The New York Times Reader: Business & Economics

Below find additional resources to help you explore the ins and outs of your beat. Check out the multimedia packages we couldn't show you in the book and start following your favorite writers via RSS or Twitter.

More Online | Follow the Beat | Multimedia Models | Additional Resources

  

More Online

Links to articles excerpted in the Reader

2.7 The Greenspan Effect Full series
By Louis Uchitelle and Edmund Andrews

3.6 Remade in America
A Slippery Place in the U.S. Work Force
By Julia Preston

4.1 Executive Pay: A Special Report
Off to the Races Again, Leaving Many Behind
By Eric Dash

5.4 Newly Bankrupt Raking in Piles of Credit Offers

8.4 What are Mergers Good For?
By Gretchen Morgensen

10.1 At a Texas Foundry, an Indifference to Life
By David Barstow and Lowell Bergman

10.2 From China to Panama, a Trail of Poisoned Medicine
By Walt Bogdanich and Jake Hooker

10.3 ENRON'S MANY STRANDS: THE COMPANY UNRAVELS
Enron Buffed Image to a Shine Even as It Rotted From Within
By Kurt Eichenwald with Diana B. Henriques

 

Follow the Beat

Columns, beat blogs and writers to add to your health and medicine RSS feed.

Columns and Special Features

Blogs

Writers to Follow

 

Multimedia Models

Multimedia packages that correspond with stories in the Reader.

Living with Less: The human side to the global recession [multimedia page]

Two Ways to Measure Prices [graphic]

Economix [blog post and graphic]

Geography of a Recession [interactive map]

An Upper Bound [graphic]

Job Loss [photo]

Walmart cashier [photo]

“Largest US Bankruptcy filings" [chart]

“The Debt Trap" [multimedia series]

“The Wealthiest Benefit Most from the Recent Tax Cuts" [graphic]

“Still Not Time to Sell?" [graphic]

VISA IPO Could be Largest Ever [graphic]

“Mergers and Acquisitions" [graphic]

Michael Dell [photo]

New Jersey Pipe Maker [photo]

“A Toxic Pipeline" [multimedia series]

Enron [multimedia series]

 

Additional Resources

Further reading and resources to help you master your beat.

Business Concepts Review

Acquisition. Transaction in which a company buys and takes control of another company, also known as a takeover or a buyout.

Alternative minimum tax (AMT). Federal tax enacted in 1969 aimed at high-income households that weren't paying taxes. Because Congress failed to index the AMT for inflation, many taxpayers who aren't earning high incomes are being hit with the AMT.

Anecdotal lead. A vignette telling a small story about a person or situation that serves to illustrate the story's central theme.

Anonymous source. A person who agrees to exchange information with a reporter on the condition that his or her name not be disclosed. Courts have held that promises of confidentially are legally binding.

Baby boomers. Refers to the 76 million Americans born between 1946 and 1962—currently the largest demographic group in the United States.

Balance sheet. Financial statement that details a firm's financial condition on a given date.

Base compensation. Refers to the base salary paid to an employee. Usually used in relation to executives who receive several types of compensation.

Bond. Debt obligation or certificate of indebtedness issued by a government or company. Investors buy the bond allowing the issuer to use their money for a specified time period. The issuer is usually required the pay interest at specific intervals to the bondholder.

Bonus. Used by employers to reward employees for meeting performance goals. Bonuses have come under attack because incentive pay agreements require they be paid even when a company loses money.

Book value. The cost of an asset, less depreciation, as carried on a company's books. It often has no relation to market value.

Breakup fee. Fee paid to the purchaser in a takeover deal should a seller fail to meet the conditions of the transaction or walk away from the agreement.

Common stock. Share of ownership in a corporation providing the owner with a vote for each share held. Owners are also entitled to receive dividends on their holdings.

Computer-assisted reporting. The use of computers to analyze data and public records that can then be used to write news stories.

Conflict. Comes when two opposing forces converge, creating tension. Conflict helps move the reader through the story.

Conglomerate. A group of unrelated businesses owned by a parent company for the purpose of maximizing profits. Each business is run independently of the central company, and is viewed as a distinct operation and profit center.

Consumer price index. A widely used quoted inflation statistic compiled monthly by the Bureau of Labor Statistics. The CPI measures the weighted average of a predetermined market basket that includes such items as food, transportation, shelter, utilities and clothing. The index is calculated by taking the changes in price of the market basket and then comparing that average to a benchmark year.

Consumer spending. The purchase of goods and services by individuals. Whether consumers are spending is a sign of the health of the economy.

Countermove. Offered as a counter to the move or action being taken by the protagonist of the story. Can be a rebuttal, criticism or gripe. A countermove provides the other side's perspective to the argument.

Deflation. Decline in the price of goods and services due to changes in theeconomy—the reverse of inflation. Linked to recessions and the Great Depression. Not to be confused with disinflation—a slowdown in the inflation rate.

Depression. A severe version of a recession, a prolonged economic downturn marked by high unemployment, falling prices, falling productivity and falling personal income.

Derivative. Financial contract whose value is derived from an underlying asset such as real estate, stocks, bonds, commodities, residential mortgages or even interest rates. Derivatives are often used to hedge risk, but they can also be used to speculate.

Earnings per share. Measures how much profit a company earned for each share of stock outstanding. It is calculated by dividing net income by the company's average outstanding shares.

Economic indicator. Any statistic used to predict or measure performance of the economy. Some indicators are predictive while others are lagging statistics used to measure past performance.

Economic stimulus. Changes in government fiscal policy aimed at boosting economic activity during a recession such as cutting taxes or increasing government spending.

Effective tax rate. The actual rate paid after including all forms, deductions and other types of taxation.

Federal Reserve System. The U.S. central bank and regulator of the nation's financial and monetary system, established by the Federal Reserve Act of 1913. The Fed's main functions are to regulate the money supply and set reserve requirements for member banks.

Flat tax. A tax system with a constant, fixed tax rate. The U.S. income tax is currently a progressive system, meaning individuals who earn more pay more.

Food and Drug Administration. Federal agency responsible for regulating the safety of foods, drugs, cosmetics, medical devices, veterinary drugs and biological products.

Free market. A market where buyers and sellers are allowed to enter into transactions without government regulation or interference. Prices are allowed to rise and fall in line with the laws of supply and demand.

Freedom of Information Act. Law ensuring public access to federal records. The law defines the records subject to disclosure and outlines procedures governing the records released to the public.

Fully diluted earnings per share. Earnings per share measure that takes into account how many shares of common stock would be outstanding if all convertible securities were immediately converted into shares of common stock.

GDP deflator. Measures changes in price of all new domestically produced final goods and services in the economy. The deflator is calculated by dividing current dollar GDP by constant dollar GDP. The index is considered a broader measure of changes in price since it includes all goods and services and is not based on a fixed market basket of goods like the CPI.

Generally Accepted Accounting Principles (GAAP). A widely accepted set of rules and practices outlining how to accurately report financial information.

Great Depression. A deep global recession that began with the stock market crash on Wall Street in October 1929 and contin¬ued throughout the 1930s. One in four U.S. workers lost their jobs. Manufacturing output fell to half its 1929 level.

Great Recession of 2007–2009. Global recession spurred by a collapse in housing prices. Financial institutions failed, General Motors went bankrupt and the U.S. government was forced to pump billions into the U.S. economy to stave off another Great Depression.

Gross domestic product. The market value of all final goods and services produced within a country in a given time period. GDP is comprised of consumer and government purchases, private domestic investment and net exports of goods and services.

Immigration. Migration to a place that is not your native country of origin.

Income statement. Financial statement outlining a firm's revenue and expenses.

Income tax. Tax on earned income levied against both individuals and corporations.

Inflation. An increase in the level of prices. Occurs when money in the economy increases faster than the supply of goods.

Initial public offering. Occurs when a company offers shares of stock to the public for the first time.

Interest rate. The price of money or amount charged by a lender for the use of funds lent to borrowers. The interest rate is usually expressed in an annual rate.

Internal Revenue Service. U.S. government agency responsible for tax collection and enforcement.

International Monetary Fund. Organization established in 1944 to prevent currency devaluations and stabilize exchange rates worldwide.

Investigative Reporters and Editors, Inc. Nonprofit organization dedicated to improving the quality of investigative reporting in journalism.

Investment bank. Financial institution that acts as an agent for companies and individuals wishing to raise money and trade securities (stocks, bonds). Investment banks also act as financial advisers to companies engaged in mergers and acquisitions.

Junk bond. A bond rated BB or below because of its high risk of default. Used when other forms of financing are not available. Investors demand an interest rate of 3 to 4 percentage points higher than blue chip corporate risk.

Labor force. The number of people employed and unemployed in the economy.

Labor market drop-outs. Laid-off workers who become discouraged and stop looking for work but are still interested in working. These workers are no longer counted as unemployed.

Labor-force participation rate. The percentage of the adult population in the United States who are in the labor force.

Lagging indicator. Economic statistic that follows or trails performance in the economy. One example is the unemployment rate. Busi¬nesses lay off workers after conditions worsen, so this is considered a lagging indicator.

Layoff. Eliminating or dismissing a worker from their job.

Leading indicator. Economic statistic that tends to move with or ahead of general economic activity. The stock prices generally rise in anticipation of future economic activity.

Leveraged buyout (LBO). Takeover of a company's assets through the use of borrowed money and the target company's assets as collateral. Strategy relies on borrowing money to acquire all the outstanding shares, taking the company private. LBOs often result in considerable debt load and risk to the owners and creditors.

Line of credit. A contractual arrangement where a financial institution agrees to lend money to a customer up to a specific limit.

Liquidation. A fire sale of assets at deeply depressed prices to satisfy debts. Creditors usually receive only cents for every dollar of claims.

Loan value. The maximum that may be borrowed, or the amount a lender is willing to lend against a security or collateral.

Marginal tax rate. Extra taxes paid on an additional dollar of income.

Market capitalization. The number of shares of stock outstanding multiplied by the current market price.

Merger. Transaction where two companies' assets and liabilities are absorbed. The surviving firm retains its identity.

Middle class. A group of individuals who fall between the lower or working class and upper classes in society. The term is poorly defined, but is often used in reference to the bedrock of the U.S. population.

Minimum wage. The minimum amount of compensation an employee must receive for performing labor as prescribed by federal law.

Monetary policy. The regulation of the supply of money and interest rates by a central bank such as the Federal Reserve.

Money supply. Amount of money in the economy consisting of cash in circulation, deposits in savings and checking accounts. An increase in money supply tends to push interest rates down, but can also lead to an increase in prices. Tightening the money supply raises interest rates.

Mortgage. A debt where the borrower gives the lender a lien against property. The mortgage is repaid over time with a set schedule of payments.

Mortgage. A debt where the borrower gives the lender a lien against property. The mortgage is repaid over time with a set schedule of payments.

Move. Occurs when the story's central figure or protagonist takes the story in a direction.

Narration. A device used to put the reader at the scene. The writer develops the character, provides a setting and captures both the action and dialogue. Narration helps the story read more like a novel than a news story.

Net income. Sum left after all expenses have been deducted, synonymous with net earnings. If expenses exceed revenue, the result will be a net loss.

Nut graph. Explains what the story is about and offers a larger context of what is yet to come in the story. Also called the focus graph.

Occupational Safety and Health Administration. Federal agency that enforces rules for governing safety and health in the workplace.

Operating earnings. Sales minus the expenses associated with generating sales. Also known as operating profit.

Outsourcing. Subcontracting work to an outside third party or supplier to trim costs.

Poverty rate. Income threshold set by the U.S. government. The level is adjusted for inflation using the consumer price index.

Productivity. The amount of output in goods and services for each hour of a worker's time.

Property tax. Tax the owner must pay on the value of real estate, including land, buildings and improvements.

Prospectus. Written document issued for investors describing a new securities offering and the proposed business plan by the company.

Protagonist. Central figure of the story. The person can be a hero or a villain, but every story needs a central figure.

Proxy fight. A group of shareholders join forces to take a major action such as pushing out management or selling the company.

Recession. A downturn in economic activity defined as two consecu¬tive quarters of decline in gross domestic product.

Revenue. Sales generated by providing customers goods and services.

Sales tax. Tax collected on consumption, usually at the point of purchase, such as in a retail store.

Scope. Provides the reader an idea of proportion or size of the landscape—whether the story is local, national or global.

Secured debt. Borrower pledges assets such as a vehicle the borrower is purchasing as collateral for the loan. If the loan isn't repaid, the lender has the right to seize the collateral.

Securities analyst. An individual who performs investment research examining the value of stocks, bonds and other securities.

Securities and Exchange Commission. Federal agency established by the Securities Exchange Act of 1934 to uphold federal laws governing the issuance, registration, sale and trading of securities.

Security. A stock, bond, debt instrument or derivative contract that carries value and can be sold or traded for something of value.

Shield laws. Law that provides a news reporter with protection against having to divulge information and sources obtained during the news-reporting process.

Show, don't tell. The process of using an example or description to illustrate a point to the reader. Example: A bottle of Maalox sat on the CEO's desk.

Stagflation. Period marked by falling or slow economic growth and rising prices.

Standard & Poor's 500. An index of 500 large capitalization stocks that are actively traded.

Standard of living. Generally measured by income in relation to the poverty rate, a level of comfort afforded individuals who are able to maintain a certain level of consumption.

Stock options. A contractual right to purchase stock at a given price. Awarded to executives as an incentive to drive earnings and the stock price higher.

Supply-side economics. Popularized by economist Arthur Laffer, who argued that cutting taxes actually raises tax revenue and spurs high-income individuals to make capital investments.

Synergy. Philosophy holds that the sum of two companies' parts will improve economic performance, lead to efficiencies and benefit shareholders. In reality, the benefits of synergy are often overstated.

Truth in Lending Act. Federal act that requires full disclosure of the terms and costs of a lending arrangement.

Underwriter. Investment bank that assumes the risk of purchasing securities from a government or company for resale to the public.

Unemployment rate. Includes workers not employed, available for work and who have tried to find work during the previous four weeks. The percentage is calculated by dividing the number of unemployed by the number of workers in the labor force. The rate does not include persons who have stopped looking for work, students, homemakers or retirees.

Unsecured debt. No collateral is pledged by the borrower. Since unsecured debts are riskier for banks, borrowers are charged higher interest rates.

Value-added tax. Consumption tax based on the valued added to a product at each stage of its manufacture or distribution.

Walkoff, or kicker. Term used to describe the story ending. It can be a quote or clever turn in the story. It is always important to reward the reader with a strong ending.

Write-down. Downward adjustment in the value of an asset for accounting purposes.

Write-off. Reduction in the value of an asset as a loss.