finance
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Binance in Canada: Legality & Ontario Restrictions - A Comprehensive Guide
Binance is the world’s largest crypto exchange. It operates in Canada but not in Ontario. However, the question of whether Binance, the world’s largest cryptocurrency exchange, is legal anywhere remai
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Startup Employee Compensation: A Guide for Founders
Q: “I run a creative, non-tech startup business. How do I pay myself? And how do I balance planning for a life of entrepreneurship with also wanting to do right by my employees? I’d also love to know
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Peer-to-Peer Lending: A Comprehensive Guide for Borrowers & Investors
Today, borrowers have more options than a traditional bank loan or a payday loan. Alternate financing, such as peer-to-peer lending, can be a good choice for some. If you’re not sure what it is, how i
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Profit vs. Earnings: Understanding the Key Differences
What Is the Difference Between Profit and Earnings? Profits and earnings are often used interchangeably, but they are different. Overall, these terms are primarily differentiated by the adjecti
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Payback Period Analysis: Limitations and Alternatives in Investment Decisions
The payback period refers to the amount of time it takes to recover the cost of an investment. Moreover, its how long it takes for the cash flow of income from the investment to equal its initial co
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Par Value vs. Market Value: Understanding the Key Differences
Par Value vs. Market Value: An Overview Par value is also called face value, and that is its literal meaning. The entity that issues a financial instrument assigns a par value to it. When share
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Operating vs. Financial Leverage: Understanding the Key Differences
Operating leverage and financial leverage are two different metrics used to determine the financial health of a company. Operating leverage is an indication of how a companys costs are structured
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Internal Rate of Return (IRR) Calculation: A Practical Guide
Computing the internal rate of return (IRR) for a possible investment is time-consuming and inexact. IRR calculations must be performed via guesses, assumptions, and trial and error. Essentially, an
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Deferred Revenue vs. Accrued Expense: Understanding the Key Differences
Deferred Revenue vs. Accrued Expense: An Overview Deferred revenue, also known as unearned revenue, refers to advance payments a company receives for products or services that are to
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EPS vs. DPS: Understanding Earnings Per Share and Dividends Per Share
Earnings Per Share (EPS) vs. Dividends Per Share (DPS): An Overview Earnings per share (EPS) and dividends per share (DPS) are both reflections of a companys profitability, but thats where any
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Spin-Offs, Split-Offs & Carve-Outs: Understanding Corporate Restructuring
Spin-Off vs. Split-Off vs. Carve-Out: An Overview A spin-off, split-off, and carve-out are different methods a company can use to divest certain assets, a division, or a subsidiary. W
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Geometric Mean in Investing: A Comprehensive Guide
Understanding portfolio performance, whether for a self-managed, discretionary portfolio or a non-discretionary portfolio, is vital to determining if the portfolio strategy is working or needs to be
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CAPM Model: Understanding Advantages & Disadvantages
The widely used capital asset pricing model (CAPM)—when put into practice—has both pros and cons. CAPM Model: An Overview The capital asset pricing model (CAPM) is a finance theory that esta
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Residual Income Method: A Comprehensive Valuation Guide
There are many different methods of valuing a company or its stock. One could opt to use a relative valuation approach, comparing multiples and metrics of a firm in relation to other companies withi
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Decoding Annual Reports: A Guide for Investors
A companys annual report is the single most important way for potential investors to understand the financial state of a company. A company annual report is also a marketing tool designed to attract
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Understanding Company Capital Structure: A Guide for Investors
If you are a stock investor who likes companies with good fundamentals, then a strong balance sheet is important to consider when seeking investment opportunities. By using three broad types of meas
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Understanding Internal Rate of Return (IRR): A Comprehensive Guide
The internal rate of return (IRR) is frequently used by companies to analyze profit centers and decide between capital projects. But this budgeting metric can also help you evaluate certain financia
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Understanding EBITDA: What It Is and Its Limitations
Normally, investors focus on cash flow, net income, and revenues as the basic measures of corporate health and value. But over the years, another measure has crept into quarterly reports and account
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Momentum Indicators: A Comprehensive Guide for Traders
What Are Momentum Indicators? Momentrum indicators are technical analysis tools used to determine the strength or weakness of a stocks price. Momentum measures the rate of the rise or fall of s
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Understanding Liquidity Risk: Definition, Causes & Impact
What Is Liquidity Risk? Liquidity is the ability of a firm, company, or even an individual to pay its debts without suffering catastrophic losses. Conversely, liquidity risk stems from the
finance
- Coronavirus Student Loan Relief: Lender Assistance & Resources
- Stock Dividends: Definition, Types & How They Work
- Revenue Per Employee: Definition, Calculation & Importance
- Understanding Cost Structure: Fixed vs. Variable Costs
- Financial Literacy: Understand, Improve & Achieve Your Financial Goals
- Activist Shareholders: Definition, Tactics & Impact
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Choosing a Gold IRA Custodian: 4 Key ConsiderationsInvesting in gold IRAs has certainly become common practice these days, as people have recognized the value of doing this and of securing their future financial stability with the help of this amazi...
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5 Essential Financial Ratios for Personal Finance ManagementImage Credit: AndreyPopov/iStock/GettyImages To assess your overall financial health or focus on a specific area, you can use key financial ratios to detect strengths and weaknesses in your persona...
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Ridesharing's Impact: Convenience, Consumer Perception & the Future of TransportationAmong the many industries millennials have supposedly slain, taxi service is one of the most iconic. There may be some romance to sticking out your thumb and hailing a cab on a city street, but it'...
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Open a Roth IRA: A Step-by-Step Guide to Secure Your FutureYou’ve heard how awesome Roth IRAs are and how starting one now can mean big bucks when you’re older. You’ve even done some research so you have a vague idea of how a Roth IRA works. Now what? How do...