suneetk/investopedia_terms huggingface dataset:
# Guilder Share (New York Share)

![Guilder Share (New York Share)](https://www.investopedia.com/thmb/PpJyOpo8t_vREOMSWGppN9cuF1s=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/guildershare.asp_Final-aa8f61d9d7ab4a84a3db19f0e7f476f8.png)

*— Investopedia / Candra Huff*

## What Were Guilder Shares?

A Guilder share was an ownership stake in a Dutch company that could be traded in the United States because it represented shares that had been canceled in Dutch stock markets.

Guilder Shares, also called New York Shares, represented a special international trading arrangement for shares of companies based in the Netherlands only, since the stocks of Dutch companies could not be traded through [American depository receipts](https://www.investopedia.com/terms/a/adr.asp) (ADRs) at the time. Today, ADRs can, in fact, be listed on Dutch companies, and so Guilder Shares are no longer used.

### Key Takeaways

*   Guilder Shares were a way for Dutch companies to list shares on the New York Stock Exchange (NYSE).
*   Holland previously prevented shares listed on its national exchanges from being traded outside of the country.
*   Also known as New York Shares, the Guild Share allowed for a Dutch company to cancel its shares on Netherlands exchanges and list them instead on the NYSE.

## Understanding Guilder Shares

When buying shares of a company located in a foreign country, U.S. citizens will generally buy an ADR, a certificate that represents those foreign shares.

Since the Netherlands did not allow Dutch company stock to be traded in other countries, a certain number of [shares](https://www.investopedia.com/terms/s/shares.asp) must be canceled in the Netherlands then grouped and sold as Guilder Shares that can then be issued in the U.S.

> **Fast Fact**
>
> The guilder was also once the name of the Dutch national currency before it joined the euro.

## Dutch ADRs Today

An American depositary receipt (ADR) is a [negotiable](https://www.investopedia.com/terms/n/negotiable.asp) certificate issued by a U.S. depositary bank representing a specified number of shares—often one share—of a foreign company's stock. The ADR trades on U.S. stock markets as any domestic shares would.

ADRs offer U.S. investors a way to purchase stock in overseas companies that would not be available otherwise. Foreign firms also benefit, as ADRs enable them to attract American investors and capital without the hassle and expense of listing on U.S. stock exchanges.

Today several Dutch ADRs are tradeable on U.S. exchanges. Several more trade in the U.S. [over-the-counter](https://www.investopedia.com/terms/o/otc.asp) (OTC). The ones listed on major exchanges in the U.S. include:

> **Article Sources**
>
> 1.  Top Foreign Stocks. "[The Complete List of Dutch ADRs](https://topforeignstocks.com/foreign-adrs-list/the-full-list-of-dutch-adrs/)."
# Hard Dollars: What It is, How It Works, Example

## What Are Hard Dollars?

Hard dollars are cash fees or [payments](https://www.investopedia.com/terms/p/payment.asp) made by an investor or customer to a brokerage firm in return for their services. Hard dollar payments are usually set amounts that are known before a customer begins dealing with a broker.

Hard dollar payments include set transaction charges, monthly account maintenance charges, as well as paying for research provided by the brokerage firm.

## Understanding Hard Dollars

If an investor requires research from a brokerage, they can pay for those services via a cash payment. This would be considered a hard dollar payment for services. However, if the investor wants to pay a few with commission dollars available with another brokerage firm, the customer can allocate some of those commission dollars towards another brokerage firm to pay for services or research. This type of payment is known as [soft dollars](https://www.investopedia.com/terms/s/softdollars.asp).

## Example of Hard Dollars

For example, if a client is looking to receive research from a broker or investment bank, they will usually pay for the research by trading with the broker and generating commission dollars. However, if the client doesn't have a trading relationship with the bank or broker, they can send along a check for payment. This would be considered hard dollars.

If the client has a soft dollar arrangement with another broker, meaning they have commission funds set aside to pay for research and other needs, they can direct the soft dollar broker to pay another broker for research. If the client, rather than sending a hard check, directs the soft dollar broker to pay a firm for their research, this would be a [soft dollar payment](https://www.investopedia.com/ask/answers/what-are-soft-dollars/).

In other words, hard dollars differ from soft dollar payments because soft dollar payments are paid within the commission [revenue](https://www.investopedia.com/terms/r/revenue.asp) from making [trades](https://www.investopedia.com/terms/t/trade.asp) or deducted from the value of any other transactions. Another way to look at it is that hard dollar payments are physical 'actual' payments in cash, whereas soft dollars are paid with commission dollars generated with a soft dollar broker.
# Help-Wanted Index (HWI): What It is, How It Works

![Help-Wanted Index (HWI)](https://www.investopedia.com/thmb/FDMz7uaHfaufv0ANO9bmXajoY4Q=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/Help_Wanted_Index_Final-9b0224409bf04fc290b5381150f07c3a.png)

*— Investopedia / Candra Huff*

## What Is the Help-Wanted Index?

The Conference Board's Help-Wanted Index (HWI) measures how efficiently employers are matching jobs to the available workforce (the unemployed) and is an important gauge on the economy.

The Conference Board, looking for a way to augment the portfolio of employment statistics, created the Help-Wanted Advertising Index in 1951. The most obvious contribution made by the HWI is its measure of the changes in employment demand as represented on the classified pages of newspapers, which is considered a [leading indicator](https://www.investopedia.com/terms/l/leadingindicator.asp) of unemployment. The arguably more meaningful contribution is the HWI's indirect measure of the slack in the job market—that is, how many jobs are going unfilled, or how efficient the job-matching process is.

## Understanding the Help-Wanted Index (HWI)

When the Help-Wanted Index (HWI) is rising, it means there are a relatively large amount of positions needing to be filled. This can be interpreted as a shortage of workers. Because employers may have to raise wages to attract workers, wage inflation could ensue, which could have a negative effect on bond and [equity markets](https://www.investopedia.com/terms/e/equitymarket.asp).

Created first in 1951, the index totaled the lines of help-wanted classified ads from 51 leading newspapers, each from a different metropolitan statistical area around the United States.

The HWI was restructured to equal 100 in 1987 and is released to the public in a monthly press release. The Conference Board releases a national number for the HWI, along with regional numbers representing nine segments of the country, and a percentage number representing the proportion of the labor market with rising want-ad volume. The current HWI report can be found on the [Conference Board's website](https://www.conference-board.org/data/).

The Conference Board is composed of a board of chairmen and trustees and its voting members. Most recently, these positions were filled by many high-ranking executives from corporations including Deutsche Bank, BBVA, Deere & Company, Johnson & Johnson, Monsanto, MasterCard, General Electric, Novartis, and State Farm Insurance.

> **Article Sources**
>
> 1.  The Conference Board. "[The New Conference Board Help Wanted OnLine (HWOL) Index is Declining](https://conference-board.org/blog/labor-markets/HWOL-Index-Declining)." Accessed March 15, 2021.
# What Is Henry Hub? Definition, Location, Owner, and Connections

## What Is Henry Hub?

Henry Hub is a natural gas pipeline located in Erath, Louisiana, that serves as the official delivery location for [futures contracts](https://www.investopedia.com/terms/f/futurescontract.asp) on the [New York Mercantile Exchange](https://www.investopedia.com/terms/n/nymex.asp) (NYMEX). The hub is owned by Sabine Pipe Line LLC and has access to many of the major gas markets in the United States. The hub connects to four intrastate and nine interstate pipelines, including the Transcontinental, Acadian and Sabine pipelines.

## Understanding Henry Hub

The Henry Hub pipeline is the pricing point for natural gas futures on the New York Mercantile Exchange. The NYMEX contract for deliveries at Henry Hub began trading in 1990 and is deliverable 18 months in the future. The [settlement prices](https://www.investopedia.com/terms/s/settlementprice.asp) at Henry Hub are used as benchmarks for the entire North American natural gas market and parts of the global [liquid natural gas](https://www.investopedia.com/terms/n/natural-gas-liquids.asp) (LNG) market.

## Importance of Hub Pricing

Henry Hub is an important market clearing pricing concept because it is based on the actual supply and demand of natural gas as a stand-alone commodity. Other natural gas markets like Europe have fragmented hub pricing points. This means natural gas prices are often [indexed to crude oil](https://www.investopedia.com/articles/active-trading/032515/do-oil-and-natural-gas-prices-rise-and-fall-together.asp), which can have very different supply and demand factors affecting its price. Attempts are being made to develop European hub pricing points in the Netherlands and the UK, but this has proved difficult so far due to competition from national hubs. Asian natural gas markets are even more fragmented and have no defined hub pricing point, although Singapore would like to serve this regional role. Consequently, all Asian natural gas prices are either indexed to crude oil or linked to Henry Hub.

## Henry Hub and Liquid Natural Gas

Henry Hub is also used in delivery contracts for LNG on a global basis, despite being a spot price for natural gas that is very specific to the North American gas market. Some global gas producers like Qatar and Australia prefer to base the pricing mechanism of their natural gas deliveries on spot prices rather than indexing to the price of oil. This is especially true when crude oil prices are falling. Gas producers can rely on Henry Hub as a source of natural gas spot pricing to meet this need because of its large trading volume, clear pricing transparency, and high liquidity. Henry Hub prices are widely quoted by futures exchanges and other media sources, so parties to a contact can easily obtain this pricing data.
# Jekyll and Hyde

![Jekyll and Hyde](https://www.investopedia.com/thmb/1zP9G5F4_tmQyQtVSFiSMhEXmGQ=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/jekyllhyde.asp-final-9ab86dc1e1e249ef8eaf55dda25ca39c.png)

*— Investopedia / Laura Porter*

## What Is Jekyll and Hyde?

The phrase "Jekyll and Hyde" employs a literary reference to describe a stock market that appears to have a split personality, mixing good and bad character traits.

Jekyll represents the good in a market. It is benign, predictable, and conducive to trading gains. Hyde is a bad character who is volatile, unstable, unpredictable, and generally dangerous to investors.

Because the stock market is susceptible to the full range of human emotions, Jekyll and Hyde make frequent appearances on Wall Street.

*   A Jekyll and Hyde stock market exhibits a split personality.
*   Mr. Hyde may emerge at any moment, wrecking a calm and rational market.
*   An economist might argue that this is an example of behavioral finance.

## Understanding Jekyll and Hyde

In Robert Louis Stevenson's _The Strange Case of Dr. Jekyll and Mr. Hyde,_ Dr. Jekyll, a decent and congenial scientist, unleashes his dark side, Mr. Hyde, through unwise experimentation on himself in a laboratory. Although Jekyll and Hyde have contradictory natures, they are one and the same person.

The embodiment of good and evil in one man is at times paralleled in the stock market. A calm and predictable market can suddenly and inexplicably be torn apart by a frenzy of negativity. Like the characters in Stevenson's novel, market participants and observers are left baffled about this strange behavior and at a loss to explain its underlying causes.

### Evolution of Behavioral Finance

An economist would say that strange market behavior is at odds with the [efficient market hypothesis](https://www.investopedia.com/terms/e/efficientmarkethypothesis.asp), which maintains that the price of any stock at any given time will always be the same as its fair market value because it will be based on all of the information then available.

A relatively new field of theory, [behavioral finance](https://www.investopedia.com/terms/b/behavioralfinance.asp), attempts to explain how rational decision-making, or a lack of it, contributes to manic swings in a market. Collective human behavior connected to greed and fear causes bubbles to form and then suddenly pop.

The Jekyll and Hyde syndrome might illustrate an aspect of behavioral finance.
# John B. Taylor

> **Definition**
>
> John B. Taylor is a professor and economist who serves as the director of Stanford University Introductory Economics Center. He's best known for creating an interest rate forecasting tool known as The Taylor Rule.

## 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 Center﻿﻿. His fields of expertise include [macroeconomics](https://www.investopedia.com/terms/m/macroeconomics.asp), [monetary policy](https://www.investopedia.com/terms/m/monetarypolicy.asp), 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](https://www.investopedia.com/articles/economics/10/taylor-rule.asp). The Taylor Rule asserts that the real interest rate should be 1.5 times the inflation rate, based on several macroeconomic assumptions.﻿﻿

## More On John B. Taylor

He 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.﻿﻿

Taylor is the author of hundreds of books and studies, including his landmark 1993 paper, [Discretion Vs. Policy Rules in Practice](http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.360.3299&rep=rep1&type=pdf), 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.﻿﻿

> **Article Sources**
>
> 1.  Stanford University. "[John B. Taylor](https://web.stanford.edu/~johntayl/)." Accessed Nov. 13, 2020.
>     
> 2.  Federal Reserve Bank of Cleveland. "[The Natural Rate of Interest in Taylor Rules](https://www.clevelandfed.org/newsroom-and-events/publications/economic-commentary/2016-economic-commentaries/ec-201601-the-natural-rate-of-interest-in-taylor-rules.aspx)." Accessed Nov. 13, 2020.
>     
> 3.  Stanford University. "[John Taylor's Profile](https://profiles.stanford.edu/john-taylor)." Accessed Nov. 13, 2020.
# Key Money: What it is, How it Works, In Practice

## What Is Key Money?

Key money is a fee paid to a manager, a landlord, or even a current tenant to secure a lease on a residential rental property. The term is sometimes used to refer to a security deposit. However, in some competitive rental markets, key money is simply a gratuity or a bribe.

Charging key money may be legal in some cases for commercial real estate agreements as long as it is written into the lease for the property.

## Understanding Key Money

The term key money has different meanings in various parts of the world and in the U.S.

### Key Takeaways

*   Key money is sometimes a synonym for a security deposit. Other times it's a bribe.
*   Key money can be an under-the-table payment in return for an apartment lease in a tough market.
*   Payment of key money is legal and acceptable in certain commercial lease transactions.

In some places, key money is synonymous with a security deposit. It is a payment of the equivalent of one or two months' rent, payable when the lease is signed. Laws vary from state to state, but generally, this money is required to be held in escrow and is to be returned to the leaseholder, with interest, after the lease expires. The landlord may withhold payment of some or all of the security deposit only if the tenant damages the property or fails to pay the rent.

### When Key Money Is a Bribe

In some cities, key money is paid by a prospective tenant to a property owner or manager, a building superintendent, or even the current tenant in the hopes of securing a rental contract. In such cases, the key money is a bribe to ensure that the prospective tenant's application is selected over others.

This practice is limited to cities with low vacancy rates and high prices, particularly if some rentals are subject to price controls that make them all the more desirable.

> **Important**
>
> A requirement for key money may be legal if it is written into the lease.

Demands for key money in exchange for apartment leases were once common, although illegal, in New York City. The city's complex rent stabilization regulations resulted in a two-tiered system of extremely expensive market-rate units and rarely available rent-stabilized units. The city's rent stabilization laws still exist, but the practice of paying key money apparently is no longer common.

### Key Money for Commercial Property

According to the real estate website brickunderground.com, payment of key money for commercial real estate is still common in New York City, and in this case, it's perfectly above-board. The holder of an attractively-priced long-term commercial lease may sign over the lease to a new tenant in return for a payment of key money. It is particularly common when the previous tenant is signing over a business that has already been equipped for use as a restaurant, for example.

The legal site LegalEagle notes that requiring key money may be legal if it is specifically written into the lease for the property.

Giving key money to a landlord as a gift is common practice in some countries, notably Japan and Mexico.
# What Is LIFO Liquidation, How It Works, Example

![LIFO Liquidation](https://www.investopedia.com/thmb/zb9gg43DjcSh6Qqtar9jEGASblQ=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/LIFO_Liquidation_Final_3-2-b901fb0482224a61b519a2720b2285cf.jpg)

*— Investopedia / Candra Huff*

## What Is a LIFO Liquidation?

A LIFO liquidation is when a company sells the most recently acquired inventory first. It occurs when a company that uses the [last-in, first-out](https://www.investopedia.com/terms/l/lifo.asp) (LIFO) inventory costing method liquidates its older LIFO inventory. A LIFO liquidation occurs when current sales exceed purchases, resulting in the liquidation of any inventory not sold in a previous period. 

### Key Takeaways

*   _A LIFO liquidation is when a company sells its newest inventory first._
*   _It is an accounting method that uses the last-in, first-out (LIFO) inventory costing method._
*   _LIFO matches the most recent costs against current revenues._
*   _Some companies use the LIFO method during periods of inflation when the cost to purchase inventory increases over time._

## How a LIFO Liquidation Works

The LIFO method is a financial practice in which a company sells the most recent inventory purchased first. LIFO matches the most recent costs against current [revenues](https://www.investopedia.com/articles/analyst/071502.asp). Some companies use the LIFO method during periods of inflation when the cost to purchase inventory increases over time. The LIFO method provides tax benefits as the higher costs associated with new inventories seemingly offset profits, resulting in a lower tax burden.

## LIFO Liquidation Example

ABC Company uses the LIFO method of inventory accounting for its domestic stores. It purchased 1 million units of a product annually for three years. The per-unit cost is $10 in year one, $12 in year two, and $14 in year three, and ABC sells each unit for $50. It sold 500,000 units of the product in each of the first three years, leaving a total of 1.5 million units on hand. Assuming that demand will remain constant, it only purchases 500,000 units in year four at $15 per unit. 

Despite its forecast, consumer demand for the product increased; ABC sold 1,000,000 units in year four. Under the LIFO method, 500,000 units from year four are liquidated, resulting in revenues of $25 million, [COGS](https://www.investopedia.com/terms/c/cogs.asp) of $7.5 million, and gross profits of $17.5 million; and 500,000 units from year three are liquidated, resulting in revenues of $25 million, COGS of $7 million, and gross profits of $18 million.