Corporate financing
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Value Engineering: Definition, Benefits & How It Works
What Is Value Engineering? Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost. Value engineering promotes the substitution o
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Trade Finance: Facilitating Global Trade for Importers & Exporters
What Is Trade Finance? Trade finance represents the financial instruments and products that are used by companies to facilitate international trade and commerce. Trade finance makes it po
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Shutdown Point: Understanding When to Halt Operations
What Is a Shutdown Point? A shutdown point is a level of operations at which a company experiences no benefit for continuing operations and therefore decides to shut down temporarily—or in som
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Understanding Service Charges: What They Are & How They Work
What Is a Service Charge? A service charge is a fee collected to pay for services related to the primary product or service being purchased. The charge is usually added at the time of the tran
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Understanding Scrap Value: What It Is & How It's Determined
What Is Scrap Value? Scrap value is the worth of a physical assets individual components when the asset itself is deemed no longer usable. The individual components, known as scrap, are worth
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Recurring Revenue: Definition, Benefits & How It Works
What is Recurring Revenue? Recurring revenue is the portion of a companys revenue that is expected to continue in the future. Unlike one-off sales, these revenues are predictable, stable
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Qualified Institutional Placement (QIP): A Comprehensive Guide
What Is a Qualified Institutional Placement (QIP) A qualified institutional placement (QIP) is, at its core, a way for listed companies to raise capital without having to submit legal paperwor
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Understanding Proxies: Representation and Voting Rights
What Is a Proxy? A proxy is an agent legally authorized to act on behalf of another party or a format that allows an investor to vote without being physically present at the meeting. Sharehold
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PIPE Investments: Understanding Private Equity in Public Companies
What Is a Private Investment in Public Equity (PIPE)? Private investment in public equity (PIPE) is the buying of shares of publicly traded stock at a price below the current market value
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Letter of Intent (LOI): Definition, Purpose & Key Terms
What Is a Letter of Intent (LOI)? A letter of intent (LOI) is a document declaring the preliminary commitment of one party to do business with another. The letter outlines the chief terms of a
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Incremental Analysis: A Business Decision-Making Technique
What Is Incremental Analysis? Incremental analysis is a decision-making technique used in business to determine the true cost difference between alternatives. Also called the relevant cost app
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Financial Risk Manager (FRM) Certification: Your Complete Guide
Table of Contents Expand What Is a Financial Risk Manager (FRM)? Understanding Financial Risk Managers (FRMs) The Financial Risk Manager (FRM) Program FRM vs. CFA Advant
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Decision Support Systems (DSS): Definition & Benefits
What Is a Decision Support System? A decision support system (DSS) is a computerized program used to support determinations, judgments, and courses of action in an organization or a business.
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Understanding Labor Costs: Direct & Indirect Expenses
What Is the Cost of Labor? The cost of labor is the sum of all wages paid to employees, as well as the cost of employee benefits and payroll taxes paid by an employer. The cost of labor is bro
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BCG Growth-Share Matrix: A Comprehensive Guide for Strategic Planning
What Is a BCG Growth-Share Matrix? The Boston Consulting Group (BCG) growth-share matrix is a planning tool that uses graphical representations of a company’s products and services in an effor
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Activity-Based Management (ABM): Improve Profitability & Efficiency
What Is Activity-Based Management? Activity-based management (ABM) is a system for determining the profitability of every aspect of a business so that its strengths can be enhanced and its wea
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Understanding Non-Cash Charges: Impact on Financial Statements
What is a Non-Cash Charge? A non-cash charge is a write-down or accounting expense that does not involve a cash payment. They can represent meaningful changes to a companys
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Understanding Economic Life: Definition & Importance
What is Economic Life? Economic life is the expected period of time during which an asset remains useful to the average owner. When an asset is no longer useful to its owner, then it is s
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Underwriting Agreement: Definition, Purpose & Key Terms
What Is Underwriting Agreement? An underwriting agreement is a contract between a group of investment bankers who form an underwriting group or syndicate and the issuing corporation of a new s
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Strategic Financial Management: Achieving Business Goals & Maximizing Value
What Is Strategic Financial Management? Strategic financial management means not only managing a companys finances but managing them with the intention to succeed—that is, to attain the compan
Corporate financing
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Stochastic Oscillator: Understanding Momentum & Trading SignalsThe Stochastic Oscillator is an indicator that compares the most recent closing price of a securityPublic SecuritiesPublic securities, or marketable securities, are investments that are openly or easi...
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Child Tax Credit 2022: Will Payments Continue? Update & EligibilityMany 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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YNAB Success Story: From Paycheck to Adoption - Financial Freedom AchievedFor many users, You Need a Budget (YNAB) is the tool that finally helps them to take control of their finances and feel confident in their future. Some YNAB wins are full of huge debt payoffs, but th...
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Saving vs. Investing: A Comprehensive Guide to Grow Your WealthSetting money aside for a future time is always a wise decision, but not always an easy one. Add to this the choice between saving your money and investing it, and the task can become a b...