Corporate finance involves managing a company’s financial activity, including investment banking, valuation, and mergers and acquisitions. Investment banking raises capital for business expansion through stocks, bonds, or securities. Valuation determines the market value of assets to be sold, while mergers and acquisitions combine assets and liabilities to form a larger company. Corporate finance deals with […]
Community development financing is available through grants, loans, and municipal bonds, often set up by governments and private businesses. Funding is awarded to community development groups for projects such as housing and urban development, with loans also available for large-scale projects. Municipal bonds are issued by government-run groups for community building and improvement efforts. Community […]
The financial industry is divided into financial services, investment instruments, and the stock market, each offering various job opportunities. Entry-level jobs require customer service skills, while senior management positions require a master’s degree and experience. Specialized sectors include mortgage underwriting and auto financing. The financial industry can be divided into three broad categories: financial services, […]
Exhibition books are used to record data related to the execution of orders in market exchanges. The NYSE Display Book is a well-known example. Before computers, specialists used notebooks, but today e-books and software packages make it easier to keep up with market activity. An exhibition book is a tool used in many different market […]
Subscription rights allow current investors to maintain their percentage of ownership in a company by purchasing new shares at a discounted price before they are offered on the open market. This benefits both the company and shareholders. Subscription rights are the rights of current investors in a given company to maintain an equal percentage of […]
A gray knight is an uninvited bidder in a corporate acquisition who is not considered a friend or foe of the target company. They are an equitable alternative if the preferred bidder cannot reach an agreement, but may also be a potentially malevolent force waiting for the deal to collapse. Their strategy involves placing a […]
Beating or churning is excessive trading on a client account by a broker to generate more commissions. It is illegal in many markets and subject to fines and imprisonment. It is not always easy to prove, but investors should contact their broker for an explanation and move their account if necessary. Beating is a slang […]
Financial specialists help clients achieve financial goals by providing investment advice, long-term planning, and accepting loan applications. They are employed by banks and accounting firms, and may earn commission based on sales. They may also be licensed to sell investment and insurance products. Command Financial Specialists in the US military provide financial advice to service […]
The finance department’s organizational structure varies depending on the company’s size. It usually includes a CFO, VP, accountants, and a financial analyst. The CFO is responsible for planning and guiding the finances and reports to the CEO. The VP works with accountants to implement plans, while the budget analyst analyzes the budget and suggests adjustments. […]
Yankee CDs are low-risk investment instruments issued by foreign banks in the US, with a minimum face value of $100,000 USD. They have a maturity date and penalties for early withdrawal, but are considered safe and can be sold on the derivatives market. Interest rates are generally low, but vary depending on the bank and […]
A record date is when a company identifies shareholders who will receive a dividend. The ex-dividend date is the first day of the ex-dividend period, and the stock price typically decreases by the amount of the dividend. Mutual funds and asset-backed securities also have record dates. Transactions must be settled before the record date for […]
Futures are a financial derivative obliging the seller to provide an asset to the buyer on an agreed date. They are traded for commodities and financial instruments. Futures trading has a long history, with the first known contract recorded in ancient Greece. Exchanges play a vital role in standardizing contracts, but futures trading carries significant […]
The pooling factor is the proportion of an asset-based or mortgage-backed security that has not been returned to investors, indicating the amount of collateral remaining. It is used to assess value and risk, with a lower factor indicating faster repayment and increased risk. The pooling factor is the proportion of the balance of a particular […]
Trade finance software can streamline the business process and reduce resources required. Solutions can be purchased individually and are designed for financial institutions, importers, and exporters. Automated systems can track import and export activity, and solutions can be designed for different market participants. Trade finance software should keep up with technology trends and respond to […]
Steady state is a stage in the development of a Mortgage Backed Security (MBS) pool, where payments become static and the owner can predict how much interest rate changes will affect profitability. MBS pools are issued by government-affiliated organizations and can include residential and commercial property mortgages. Steady-state economics advocates believe in a sustainable economy, […]
A public ledger is a list of orders to buy or sell securities, maintained by an order book officer. It contains limit orders, which can make it difficult to fulfill an order. Market makers have access to the highest bids and lowest selling prices on the public book to facilitate deals. The public ledger provides […]
Evaluating a company’s financial stability, market position, and growth potential is crucial for owners, investors, and buyers. To do so, gather background information, compare current performance to past performance, and consider future prospects based on economic conditions. Evaluating performance and financial position is a business activity that is important to both business owners and anyone […]
The prior close is the price of a security before the last market close, used for comparison in day-to-day trading and by financial analysts. It can be manipulated by investors to make a stock appear better. It may not reflect what happens after the closing bell, but is still a useful measure. In finance, a […]
Choosing the best corporate finance book depends on the individual’s purpose and area of interest. Methods include reading finance magazines, consulting professionals, and doing internet research or visiting a library. The topic of choosing the best corporate finance book is one that can be approached by considering a number of factors. First of all, the […]
Corporate finance is used to evaluate business opportunities and scenarios based on financial results. It can be quantitative or qualitative, with quantitative techniques using statistical or mathematical formulas to calculate specific results. Qualitative techniques rely on the expertise of managers. Corporate finance is also used to determine financing methods, including debt and equity financing. Corporate […]
