Work in progress refers to unfinished items or projects, including capital investments, and is recorded as an asset on a company’s balance sheet. It is commonly found in manufacturing and large-scale production industries, and can indicate operational problems or future revenue. Accounting rules limit the amount of revenue that can be recognized for unfinished projects. […]
Financial management jobs involve investment and tax protection activities to minimize costs and maximize revenue. There are four main groups of jobs: sales, customer service, account management, and account analysis. These jobs require a combination of investment tools, techniques, and strategies, as well as standard management activities. There is a wide range of financial management […]
An exposure draft is a preliminary version of a public statement that is released for comment before being revised and republished as an official statement. The Financial Accounting Standards Board often uses exposure drafts to set new standards for accounting practices, and public comments are evaluated and considered before finalization. The FASB offers options for […]
A brokerage firm executes trades for investors and may manage internal proprietary accounts. Firm orders can be placed on behalf of a financial institution’s proprietary account or a client’s account. Brokerage firms may also manage their own portfolio of stocks for additional income streams. Large investment banks have full trading desks where professional traders invest […]
The maturity date is when the issuer of a bond must pay the principal amount to the buyer. Bonds can be short-term, intermediate-term, or long-term, and the maturity date is important in calculating yield to maturity. Callable bonds can be redeemed before the stated maturity date. The maturity date refers to the date on which […]
Corporate finance jobs involve raising debt or equity in financial markets to improve an organization’s operations, support growth, and add shareholder value. Investment bankers have various roles, including M&A activities and restructuring. Analysts evaluate transactions and assign ratings that affect shareholder activity. Investment bankers are finance professionals who are front and center in the money-raising […]
The financial market includes primary and secondary markets, as well as submarkets such as the stock, commodity, and money markets. It involves the buying and selling of monetary goods, with little physical component, and is based on the movement of money through capital or raw materials. Buyers and sellers enter into a monetary exchange, with […]
A finance lease allows customers to use an asset while making installment payments to the owner, transferring all risks and rewards of ownership to the customer. This is a common form of leasing for various equipment types, including software and furniture. Interest accrues on the balance owed, and the lessee assumes most of the risk. […]
An emergency fund is recommended to cover three to eight months of living expenses in case of job loss or unexpected expenses. Start by opening a separate savings account and determining the amount to be regularly deposited. It may take years to build, but it can protect against financial disasters. An emergency fund is a […]
A prepaid finance charge is a fee assessed on loans, typically mortgages, when the borrower wants to close before the start of a calendar month. The charge covers the period from the closing date to the first day of the next month and is calculated based on the number of calendar days involved. The charge […]
Behavioral corporate finance studies how decisions made by owners and managers of publicly traded companies affect their values, recognizing that markets are not always efficient. It is important to understand the reasons for decisions made by corporate heads, who may prioritize short-term gains over long-term value. Executives’ actions may be influenced by personal bias, which […]
Corporate finance encompasses financial dealings and operations of a company, including budgeting, investment management, and acquisitions. Its goal is to maximize benefits while minimizing spending. CFOs and their staff manage corporate finance, with some decisions requiring board or shareholder approval. Corporate finance is a broad term used to collectively identify the various financial dealings made […]
Businesses seeking heavy equipment financing can opt for a secured business loan, equipment leasing, or invoice factoring depending on their financial strength and creditworthiness. Financing options are available for various types of equipment, and even companies with poor credit may qualify based on cash flow and accounts receivable. Businesses looking to obtain heavy equipment financing […]
Financial coordinators maintain records and create payment schedules for businesses and organizations. They work with CFOs, EDs, or accounting heads, and their duties vary depending on the organization. They manage limited resources for non-profits, balance bank account performance, and reduce fees and charges. Formal studies in accounting and business administration are preferred, but experience in […]
Intrinsic value is the perceived value of a stock, which may differ from the market price. Investors use various methods to determine intrinsic value, including qualitative and numerical factors, to identify whether a stock is overvalued or undervalued. The accuracy of intrinsic value is subjective and can be challenging to determine. In finance, the intrinsic […]
Fibonacci ratios, discovered by Leonardo Fibonacci, are used in technical analysis to identify price resistance and support levels and turning points in price trends. Elliot Wave Theory uses Fibonacci ratios to identify inflection points in five-wave patterns. Fibonacci ratios are also used to identify retracement levels. While some traders are zealous supporters of these methods, […]
Business financing uses assets as collateral for credit. Accounts receivable, inventory, and property/equipment are commonly used. It’s useful for quick liquidity, lower interest rates, and tailored loans. Transactions are quick and repayment is made with assets ready for sale. Business financing is a means of obtaining a line of credit by using one or more […]
Tailgating in finance refers to executing the same purchase or sale of a security for a client and oneself. It is not illegal but considered unethical by many brokers. It should not be confused with insider trading, which is illegal. Following a client’s lead without researching relevant factors involves risk. While most people think of […]
Candlestick charts provide information about trading highs and lows. They were invented in Japan and became a common financial tracking tool worldwide. White candlesticks indicate price increases, while black ones indicate decreases. Candlestick charts help with technical analysis and decision making on investments. In the financial world, a white candle is completely symbolic. It is […]
International business finance includes corporate finance, foreign exchange markets, global financial systems, and foreign investment policies. It involves analyzing how money moves between countries and identifying and controlling potential risks. Corporate finance plays a central role in establishing capital structure and optimizing rates of return. Currency exchange is important, and global financial systems and foreign […]
