Corporate financing
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Profit Centers: Definition, Benefits & Examples | [Your Brand]
What Is a Profit Center? A profit center is a branch or division of a company that directly adds or is expected to add to the entire organizations bottom line. It is treated as a separate, sta
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Understanding Parent Companies: Definition, Control & Subsidiaries
What Is a Parent Company? A parent company is a company that has a controlling interest in another company, giving it control of its operations. Parent companies can be either hands-on or hand
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Understanding Non-Controlling Interest (Minority Interest)
What Is Non-Controlling Interest? A non-controlling interest, also known as a minority interest, is an ownership position wherein a shareholder owns less than 50% of outstanding shares and has
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Levered Free Cash Flow (LFCF): Definition & Importance
What Is Levered Free Cash Flow (LFCF)? Levered free cash flow (LFCF) is the amount of money a company has left remaining after paying all of its financial obligations. LFCF is the amount of ca
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Understanding Financial Structure: Debt vs. Equity
What Is Financial Structure? Financial structure refers to the mix of debt and equity that a company uses to finance its operations. This composition directly affects the risk and va
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Understanding Cash Position: A Guide for Investors & Businesses
What Is a Cash Position? A cash position represents the amount of cash that a company, investment fund, or bank has on its books at a specific point in time. The cash position is a sign of fin
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Capital Funding: A Comprehensive Guide for Businesses
What Is Capital Funding? Capital funding is the money that lenders and equity holders provide to a business for daily and long-term needs. A companys capital funding consists of both debt (bon
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Authorized Share Capital: Definition & Purpose
What Is Authorized Share Capital? Authorized share capital is the number of stock units (shares) that a company can issue as stated in its memorandum of association or its articles of incorpor
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Asset Financing: Leverage Your Assets for Capital - [Company Name]
What is Asset Financing? Asset financing refers to the use of a company’s balance sheet assets, including short-term investments, inventory and accounts receivable, to borrow money or get a lo
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Optimal Capital Structure: Balancing Debt & Equity for Maximum Value
What Is Optimal Capital Structure? The optimal capital structure of a firm is the best mix of debt and equity financing that maximizes a company’s market value while minimizing its cost of cap
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Special Warranty Deed: Definition & What It Covers
What Is a Special Warranty Deed? A special warranty deed is a deed to real estate where the seller of the property—known as the grantor—warrants only against anything that occurred during thei
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Reverse Stock Split Explained: What It Is & Why Companies Do It
What Is a Reverse Stock Split? A reverse stock split is a type of corporate action that consolidates the number of existing shares of stock into fewer (higher priced) shares. A reverse stock s
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Understanding Retainer Fees: What They Are & How They Work
What Is a Retainer Fee? A retainer fee is an amount of money paid upfront to secure the services of a consultant, freelancer, lawyer, or other professional. A retainer fee is most commonly pai
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Loss Leader Strategy: Definition, Benefits & Examples
What Is a Loss Leader Strategy? A loss leader strategy involves selling a product or service at a price that is not profitable but is sold to attract new customers or to sell additional produc
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Clawback Provisions: Understanding Employee Repayment Agreements
What Is a Clawback? A clawback is a contractual provision whereby money already paid to an employee must be returned to an employer or benefactor, sometimes with a penalty. Many compan
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Capital Lease Explained: Accounting & Ownership
What Is Capital Lease? A capital lease is a contract entitling a renter to the temporary use of an asset and has the economic characteristics of asset ownership for accounting purposes. K
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Series B Funding: What It Is & When Your Startup Needs It
What Is Series B Financing? Series B financing is the second round of funding for a business through investment, including private equity investors and venture capitalists. Successive rounds o
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Payback Period: Definition, Calculation & Significance in Finance
Table of Contents Expand What Is the Payback Period? Understanding the Payback Period Special Considerations Example of Payback Period What Is a Good Payback Period?
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LIBOR Explained: Understanding the London Interbank Offered Rate
What Is London Interbank Offered Rate (LIBOR)? The London Interbank Offered Rate (LIBOR) is a benchmark interest rate at which major global banks lend to one another in the internati
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Understanding Implicit Costs: Opportunity Cost in Business
What Is an Implicit Cost? An implicit cost is any cost that has already occurred but not necessarily shown or reported as a separate expense. It represents an opportunity cost that arises when
Corporate financing
- Capital Budgeting: A Comprehensive Introduction
- Letter of Intent (LOI): Definition, Purpose & Key Terms
- Accelerated Bookbuild: A Fast-Track to Equity Financing
- Private vs. Public Company: Key Differences Explained
- Trade Finance: Facilitating Global Trade for Importers & Exporters
- Authorized Share Capital: Definition & Purpose
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Debt Consolidation Loans: 5 Benefits for Financial ReliefMany or all of the products here are from our partners that pay us a commission. It’s how we make money. But our editorial integrity ensures our experts’ opi...
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Emergency Fund vs. Investments: Do You Need Both?It intuitively makes sense, but does it work? ...
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Understanding Mortgage Registration: A Comprehensive GuideWhen a borrower purchases a new mortgage, the debt is registered with the local government by the closing agent to record a legal debt. This lists the debt on the deed to the property. This means that...
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Spouse and Credit Cards: Legal Rights & ResponsibilitiesYour credit card agreement determines who can use your credit card. Spouses often share financial responsibilities, ranging from joint checking accounts to mortgages and credit cards. However...