finance
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Internal Audits: Ensuring Efficiency & Compliance - A Comprehensive Guide
An internal audit is performed by companies to evaluate and provide objective assurance that an organization’s internal controls, corporate governance, and accounting processes are operating eff
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Interim Financial Statements: A Comprehensive Guide
An interim statement refers to a financial statement that covers a period of less than a year. Interim financial statements portray the financial performanceFinancial PerformanceFinancial performance
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Interim Dividends: Definition, Payment & Benefits
An interim dividend is the distribution of earnings to shareholders before the end of the fiscal yearFiscal Year (FY)A fiscal year (FY) is a 12-month or 52-week period of time used by governments and
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Interest Tax Shields: Understanding Tax Deductions on Interest Expense
The term “interest tax shield” refers to the reduced income taxes brought about by deductions to taxable income from a company’s interest expenseInterest ExpenseInterest expense aris
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Interest Rate Swaps: A Comprehensive Guide
An interest rate swap is a type of a derivative contract through which two counterparties agree to exchange one stream of future interest payments for another, based on a specified principal amount. I
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Understanding Interest Rate Risk: Definition & Impact
Interest rate risk is the probability of a decline in the value of an asset resulting from unexpected fluctuations in interest rates. Interest rate risk is mostly associated with fixed-income assets (
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Interest Rate Parity (IRP): Understanding the Relationship
The interest rate parity (IRP) is a theory regarding the relationship between the spot exchange rateSpot PriceThe spot price is the current market price of a security, currency, or commodity avai
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Understanding Interest Rates: A Comprehensive Guide
An 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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Understanding Interest Income: A Comprehensive Guide
Interest income is the amount paid to an entity for lending its money or letting another entity use its funds. On a larger scale, interest income is the amount earned by an investor’s money that
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Interest Coverage Ratio (ICR): Definition & Importance
The Interest Coverage Ratio (ICR) is a financial ratio that is used to determine how well a company can pay the interest on its outstanding debtsSenior and Subordinated DebtIn order to understand seni
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Understanding Interest: Costs & Rewards of Borrowing and Lending
Interest refers to the cost of borrowing money or the reward for lending money. Typically, banks charge interest on money borrowed on top of the expected repayment of the principal. At the same time,
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Intercreditor Agreement: Definition & Key Aspects
An Intercreditor Agreement, commonly referred to as an inter-creditor deed, is a document signed between two or more creditorsTop Banks in the USAAccording to the US Federal Deposit Insurance Corporat
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Interbank Market: A Comprehensive Overview of Foreign Exchange Trading
As the name suggests, the interbank market is a market where foreign currency is traded between large privately held banks. The interbank market is what people refer to when talking about the currency
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Understanding Insufficient Funds: Causes & Consequences
“Insufficient funds” is a checking account status where the balance is deficient. It is a banking term that may appear as a notice in bank statementsBank StatementA bank statement is a fin
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Understanding Insolvency: Definition, Causes & Consequences
Insolvency refers to the situation in which a firm or individual is unable to meet financial obligations to creditors as debtsCurrent LiabilitiesCurrent liabilities are financial obligations of a busi
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Initial Outlay: Definition, Examples & Business Implications
An initial outlay refers to the initial investments needed in order to begin a given project. For instance, if opening a new factory, a company would need to purchase new land and machinery in order t
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Information Ratio: A Comprehensive Guide to Risk-Adjusted Returns
The information ratio measures the risk-adjusted returns of a financial asset or portfolio relative to a certain benchmarkDow Jones Industrial Average (DJIA)The Dow Jones Industrial Average (DJIA), al
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![Inflection Point: Math & Business Definition | [Your Brand/Website Name]](https://www.etffin.com/article/uploadfiles/202110/2021100815150492_S.jpeg)
Inflection Point: Math & Business Definition | [Your Brand/Website Name]
In mathematics, an inflection point refers to the point at which the curvature of a function changes its sign. In the business world, the meaning of inflection point is stretched to describe the turni
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![Infinite Banking Explained: Become Your Own Banker | [Your Brand Name]](https://www.etffin.com/article/uploadfiles/202110/2021100815150403_S.jpeg)
Infinite Banking Explained: Become Your Own Banker | [Your Brand Name]
Infinite banking refers to a process by which an individual becomes his or her own banker. The infinite banking concept was created by Nelson Nash. In his book, “Becoming Your Own Banker,”
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Understanding Industry Knowledge: Benefits & Importance
Industry knowledge is a term that describes the accumulation of knowledge and awareness of the intricacies of what is happening to specific industries of interest. Knowledge of an industry from a stak
finance
- Creating a Living Will: What to Include & Why It Matters
- Understanding Earnings Volatility: Risk & Stock Price Prediction
- Achieve Financial Freedom: A Step-by-Step Guide to Saving $10,000 in One Year
- Market Value vs. Investment Value: Understanding the Key Differences
- House Hacking: A Beginner's Guide to Living Rent-Free
- Donor-Advised Funds: Maximize Charitable Tax Deductions | [Your Company Name]
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Understanding Hedging Strategies: A Comprehensive GuideHedging is a financial strategy that should be understood and used by investorsPrivate Equity vs Venture Capital, Angel/Seed InvestorsCompare private equity vs venture capital vs angel and seed invest...
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Understanding Non-Profit Organizations (NPOs): Definition & PurposeAn NPO (non-profit organization) is an entity that is driven by a dedication to a social cause in the areas of religion, science, research, or educational settings or advocating for a specific shared ...
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Top 11 Retirement Plans: A Comprehensive Guide to Pros & ConsIf you have young kids or you’re still building your career, retirement may not be top of mind at this point in your life. But someday, if you’re lucky and save on a regular basis, it wi...
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Adding Co-Owners to a Car Title with a Loan: What You Need to KnowA car's title dictates ownership of the vehicle. The name that appears there controls what happens to the car – they can sell it, refinance it or even just give it away. But states have their own ...