Maintenance (technical)
The technical meaning of maintenance involves functional checks, repairing or replacing of necessary devices, machinery, building infrastructure, supporting utilities in industrial, business and residential installations. Over time, this has come to include multiple wordings that describe various cost-effective practices to keep equipment operational. Together, these functions are referred to as Maintenance and overhaul. MRO is used for Maintenance and operations. Over time, the terminology of maintenance and MRO has begun to become standardized; the United States Department of Defense uses the following definitions: Any activity—such as tests, replacements and repairs—intended to retain or restore a functional unit in or to a specified state in which the unit can perform its required functions. All action taken to restore it to serviceability, it includes inspections, servicing, classification as to serviceability, repair and reclamation. All repair action taken to keep a force in condition to carry out its mission.
The routine recurring work required to keep a facility in such condition that it may be continuously used, at its original or designed capacity and efficiency for its intended purpose. Maintenance is connected to the utilization stage of the product or technical system, in which the concept of maintainability must be included. In this scenario, maintainability is considered as the ability of an item, under stated conditions of use, to be retained in or restored to a state in which it can perform its required functions, using prescribed procedures and resources. In some domains like aircraft maintenance, terms maintenance and overhaul include inspection, rebuilding and the supply of spare parts, raw materials, sealants and consumables for aircraft maintenance at the utilization stage. In international civil aviation maintenance means: The performance of tasks required to ensure the continuing airworthiness of an aircraft, including any one or combination of overhaul, replacement, defect rectification, the embodiment of a modification or a repair.
This definition covers all activities for which aviation regulations require issuance of a maintenance release document. The basic types of maintenance falling under MRO include: Preventive maintenance known as PM Corrective maintenance where equipment is repaired or replaced after wear, malfunction or break down. Predictive maintenance, which uses sensor data to monitor a system continuously evaluates it against historical trends to predict failure before it occurs. ReinforcementArchitectural conservation employs MRO to preserve, restore, or reconstruct historical structures with stone, glass and wood which match the original constituent materials where possible, or with suitable polymer technologies when not. Preventive maintenance is "a routine for periodically inspecting" with the goal of "noticing small problems and fixing them before major ones develop." Ideally, "nothing breaks down."The main goal behind PM is for the equipment to make it from one planned service to the next planned service without any failures caused by fatigue, neglect, or normal wear, which Planned Maintenance and Condition Based Maintenance help to achieve by replacing worn components before they fail.
Maintenance activities include partial or complete overhauls at specified periods, oil changes, minor adjustments, so on. In addition, workers can record equipment deterioration so they know to replace or repair worn parts before they cause system failure; the New York Times gave an example of "machinery, not lubricated on schedule" that functions "until a bearing burns out." Preventive maintenance contracts are a fixed cost, whereas improper maintenance introduces a variable cost: replacement of major equipment. Preventive maintenance or preventative maintenance has the following meanings: The care and servicing by personnel for the purpose of maintaining equipment in satisfactory operating condition by providing for systematic inspection and correction of incipient failures either before they occur or before they develop into major defects; the work carried out on equipment in order to avoid its malfunction. It is a routine action taken on equipment in order to prevent its breakdown. Maintenance, including tests, adjustments, parts replacement, cleaning, performed to prevent faults from occurring.
Other terms and abbreviations related to PM are: scheduled maintenance planned maintenance, which may include scheduled downtime for equipment replacement planned preventive maintenance is another name for PM breakdown maintenance: fixing things only when they break. This is known as "a reactive maintenance strategy" and may involve "consequential damage." Planned preventive maintenance, more referred to as planned maintenance or scheduled maintenance, is any variety of scheduled maintenance to an object or item of equipment. Planned maintenance is a scheduled service visit carried out by a competent and suitable agent, to ensure that an item of equipment is operating and to therefore avoid any unscheduled breakdown and downtime; the key factor as to when and why this work is being done is timing, involves a service, resource or facility being unavailable. By contrast, co
Lease
A lease is a contractual arrangement calling for the lessee to pay the lessor for use of an asset. Property and vehicles are common assets that are leased. Industrial or business equipment is leased. Broadly put, a lease agreement is a contract between the lessor and the lessee; the lessor is the legal owner of the asset. The lessee agrees to abide by various conditions regarding their use of the property or equipment. For example, a person leasing a car may agree; the narrower term rental agreement can be used to describe a lease in which the asset is tangible property. Language used is that the user rents goods let out or rented out by the owner; the verb to lease is less precise. Examples of a lease for intangible property are use of a computer program, or use of a radio frequency; the term rental agreement is sometimes used to describe a periodic lease agreement internationally and in some regions of the United States. A lease is a legal contract, thus enforceable by all parties under the contract law of the applicable jurisdiction.
In the United States, since it represents a conveyance of possessory rights to real estate, it is a hybrid sort of contract that involves qualities of a deed. Some specific kinds of leases may have specific clauses required by statute depending upon the property being leased, and/or the jurisdiction in which the agreement was signed or the residence of the parties. Common elements of a lease agreement include: Names of the parties of the agreement; the starting date and duration of the agreement. Identifies the specific object being leased. Provides conditions for renewal or non-renewal. Has a specific consideration for granting the use of this object. Has provisions for a security deposit and terms for its return. May have a specific list of conditions which are therein described as Default Conditions and specific Remedies. May have other specific conditions placed upon the parties such as: Need to provide insurance for loss. Restrictive use. Which party is responsible for maintenance. Termination clause All kinds of personal property or real property may be leased.
As a result of the lease, the owner grants the use of the stated property to the lessee. The narrower term ` tenancy' describes a lease. A premium is an amount paid by the tenant for the lease to be granted or to secure the former tenant's lease in order to secure a low rent, in long leases termed a ground rent. For parts of buildings it is most common for users to pay by collateral contract, or by the same contract, a service charge, an express list of services in a lease to minimize disputes over service charges. A gross lease or tenancy stipulates a rent, for the global amount due including all service charges. A cancelable lease is a lease that may be terminated by the lessee or by the lessor without penalty. A mutually determinable lease can be determined by either. A non-cancelable lease is a lease. “lease” may imply a non-cancelable lease, whereas “rental agreement” may connote a cancelable lease. Influenced by land registration tenancies granted for more than a year are referred to more as leases.
The lease will either provide specific provisions regarding the responsibilities and rights of the lessee and lessor, or there will be automatic provisions as a result of local law. In general, by paying the negotiated fee to the lessor, the lessee has possession and use of the leased property to the exclusion of the lessor and all others except with the invitation of the tenant; the most common form of real property lease is a residential rental agreement between landlord and tenant. As the relationship between the tenant and the landlord is called a tenancy, this term is used for informal and shorter leases; the right to possession by the tenant is sometimes called a leasehold interest. A lease can be for a fixed period of time. A lease may be terminated sooner than its end date by: Break/cancellation A negotiated deed of surrender or yielding-up. Forfeiture By operation of statute A lease should be contrasted with a license, which may entitle a person to use property, but, subject to termination at the will of the owner of the property.
An example of a licensor/licensee relationship is a parking lot owner and a person who parks a vehicle in the parking lot. A license may be seen in the form of a ticket to a baseball game or a verbal permission to sleep a few days on a sofa; the difference is that if there is a term, a degree of privacy suggestive of exclusive possession of a defined part, practised ongoing, recurrent payments, a lack of right to terminate save for misconduct or nonpayment, these factors tend toward a lease.
Insurance
Insurance is a means of protection from financial loss. It is a form of risk management used to hedge against the risk of a contingent or uncertain loss. An entity which provides insurance is known as an insurer, insurance company, insurance carrier or underwriter. A person or entity who buys insurance is known as a policyholder; the insurance transaction involves the insured assuming a guaranteed and known small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate the insured in the event of a covered loss. The loss may or may not be financial, but it must be reducible to financial terms, involves something in which the insured has an insurable interest established by ownership, possession, or pre-existing relationship; the insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insurer will compensate the insured. The amount of money charged by the insurer to the Policyholder for the coverage set forth in the insurance policy is called the premium.
If the insured experiences a loss, covered by the insurance policy, the insured submits a claim to the insurer for processing by a claims adjuster. The insurer may hedge its own risk by taking out reinsurance, whereby another insurance company agrees to carry some of the risk if the primary insurer deems the risk too large for it to carry. Methods for transferring or distributing risk were practiced by Chinese and Babylonian traders as long ago as the 3rd and 2nd millennia BC, respectively. Chinese merchants travelling treacherous river rapids would redistribute their wares across many vessels to limit the loss due to any single vessel's capsizing; the Babylonians developed a system, recorded in the famous Code of Hammurabi, c. 1750 BC, practiced by early Mediterranean sailing merchants. If a merchant received a loan to fund his shipment, he would pay the lender an additional sum in exchange for the lender's guarantee to cancel the loan should the shipment be stolen, or lost at sea. Circa 800 BC, the inhabitants of Rhodes created the'general average'.
This allowed groups of merchants to pay to insure their goods being shipped together. The collected premiums would be used to reimburse any merchant whose goods were jettisoned during transport, whether due to storm or sinkage. Separate insurance contracts were invented in Genoa in the 14th century, as were insurance pools backed by pledges of landed estates; the first known insurance contract dates from Genoa in 1347, in the next century maritime insurance developed and premiums were intuitively varied with risks. These new insurance contracts allowed insurance to be separated from investment, a separation of roles that first proved useful in marine insurance. Insurance became far more sophisticated in Enlightenment era Europe, specialized varieties developed. Property insurance as we know it today can be traced to the Great Fire of London, which in 1666 devoured more than 13,000 houses; the devastating effects of the fire converted the development of insurance "from a matter of convenience into one of urgency, a change of opinion reflected in Sir Christopher Wren's inclusion of a site for'the Insurance Office' in his new plan for London in 1667."
A number of attempted fire insurance schemes came to nothing, but in 1681, economist Nicholas Barbon and eleven associates established the first fire insurance company, the "Insurance Office for Houses," at the back of the Royal Exchange to insure brick and frame homes. 5,000 homes were insured by his Insurance Office. At the same time, the first insurance schemes for the underwriting of business ventures became available. By the end of the seventeenth century, London's growing importance as a center for trade was increasing demand for marine insurance. In the late 1680s, Edward Lloyd opened a coffee house, which became the meeting place for parties in the shipping industry wishing to insure cargoes and ships, those willing to underwrite such ventures; these informal beginnings led to the establishment of the insurance market Lloyd's of London and several related shipping and insurance businesses. The first life insurance policies were taken out in the early 18th century; the first company to offer life insurance was the Amicable Society for a Perpetual Assurance Office, founded in London in 1706 by William Talbot and Sir Thomas Allen.
Edward Rowe Mores established the Society for Equitable Assurances on Lives and Survivorship in 1762. It was the world's first mutual insurer and it pioneered age based premiums based on mortality rate laying "the framework for scientific insurance practice and development" and "the basis of modern life assurance upon which all life assurance schemes were subsequently based."In the late 19th century "accident insurance" began to become available. The first company to offer accident insurance was the Railway Passengers Assurance Company, formed in 1848 in England to insure against the rising number of fatalities on the nascent railway system. By the late 19th century governments began to initiate national insurance programs against sickness and old age. Germany built on a tradition of welfare programs in Prussia and Saxony that began as early as in the 1840s. In the 1880s Chancellor Otto von Bismarck introduced old age pensions, accident insurance and medical care that formed the basis for Germany's welfare state.
In Britain more extensive legislation was introduced by the Liberal government in the 1911 National Insurance Act. This gave the British working classes the first contributory system of insurance against illness and unemployment; this system was expanded after the Second World War under the inf
Renting
Renting known as hiring or letting, is an agreement where a payment is made for the temporary use of a good, service or property owned by another. A gross lease is when the tenant pays a flat rental amount and the landlord pays for all property charges incurred by the ownership. An example of renting is equipment rental. Renting can be an example of the sharing economy. There are many possible reasons for renting instead of buying, for example: In many jurisdictions rent paid in a trade or business is tax deductible, whereas rent on a dwelling is not tax deductible in most jurisdictions. Financial inadequacy, such as renting a house when one is unable to purchase, i.e "renting by necessity". Reducing financial risk due to depreciation and transaction costs for real estate which might be needed only for a short amount of time; when something is needed only temporarily, as in the case of a special tool, a truck or a skip. When something is needed that may or may not be owned but is not in proximity for use, such as renting an automobile or bicycle when away on a trip.
Needing a cheaper alternative to buying, such as renting a movie: a person is unwilling to pay the full price for a movie, so they rent it for a lesser price, but give up the chance to view it again later. The tenant may want to leave the burden of upkeep of the property to his agents. There is no need to worry about maintenance. Renting keeps off-balance-sheet the debt that would burden the balance sheet of a company in case the property would have been bought. Renting is good for the environment if products are used more efficiently by maximizing utility rather than being disposed and under utilized. Short-term rental of all sorts of products represents an estimated €108 billion annual market in Europe and is expected to grow further as the internet makes it easier to find specific items available for rent. According to a poll by YouGov, 76% of people looking to rent would go to the internet first to find what they need, it has been reported that the financial crisis of 2007–2010 may have contributed to the rapid growth of online rental marketplaces, such as erento, as consumers are more to consider renting instead of buying in times of financial hardship.
Environmental concerns, fast depreciation of goods, a more transient workforce mean that consumers are searching for rentals online. A 2010 US survey found. Net income received, or losses suffered, by an investor from renting of one or two properties is subject to idiosyncratic risk due to the numerous things that can happen to real property and variable behavior of tenants. There is an implied, explicit, or written rental agreement or contract involved to specify the terms of the rental, which are regulated and managed under contract law. Examples include letting out real estate for the purpose of housing tenure, parking space for a vehicle, storage space, whole or portions of properties for business, institutional, or government use, or other reasons; when renting real estate, the person or party who lives in or occupies the real estate is called a tenant, paying rent to the owner of the property called a landlord. The real estate rented may be all or part of any real estate, such as an apartment, building, business office or suite, farm, or an inside or outside space to park a vehicle, or store things all under Real estate law.
The tenancy agreement for real estate is called a lease, involves specific property rights in real property, as opposed to chattels. In India, the rental income on property is taxed under the head "income from house property". A deduction of 30% is allowed from total rent, charged to tax; the time use of a chattel or other so called "personal property" is covered under general contract law, but the term lease nowadays extends to long term rental contracts of more expensive non-Real properties such as automobiles, planes, office equipment and so forth. The distinction in that case is long term versus short term rentals; some non-real properties available for rent or lease are: motion pictures on VHS or DVD, of audio CDs, of computer programs on CD-ROM. Transport equipment, such as an automobile or a bicycle. Ships and boats, in which case rental is known as chartering, the rent is known as hire or freight aircraft, in which case rental is known as chartering, or leasing if the rental is longer term specialized tools, such as a chainsaw, laptop, IT equipment or something more substantial, such as a forklift.
Large equipment such as cranes, oil rigs and submarines. A deckchair or beach chair and umbrella. Furniture items such as Wooden Cot, iron cot, coffee Table, dining table, Mattress. Designer handbags, jewelry and watches. Home Appliances items such as washing machines, Television, Microwave oven, Air-Conditioners In various degrees, renting can involve buying services for various amounts of time, such as staying in a hotel, using a computer in an Internet cafe, or riding in a taxicab; as seen from the examples, some rented goods are used on the spot, but they are taken along.
Bond market
The bond market is a financial market where participants can issue new debt, known as the primary market, or buy and sell debt securities, known as the secondary market. This is in the form of bonds, but it may include notes, so on, its primary goal is to provide long-term funding for public and private expenditures.> The bond market has been dominated by the United States, which accounts for about 44% of the market. As of 2009, the size of the worldwide bond market is estimated at $82.2 trillion, of which the size of the outstanding U. S. bond market debt was $31.2 trillion according to Bank for International Settlements, or alternatively $35.2 trillion as of Q2 2011 according to Securities Industry and Financial Markets Association. The bond market is part of the credit market, with bank loans forming the other main component; the global credit market in aggregate is about 3 times the size of the global equity market. Bank loans are not securities under the Securities and Exchange Act, but bonds are and are therefore more regulated.
Bonds are not secured by collateral, are sold in small denominations of around $1,000 to $10,000. Unlike bank loans, bonds may be held by retail investors. Bonds are more traded than loans, although not as as equity. Nearly all of the average daily trading in the U. S. bond market takes place between broker-dealers and large institutions in a decentralized over-the-counter market. However, a small number of bonds corporate ones, are listed on exchanges. Bond trading prices and volumes are reported on FINRA's Trade Reporting and Compliance Engine, or TRACE. An important part of the bond market is the government bond market, because of its size and liquidity. Government bonds are used to compare other bonds to measure credit risk; because of the inverse relationship between bond valuation and interest rates, the bond market is used to indicate changes in interest rates or the shape of the yield curve, the measure of "cost of funding". The yield on government bonds in low risk countries such as the United States or Germany is thought to indicate a risk-free rate of default.
Other bonds denominated in the same currencies will have higher yields, in large part because other borrowers are more than the U. S. or German Central Governments to default, the losses to investors in the case of default are expected to be higher. The primary way to default is to not pay in full or not pay on time; the Securities Industry and Financial Markets Association classifies the broader bond market into five specific bond markets. Corporate Government and agency Municipal Mortgage-backed, asset-backed, collateralized debt obligations Funding Bond market participants are similar to participants in most financial markets and are either buyers of funds or sellers of funds and both. Participants include: Institutional investors Governments Traders IndividualsBecause of the specificity of individual bond issues, the lack of liquidity in many smaller issues, the majority of outstanding bonds are held by institutions like pension funds and mutual funds. In the United States 10% of the market is held by private individuals.
Amounts outstanding on the global bond market increased by 2% in the twelve months to March 2012 to nearly $100 trillion. Domestic bonds accounted for 70 % of the international bonds for the remainder; the United States was the largest market with 33% of the total followed by Japan. As a proportion of global GDP, the bond market increased to over 140% in 2011 from 119% in 2008 and 80% a decade earlier; the considerable growth means that in March 2012 it was much larger than the global equity market which had a market capitalisation of around $53 trillion. Growth of the market since the start of the economic slowdown was a result of an increase in issuance by governments; the outstanding value of international bonds increased by 2% in 2011 to $30 trillion. The $1.2 trillion issued during the year was down by around a fifth on the previous year's total. The first half of 2012 was off to a strong start with issuance of over $800 billion; the United States was the leading center in terms of value outstanding with 24% of the total followed by the UK 13%.
According to the Securities Industry and Financial Markets Association, as of Q1 2017, the U. S. bond market size is: Note that the total federal government debts recognized by SIFMA are less than the total bills and bonds issued by the U. S. Treasury Department, of some $19.8 trillion at the time. This figure is to have excluded the inter-governmental debts such as those held by the Federal Reserve and the Social Security Trust Fund. For market participants who own a bond, collect the coupon and hold it to maturity, market volatility is irrelevant, but participants who buy and sell bonds before maturity are exposed to many risks, most changes in interest rates. When interest rates increase, the value of existing bonds falls, since new issues pay a higher yield; when interest rates decrease, the value of existing bonds rises, since new issues pay a lower yield. This is the fundamental concept of bond market volatility—changes in bond prices are inverse to changes in interest rates. Fluctuating interest rates are part of a country's monetary policy and bond market volatility is a response to expected monetary policy and economic changes.
Economists' views of economic indicators versus actual released data c
Bond (finance)
In finance, a bond is an instrument of indebtedness of the bond issuer to the holders. The most common types of bonds include corporate bonds; the bond is a debt security, under which the issuer owes the holders a debt and is obliged to pay them interest or to repay the principal at a date, termed the maturity date. Interest is payable at fixed intervals; the bond is negotiable, that is, the ownership of the instrument can be transferred in the secondary market. This means that once the transfer agents at the bank medallion stamp the bond, it is liquid on the secondary market, thus a bond is a form of loan or IOU: the holder of the bond is the lender, the issuer of the bond is the borrower, the coupon is the interest. Bonds provide the borrower with external funds to finance long-term investments, or, in the case of government bonds, to finance current expenditure. Certificates of deposit or short-term commercial paper are considered to be money market instruments and not bonds: the main difference is the length of the term of the instrument.
Bonds and stocks are both securities, but the major difference between the two is that stockholders have an equity stake in a company, whereas bondholders have a creditor stake in the company. Being a creditor, bondholders have priority over stockholders; this means they will be repaid in advance of stockholders, but will rank behind secured creditors, in the event of bankruptcy. Another difference is that bonds have a defined term, or maturity, after which the bond is redeemed, whereas stocks remain outstanding indefinitely. An exception is an irredeemable bond, such as a consol, a perpetuity, that is, a bond with no maturity. In English, the word "bond" relates to the etymology of "bind". In the sense "instrument binding one to pay a sum to another", use of the word "bond" dates from at least the 1590s. Bonds are issued by public authorities, credit institutions and supranational institutions in the primary markets; the most common process for issuing bonds is through underwriting. When a bond issue is underwritten, one or more securities firms or banks, forming a syndicate, buy the entire issue of bonds from the issuer and re-sell them to investors.
The security firm takes the risk of being unable to sell on the issue to end investors. Primary issuance is arranged by bookrunners who arrange the bond issue, have direct contact with investors and act as advisers to the bond issuer in terms of timing and price of the bond issue; the bookrunner is listed first among all underwriters participating in the issuance in the tombstone ads used to announce bonds to the public. The bookrunners' willingness to underwrite must be discussed prior to any decision on the terms of the bond issue as there may be limited demand for the bonds. In contrast, government bonds are issued in an auction. In some cases, both members of the public and banks may bid for bonds. In other cases, only market makers may bid for bonds; the overall rate of return on the bond depends on the price paid. The terms of the bond, such as the coupon, are fixed in advance and the price is determined by the market. In the case of an underwritten bond, the underwriters will charge a fee for underwriting.
An alternative process for bond issuance, used for smaller issues and avoids this cost, is the private placement bond. Bonds sold directly to buyers may not be tradeable in the bond market. An alternative practice of issuance was for the borrowing government authority to issue bonds over a period of time at a fixed price, with volumes sold on a particular day dependent on market conditions; this was called a tap bond tap. Nominal, par, or face amount is the amount on which the issuer pays interest, which, most has to be repaid at the end of the term; some structured bonds can have a redemption amount, different from the face amount and can be linked to the performance of particular assets. The issuer has to repay the nominal amount on the maturity date; as long as all due payments have been made, the issuer has no further obligations to the bond holders after the maturity date. The length of time until the maturity date is referred to as the term or tenor or maturity of a bond; the maturity can be any length of time, although debt securities with a term of less than one year are designated money market instruments rather than bonds.
Most bonds have a term of up to 30 years. Some bonds have been issued with terms of 50 years or more, there have been some issues with no maturity date. In the market for United States Treasury securities, there are three categories of bond maturities: short term: maturities between one and five years; the coupon is the interest rate. This rate is fixed throughout the life of the bond, it can vary with a money market index, such as LIBOR, or it can be more exotic. The name "coupon" arose because in the past, paper bond certificates were issued which had coupons attached to them, one for each interest payment. On the due dates the bondholder would hand in the coupon to a bank in exchange for the interest payment. Interest can be paid at different frequencies: semi-annual, i.e. every 6 months, or annual. The yield is the rate of return received from investing in the bond, it refers either to The current yield, or running yield
