finance
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Equity Capital Market: Definition & How It Works
The equity capital market is a subset of the broader capital market, where financial institutions and companies interact to trade financial instruments and raise capital for companies. Equity capital
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Understanding Equity: A Comprehensive Guide for Investors
In finance and accounting, equity is the value attributable to the owners of a business. The book value of equity is calculated as the difference between assetsTypes of AssetsCommon types of assets in
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Economic Order Quantity (EOQ): Definition & Importance
EOQ stands for Economic Order Quantity. It is a measurement used in the field of Operations, Logistics, and Supply Management. In essence, EOQ is a tool used to determine the volume and frequency of o
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Understanding the Envy Ratio in Private Equity
In private equity, the envy ratio is a ratio that shows the price paid by investors in relation to the price paid by the management team for their respective shares of the company’s common equit
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Entry Multiple: Definition & Importance in Private Equity
An entry multiple, commonly used in leveraged buyouts, refers to the price paid for a company as a function of a financial metric. The entry multiple is crucial for private equity firmsTop 10 Private
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Entity Theory: Separating Business & Personal Finances - Definition & Benefits
Entity theory is a concept that advocates for the separation of business transactions and transactions of its owners. The theory states that assets of the owners should not be mixed with the business,
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Understanding English Auctions: A Comprehensive Guide
An English Auction, also referred to as an open cry ascending auction, starts by an auctioneer announcing the suggested opening bid or reserve price for the item on saleInventoryInventory is a current
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Emergency Fund: What It Is & Why You Need One
An emergency fund is spare cash that is used during personal financial distress. Events such as the loss of a job, an illness, or a recession are examples of when many individuals would need to use th
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Emergency Banking Act of 1933: History, Purpose & Impact
The Emergency Banking Act of 1933 was enacted during the Great DepressionThe Great DepressionThe Great Depression was a worldwide economic depression that took place from the late 1920s through the 19
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Electronic Payments Network (EPN): Your Guide to ACH Transactions
The Electronic Payments Network (EPN) is an automated clearinghouse (ACH) system – that is, a computerized electronic funds transfer system that processes both individual consumer and commercial
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Electronic Money Explained: Types, Benefits & How It Works
Electronic money refers to the currency electronically stored on electronic systems and digital databases, as opposed to physical paper and coin money, and is used to make it easier for users to trans
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Electronic Fund Transfer Act (EFTA): Rights & Regulations
The Electronic Fund Transfer Act (EFTA), originally enacted in 1978, is a United States consumer protection law that lays out the rights, responsibilities, and liabilities of parties involved in elect
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Electronic Checks: Definition, How They Work & Benefits
An electronic check is an electronic version of the conventional paper check. It is a form of online payment where money is withdrawn from one account and deposited into another account using the Auto
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Understanding Efficiency Ratios: A Key to Business Performance
Efficiency ratios are metrics that are used in analyzing a company’s ability to effectively employ its resources, such as capital and assets, to produce income. The ratios serve as a comparison
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Effective Annual Rate (EAR): Understanding & Calculation
The Effective Annual Rate (EAR) is the rate of interestInterest ExpenseInterest expense arises out of a company that finances through debt or capital leases. Interest is found in the income statement,
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Effective Annual Interest Rate (EAR): Understanding & Calculation
The Effective Annual Interest Rate (EAR) is the interest rate that is adjusted for compoundingCompound Growth RateThe compound growth rate is a measure used specifically in business and investing cont
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Education IRA: Tax-Advantaged Savings for Education Expenses
An education IRA is an individual savings account used for education expensesExpensesAn expense is a type of expenditure that flows through the income statement and is deducted from revenue to arrive
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Understanding Economic Value of Equity (EVE): A Comprehensive Guide
The economic value of equity (EVE) is a long-term economic measure/indicator of net cash flow. The EVE is calculated by taking into account the present value of all asset cash flows and subtracting th
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Understanding Economic Moats: A Guide to Sustainable Competitive Advantage
The term “economic moat” refers to a long-term competitive advantageCompetitive AdvantageA competitive advantage is an attribute that enables a company to outperform its competitors. It al
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EBITDARM Explained: A Comprehensive Guide to Financial Analysis
EBITDARM stands for Earnings Before Interest, Taxes, Depreciation, Amortization, Rent, and Management Fees. It is a financial metricAnalysis of Financial StatementsHow to perform Analysis of Financial
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Understanding Interest Rates: A Comprehensive GuideAn interest rate refers to the amount charged by a lender to a borrower for any form of debtCurrent DebtOn a balance sheet, current debt is debts due to be paid within one year (12 months) or less. It...
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Actionable Insights for Business Growth: A Practical GuideHaving access to relevant and accurate actionable insights is becoming increasingly important for companies of all sizes. Detailed market intelligence and customer data are getting more acce...
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Simplified 401(k) Transfers: New Regulations ExplainedThere’s one major workplace benefit that anyone leaving a job can and should take with them, it’s their 401(k). The Department of Labor is proposing a new regulation that would make easi...
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Monero Cryptocurrency Soars as Musicians & John McAfee Endorse Privacy-Focused CoinMonero prices today jumped 23.68%, as a CoinDesk report revealed musicians like Mariah Carey and Marilyn Manson are accepting the privacy-oriented cryptocurrency as payment for their music. The cryp...