investing
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Understanding the Difference Between Paid-In and Earned Capital
Paid-in capital and earned capital are two forms of equity capital shown in the shareholders' equity section of the balance sheet. Paid-in capital is also referred to as contributed capital that i
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Reporting Stock Sales After Mergers & Splits: A Comprehensive Guide
Calculate your capital gain carefully. Companies declare stock splits for a number of reasons, including to keep the share price low enough to attract ordinary investors. Companies also merge
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Understanding Your 401(k) Options When You Leave a Job
If you rollover a 401(k) your money will continue to grow. When you leave a job, the money you contributed to a 401(k) and the vested portion of any employer contributions are yours to keep.
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Understanding Non-Financial Corporations: A Comprehensive Guide
A docked container ship. For-profit corporations are in business to make money, but they do so in different ways. Investors and government regulators distinguish between financial and non-fin
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Understanding the Drawbacks of Financial Intermediaries
The Disadvantages of Financial Intermediaries The modern capitalist economy relies upon financial institutions to facilitate translations between different parties. For example, if you want t
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Financial Responsibility Letter: Protecting Students & Institutions
The cost of higher education challenges most students and prevents some from attending college. Students sometimes enroll in classes before they've secured the necessary funding, sometimes shuttin
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Understanding & Calculating Residual Dividend Policy: A Comprehensive Guide
Companies often establish a formal dividend policy indicating the proportion of earnings to be paid out to shareholders. A dividend represents the share of earnings that a company distributes
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Understanding STAT vs. GAAP Accounting: Key Differences
"Stat" accounting and GAAP are two sets of principles used in accounting. The former is specific to the insurance industry, while the latter applies to all companies. The two differ in three
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Harmonized Financial Statements: Pros, Cons, and Global Impact
Harmonized financial statements use internationally standardized accounting practices and a uniform reporting format to present the financial information of a company in any country in the world. The
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Understanding Funding at Par: US Bonds & National Debt
US Bonds and the National Debt Funding at par is a term that is used to describe a practice that involves taking in old bonds and issuing new ones at the face value of the old bonds. This is
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Understanding the Link Between Negative Expected Return and Positive Beta
Financial analysts and advisers often use the capital asset pricing model to help determine what level of return an investor should expect when purchasing a particular security and the effects it will
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Risk Aversion vs. Risk Neutrality: Understanding Investor Profiles
Investors have different risk preferences when making investment decisions. Investing in any market is all about risk. No investment is inherently 100 percent safe or guaranteed. Therefore, t
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Debenture Trust Deeds: Understanding the Key Elements & Benefits
Pile of paper-clipped paperwork. A debenture trust deed is a debt instrument that is accompanied by a contract for repayment from the company issuing the debt. The company receives cash to fu
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Understanding a Strong Balance Sheet: Key Indicators & What to Look For
The balance sheet is one of the fundamental financial statements. In the investment world, you often hear people use the term "a strong balance sheet." Many investors consider inves
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Understanding EPS Changes: Calculating Percentage Growth
EPS is a companys net income earned for each share of stock. Earnings per share, or EPS, is the amount of net income a company generates for each share of common stock during an accounting pe
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SEBI Primary Market Guidelines: IPOs & Investor Protection
The primary market in India, like that in other countries, is the market where investors and companies trade stocks, options and other public financial instruments. In 2000 the Securities and Exchange
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Prime Brokerage vs. Custody: Understanding the Differences
Broker showing apartment to a young couple Brokers and custodians, along with clearinghouses, are the primary trade facilitators in a trading cycle. While brokers initiate trades and clearing
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CAPM Calculation in Excel: A Step-by-Step Guide
Excel makes CAPM calculations easy. The Capital Access Pricing Model, or CAPM, allows investors to assess the risk of a stock to decide if the expected gain is worth the risk of the investmen
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Sale-Leaseback Explained: How Companies Unlock Capital & Improve Balance Sheets
Companies release cash by selling property and leasing it back. A sale-leaseback is a strategy that companies commonly use to gain access to capital or to pay down debt. Sale-leasebacks occur
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Investable Assets: A Comprehensive Guide for Investors
Stock market ticker wall in yellow, showing some stocks going up or down. You can calculate your net worth by deducting your total liabilities from your assets. However, assets come in many v
investing
- Cashing a Certificate of Deposit (CD): Your Options & Considerations
- Calculate Your Portfolio Value: A Simple Guide
- Understanding the 1987 Stock Market Crash: Causes & Impact
- Selling Your Panned Gold: A Comprehensive Guide for Prospectors
- Understanding Risk Grades: An Investor's Guide
- Calculate Interest Rates: Present & Future Value Explained
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Removing Student Loans from Your Credit Report: What You Need to KnowStudent loans on your credit report may affect the FICO score negatively. If you are thinking of removing them, it is not always possible. When the information is accurate, you can only wait until i...
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Major Banks Reduce Overdraft Fees: What Consumers Need to KnowThat's good news for consumers. ...
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Understanding Mortgage Escrow Adjustments: Aggregate Adjustment ExplainedThe aggregate adjustment usually reduces the initial mortgage escrow amount. The aggregate adjustment affects the amount of funds that are held in a mortgage borrower's escrow account at ...
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Using Credit Cards for Car Down Payments: Pros & ConsPutting a car down payment on a cred...