An in-depth look at compensatory stock options, detailing their purpose, measurement, applicability, and related terms within the context of employee compensation.
The cost of capital is calculated using a weighted average of a firm's costs of debt and different classes of equity. It represents the rate of return a business could earn if it chose another investment with equivalent risk - the opportunity cost of the funds employed in an investment decision.
Coverdell Education Savings Accounts (ESA), formerly known as Education IRAs, are tax-advantaged accounts designed to help parents save for their children's education expenses.
Comprehensive overview of debt securities, including definitions, types, examples, historical context, applicability, related terms, FAQs and more.
An in-depth guide to understanding deferred annuities, their types, benefits, and considerations.
Deferred Group Annuity involves retirement income payments that begin after a stipulated future time period and continue for life, providing a structured way to secure retirement income.
A comprehensive overview of Defined-Benefit Pension Plans, focusing on their structure, formula, contributions, tax implications, and more.
Understanding the concept of depreciation recapture, which involves taxing at ordinary rates part of the gain on a sale that represents prior depreciation allowances.
A Required Statement Revealing Specified Information to Potential Buyers
A dormant partner, also known as a silent partner, is an investor in a business who contributes capital but does not participate in daily operations.
A comprehensive examination of downside risk, a measure of the potential decline in investment value considering various market factors.
A comprehensive explanation of each way commission, where brokers earn on both purchase and sale sides of a trade, including definitions, examples, and related terms.
Economic Life refers to the remaining period for which a machine or other property is expected to generate more revenue than operating expenses.
An overview of Effective Gross Income (EGI), including potential gross income, vacancy and collection allowance, and miscellaneous income in rental real estate.
An emerging market is a foreign economy that is developing in response to the spread of capitalism and has created its own stock market. Analogous to small growth companies, emerging markets have high potential as well as high risk.
An in-depth look at the concept of an equity kicker, a term used in finance to signify a form of compensation provided to lenders, which offers them potential upside in the form of equity in a company.
Event Risk pertains to the likelihood of a specific event affecting a particular business or investment. This is distinct from market or systemic risk, which influences all entities within the same category.
Excess (Accelerated) Depreciation refers to the accumulated difference between accelerated depreciation claimed for tax purposes and what straight-line depreciation would have been. This excess is often recaptured and taxed as ordinary income upon a sale.
Expiration refers to the date on which a contract, agreement, license, magazine subscription, etc., ceases to be effective. In options trading, it denotes the last day an option can be exercised.
The Fair Rate of Return is a level of profit that a public utility is allowed to earn as determined by federal and/or state regulators. It ensures that utilities can maintain service, pay dividends, and invest in infrastructure.
Financial assets encompass various forms of intangible assets such as stocks, bonds, rights, certificates, and bank balances, distinguishing them from tangible, physical assets like real property.
Financial leverage involves using borrowed funds to increase the potential return on investment. This article explains types of financial leverage, examples, historical context, its applicability, and more.
A comprehensive guide to understanding financial plans, their importance, and practical steps for individuals and businesses to achieve financial goals.
A fixed annuity is an investment contract sold by an insurance company that guarantees fixed payments to an annuitant either for life or for a specified period.
A comprehensive overview of fixed-income investments, including government, corporate, and municipal bonds, and preferred stock, focusing on their fixed rate of return.
A fractional share represents a unit of stock that is less than one full share. It occurs as a result of stock dividends, stock splits, or through direct fractional share purchasing programs.
A front-end load is a sales charge applied at the time of purchase of an investment, as opposed to a back-end load which is a fee incurred upon withdrawal.
A funded pension plan ensures that funds are currently allocated to purchase retirement benefits, providing financial security for employees even if the employer ceases operations.
Explore the multi-faceted definition of funding, its roles in refinancing, investment, corporate finance, and project support.
A comprehensive overview of the GAP Amount in financial needs and considerations for achieving full funding.
Global Hedging involves balancing positions of different business units or with unrelated third parties to mitigate risk exposure.
Exploring the concept of 'Going Long' in investment and speculation, covering its definition, types, considerations, examples, historical context, and comparisons.
A Goldbug is an analyst who strongly advocates for gold as a prime investment vehicle, particularly in times of economic turmoil such as depressions or hyperinflation. They view gold as a safe haven amidst financial instability.
A Graveyard Market is a bear market where investors who sell face substantial losses, while potential investors prefer to stay liquid until market conditions improve.
An in-depth look at hedging strategies used to offset business or investment risk, including definitions, types, examples, historical context, and the tax treatment of hedging income and losses.
Highest and Best Use refers to the most financially, legally, and physically viable use of a property that maximizes its value.
Hybrid annuities offer a mix of fixed and variable annuity benefits, providing guaranteed returns alongside the potential for higher gains.
A comprehensive overview of hybrid pension plans, their structure, types, examples, historical context, and applicability in modern financial planning.
An in-depth exploration of Incremental Cost of Capital and its implications in finance and investment decisions. See Marginal Cost.
Indemnify - Understanding the concept of securing against future loss, compensating for past damage, and its investment context.
A comprehensive guide to understanding market inefficiencies, their causes, and implications for investors.
Comprehensive explanation of Intangible Drilling and Development Costs, their components, significance in the oil and gas industry, and comparison with Tangible Drilling Costs.
An intermediary serves as a go-between in various contexts, including finance, where they make investment decisions for others. Examples include banks, insurance companies, and brokerage firms.
Definition and use of the term 'Intermediate Term' in various contexts such as finance, investment, and economics.
The Internal Rate of Return (IRR) is a financial metric used to evaluate the profitability of an investment, representing the discount rate at which the net present value (NPV) of all cash flows equals zero.
An in-depth guide to intrinsic value, including its definition, types, examples, historical context, and applicability in various fields.
Comprehensive overview of the Investment Advisers Act of 1940, which requires all investment advisers to register with the SEC to prevent fraud and misrepresentation.
A service providing professional investment advice for a fee, necessitating registration with the Securities and Exchange Commission and compliance with the Investment Advisers Act.
Detailed definition and roles of Investment Bankers, including their functions as underwriters or agents, historical context, and comparisons with related roles.
A comprehensive overview of Investment Demand, exploring schedules of investment projects by firms and market demand for specific investment assets.
Investment interest expense refers to the interest paid on funds borrowed to acquire investment assets like bonds, stocks, and undeveloped land. Tax deductions for such expenses are limited to the income received from the investments, like dividends and interest.
The Investment Life Cycle refers to the time span from acquisition of an investment to its final disposition. It is crucial for measuring the rate of return. This entry explores its phases, significance, and how it impacts financial decisions.
An investment objective is a financial goal that an investor uses to determine which kind of investment is appropriate for their needs, such as growth of capital or income.
Comprehensive analysis of Joint Tenancy, an ownership model with undivided interest and right of survivorship
Understanding the dual meaning of 'killing' in finance and business contexts, including significant rewards and termination of projects.
A financial arrangement where a property owner sells land to an investor and then leases it back for long-term use.
A term used to describe any product or investment that performs poorly or fails to meet expectations.
A life annuity provides guaranteed fixed payments for the rest of the annuitant's life. Once the annuitant dies, no further payments are made to beneficiaries.
A comprehensive guide to Limit Orders, which includes their definition, types, benefits, examples, historical context, and related terms in trading.
A comprehensive explanation of the role, liability, and restrictions of a Limited (Special) Partner within a Limited Partnership.
In-depth exploration of Load Funds in the context of Mutual Funds, including definitions, types, examples, historical context, comparisons, and related terms.
The significance of location in determining the value of real estate properties, along with considerations of other influential elements.
A comprehensive guide to understanding management fees including their types, significance, and application within finance and real estate.
An in-depth examination of the Marginal Cost of Capital, its importance in financing decisions, comparisons with average cost of capital, and its application in discounting cash flows.
An exploration of the marginal propensity to invest, which measures the proportion of additional national income that is invested instead of consumed or spent.
Marginal Propensity to Save (MPS) is the proportion of additional income that a consumer saves instead of spending on consumption. It is calculated as 1 minus the Marginal Propensity to Consume (MPC). MPS is an important indicator of an economy's potential for investment and growth.
Market Rent refers to the rental value a comparable property could command if offered in the competitive market, influencing real estate, investments, and economic behavior.
A comprehensive overview of Massachusetts Trust, also known as a common law trust, including its structure, advantages, historical context, legal considerations, and applications in the business world.
An in-depth exploration of the concept of 'Millionaire on Paper,' including the nature of non-liquid assets, examples, historical context, implications, and related terms.
A detailed exploration of mutual funds, including their structure, benefits, types, tax implications, and historical context.
A detailed exploration of a nest egg, its purpose, types, investment strategies, and importance in financial planning.
Detailed coverage of Net Income Per Share of Common Stock (EPS) including its definition, application, calculation, and its relation to Fully Diluted Earnings per Share.
Net Investment Income represents the excess of investment income over investment expenses. Individuals are allowed to deduct for tax purposes the Investment Interest Expense to the extent of their net investment income.
A comprehensive guide covering what a new listing is in the context of the stock or bond exchange, its requirements, types, implications, and historical context.
The Nominal Interest Rate is the rate of return on an investment that is unadjusted for the effect of inflation. It is distinguished from the real rate, which is the nominal rate less the rate of inflation.
An in-depth exploration of Nonbusiness Income, its taxation implications, types, and related considerations in multistate corporations.
An Odd Lot refers to stocks or bonds traded in blocks of fewer than 100 shares. It is different from a round lot, which usually consists of 100 shares. This term is significant in trading as it can affect liquidity and transaction costs.
An Offering Circular provides crucial information regarding securities offerings, aimed at potential investors. It is often used interchangeably with the term 'Prospectus'.
Options refer to things one purchases to add to a basic product, alternative courses of action that face a decision-maker, and the financial right, but not obligation, to buy or sell property.
A comprehensive guide to understanding Original Issue Discount (OID), its implications, and tax treatment.
A comprehensive overview of Over The Counter (OTC) markets, exploring their structure, significance, types, examples, and differences with exchange-traded markets.
Overimprovement refers to a situation where a property is developed to a standard that is too high for its location, resulting in a mismatch between the property's value and the land on which it is built. For example, constructing a $500,000 single-family home on a lot worth only $5,000.
Pencil Out refers to the process of estimating approximate figures to determine the potential profitability of a proposed investment or business opportunity.
A Pension Fund is established by various organizations to provide retirement benefits and plays a significant role in financial markets due to substantial investments in stocks and bonds.
A detailed overview of Group Deposit Administration Annuity in Pension Plan Funding, exploring its structure, benefits, and operational mechanics.
Personal financial planning software assists users in examining revenue and expenses, comparing actual to budget, monitoring assets and liabilities, goal analysis, investment portfolio analysis, tax planning, and retirement planning.
Poop and Scoop is an illegal stock market manipulation strategy where false negative information about a stock is spread to reduce its price, allowing manipulators to buy the stock cheaply and later profit from it.
Comprehensive exploration of the term 'pricey,' including its usage in general contexts and specific applications in investment and finance.
Prospectus: Detailed Description of a Formal Written Offer to Sell Securities, including Plan for Proposed Business or Existing Enterprise.
A comprehensive look at Publicly Traded Partnerships (PTPs), their characteristics, regulatory requirements, and their role in the financial market.
An in-depth exploration of Purchase Capital—its importance, components, and applications in business and investments.
An investment vehicle created under the Small Business Job Protection Act of 1996 that allows individuals to make tax-deductible contributions to accounts that accumulate tax-free income if used to cover a beneficiary's qualified educational expenses.
In-depth exploration of real estate, its types, importance, historical context, and related terms for a complete understanding of the field.
A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-producing real estate, which allows small investors to participate in large real estate ventures without the burden of double taxation.
An in-depth exploration of Realized Gain, its implications, types, examples, and its role in financial transactions.
A comprehensive guide to understanding Regulated Investment Companies (RICs), including their definitions, types, special considerations, examples, historical context, and applicability.
A detailed overview of Real Estate Mortgage Investment Conduits (REMICs), their structure, function, applications, and regulations in the financial and real estate industries.
An in-depth look at the concept of Return in various fields including finance, retail, taxes, and trade.
An in-depth look at the reversionary factor, a vital financial metric that calculates the present worth of one dollar to be received in the future using the interest rate and time period variables.
An in-depth exploration and explanation of reversionary value, a crucial concept in real estate finance, which refers to the estimated value of a property at the expiration of a specific time period.
