the price associated with advertising and marketing and writing brand-new INSURANCE company, usually made up of AGENT commissions, UNDERWRITING expenses, costs, and marketing help prices. Some among these costs can be recharged back again to INSUREDS through EXPENSE LOADING. ACTIVE INVESTMENT STRATEGY a procedure of dynamically managing a PORTFOLIO of securities by analyzing the RISK elements that influence each RESOURCE course (particularly INTEREST LEVELS, interest rate VOLATILITY, CREDIT SPREADS, FOREIGN CURRENCY PRICES, and business earnings) and allocating CAPITAL to those where danger and return look appealing. A working method may necessitate frequent rebalancing. See also INDEXING, PASSIVE INVESTMENT STRATEGY.ACTUAL AUTHORITY Powers awarded by a PRINCIPAL to a representative to deal on its part. Actual authority could be explicit or implicit, and activities taken by the representative are generally binding regarding key. Also referred to as EXPRESS AUTHORITY.
1. Cost of a valuable asset after deducting discounts, and including normal incidental prices (except taxes). 2. Cost of acquiring a unique client, including costs associated with marketing and/or salesperson visits.