferred untilwithdrawal.
technical analysis
A method of evaluating securities by relying on the assumption that market data, such ascharts of price, volume, and open interest, can help predict future (usually short-term) markettrends. Unlike fundamental analysis, the intrinsic value of the security is not considered.Technical analysts believe that they can accurately predict the future price of a stock by looking at its historical prices and other trading variables. Technical analysis assumes that market psychology influences trading in a way that enables predicting when a stock will rise orfall. For that reason, many technical analysts are also market timers, who believe that technical analysis can be applied just as easily to the market as a whole as to an individual stock.
total quality management (TQM)
A holistic approach to long-term success that views continuous improvement in all aspects of an organization as aprocess and not as a short-term goal. It aims to radically transform the organization through progressive changes in theattitudes, practices, structures, and systems. Total quality management transcends the product quality approach, involves everyone in the organization, and encompasses its every function: administration, communications,distribution, manufacturing, marketing, planning, training, etc. Coined by the US Naval Air Systems Command in early 1980s, this term has now taken on several meanings and includes (1) commitment and direct involvement of highest-level executives in setting quality goals and policies, allocation of resources, and monitoring of results; (2) realizationthat transforming an organization means fundamental changes in basic beliefs and practices and that thistransformation is everyone’s job; (3) building quality into products and practices right from the beginning; (4) understanding of the changing needs of the internal and external customers, and stakeholders, and satisfying them in a cost effective manner; (5) instituting leadership in place of mere supervision so that every individual performs in the best possible manner to improve quality and productivity, thereby continually reducing total cost; (6) eliminating barriers between people and departments so that they work as teams to achieve common objectives; and (7) instituting flexibleprograms for training and education, and providing meaningful measures of performance that guide the self-improvement efforts of everyone involved
workers’ compensation
Financial support system established under law to provide income, medical care, and rehabilitation to employees for illness, injury, or death arising out of, and in the course of, their employment whether or not the employee was at fault. These benefits are claimed by the employees (or their dependents) as a matter of right and the employer cannot resort to any legal defense. Amount paid as compensation is based on the salary of the employee (also on the number of his or her dependents in some jurisdictions) and is usually subject to a specified maximum. In most countries, this systemis compulsory although agricultural and domestic workers are generally excluded. Also called workmen’s compensation.
overfunded pension plan
In which the value of projected benefits exceeds the value of projected obligations; thus, apension plan with a surplus. This situation usually occurs during a stock market boom aspension plans invest heavily in high quality stocks. Or it may occur when a defined benefit planis converted to a cash-balance plan. The surplus can legally be shown as the company’sincome but cannot be paid out to the stockholders because it belongs to the pension plan.
durable goods orders
A government report which measures consumer spending on long-term purchases, productsthat are expected to last more than three years. It is intended to offer a gauge of the future of the manufacturing industry. The report is made at 8:30 am EST around the 26th of each month and is thought to provide insight into the future for the manufacturing industry. The reports are broken down by industry, which helps to eliminate the effects of single volatile industries like defense spending.
dislocated worker
An individual who meets one of the following criteria: (1) has been laid off or terminated, or received notice of termination or lay off and is unlikely to return to previous industry of occupation, (2) has been terminated or laid off, or has received a notice of termination or lay off, as a result of permanent closure of, or substantial layoff at a plant orfacility, (3) was self-employed and now unemployed because of a natural disaster, (4) was self-employed (includingfarmer, rancher, or fisherman), but is unemployed as a result of general economic conditions in the community in which he or she resides or because of a natural disaster, or (5) is a displaced homemaker. See also displaced worker.
sidonyneou 