Bond A bond is a fixed income investment in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period of time at a variable or fixed interest rate. Bonds are used by companies, municipalities, states and sovereign governments to raise…
Category: Finance Terms
Basically it is a ratio of debt vs assets. Many lenders view this ratio as a way to determine the company’s / persons financial strength. A lender will view a person with small debt vs large assets much better then a person with a lot of debt and very little…
What is the ‘Treasury Yield’ Treasury yield is the return on investment, expressed as a percentage, on the U.S. government’s debt obligations. Looked at another way, the Treasury yield is the interest rate that the U.S. government pays to borrow money for different lengths of time. Treasury yields don’t just influence how…
Note on Cost of Capital: Remember money has value, you can lose on opportunities that may arise, but your money is tied up in another investment & cannot move on the new one that is much better. Thus you lost money, by not being ready. What is ‘Cost of Capital’…
NET Profit: In simplest terms, NET profit the money left over after paying all expenses including carrying cost. Net profit, also referred to as the bottom line, net income, or net earnings is a measure of the profitability of a venture after accounting for all costs and taxes. It is the actual profit, and includes…
Capital Expenditure – CAPEX Capital expenditure, or CapEx, are funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment. CapEx is often used to undertake new projects or investments by the firm. This type of financial outlay is also made by companies…
A profit and loss statement (P&L) is a financial statement that summarizes the revenues, costs and expenses incurred during a specific period of time, usually a fiscal quarter or year. These records provide information about a company’s ability – or lack thereof – to generate profit by increasing revenue, reducing costs, or…
Book Value and how it can help be manipulated Book value of an asset is the value at which the asset is carried on a balance sheet and calculated by taking the cost of an asset minus the accumulated depreciation. Book value is also the net asset value of a…
Fibonacci Retracement A Fibonacci retracement is a term used in technical analysis that refers to areas of support (price stops going lower) or resistance (price stops going higher). Fibonacci retracement levels use horizontal lines to indicate areas of support or resistance at the key Fibonacci levels before the trend continues…