Fiorile Financial Advisory Group

360 Degrees of Financial Literacy Fiorile Financial Advisory Group 126 Kiwassa Road... Saranac Lake, NY 12983 518.891.3290 [email protected] 2nd Quarter, 2018 Part of Our On-Going Campaign Seeking to Raise Financial Awareness. This Quarter’s Topic: Employment What is the ‘Unemployment Rate?’ The unemployment rate is the share of the labor force that is jobless, expressed as a percentage. It is a lagging indicator, meaning that it generally rises or falls in the wake of changing economic conditions, rather than anticipating them. When the economy is in poor shape and jobs are scarce, the unemployment rate can be expected to rise. When the economy is growing at a healthy rate and jobs are relatively plentiful, it can be expected to fall. What is the ‘Civilian Labor Force?’ The civilian labor force is a term used by the Bureau of Labor Statistics to refer to Americans whom it considers either employed or unemployed; military personnel, federal government employees, retirees, handicapped or discouraged workers, and agricultural workers are not part of the civilian labor force. What is a ‘Discouraged Worker?’ A discouraged worker is a person who is eligible for employment and is able to work, but is currently unemployed and has not attempted to find employment in the last four weeks. Discouraged workers have usually given up on searching for a job because they found no suitable employment options and were met with lack of success when applying. What is the ‘Full Employment?’ Full employment is an economic situation in which all available labor resources are being used in the most efficient way possible. Full employment embodies the highest amount of skilled and unskilled labor that can be employed within an economy at any given time. Any remaining unemployment is considered to be frictional, structural or voluntary. What is ‘Natural Unemployment?’ Natural unemployment, or the natural rate of unemployment, is the minimum unemployment rate resulting from real, or voluntary, economic forces. It can also be defined as the minimum level of calculable unemployment in the Walrasian system of general equilibrium, after accounting for labor and commodity movements, market imperfections, stochastic variability and other supply and demand consideration built into the model. Note: CPA’s have undertaken this initiative as a service to help the public to better understand their finances. The Fiorile Financial Advisory Group is an active participant in this endeavor

Fiorile Financial Advisory Group 126 Kiwassa Road Saranac Lake, NY 12983 518.891.3290... [email protected] 1st Quarter, 2017 Part of Our On-Going Campaign Seeking to Raise Financial Awareness. This Quarter’s Topic: MORE INVESTING TERMS What is a basis point? A basis point is a unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument. One basis point is equivalent to 0.01% (1/100th of a percent) or 0.0001 in decimal form. In most cases, it refers to changes in interest rates or bond yields. What is margin interest? An interest rate applied to a loan or margin extended by a broker. When an investor wishes to make a purchase that is in excess of the cash on hand, a brokerage firm will automatically provide access to additional capital. An interest rate will be applied to this extension of a loan, which compensates the brokerage firm for access to the capital. What is a short sale? Borrowing a security (or commodity futures contract) from a broker and selling it, with the understanding that it must later be bought back (hopefully at a lower price) and returned to the broker. What is a fiduciary? An individual, corporation or association holding assets for another party, often with the legal authority and duty to make decisions regarding financial matters on behalf of the other party. What is the trade date? The date on which the transaction occurs; 1 to 5 days before the settlement date, depending on the type of transaction. Note: CPA’s have undertaken this initiative as a service to help the public to better understand their finances. The Fiorile Financial Advisory Group is an active participant in this endeavor