How Do You Find the Lower Quartile of a Data Set?

Response: The best way is to use a spreadsheet and the QUARTILE function. For example, the function "=QUARTILE(A1:A53,1)" returns the first (lower) quartile of your dataset.


What Is the Difference Between the Equity Method and the Cost Method?

Response: Under the equity method of accounting, dividends are treated as a return on investment. They reduce the value of the investor's shares. The cost method of accounting, however, treats dividends as taxable income.


How Are Economic Decisions Made in a Planned Economy?

Response: In a planned economy, important economic decisions are made through a combination of political or administrative bodies. Typically, this involves local administrators communicating their capacity and needs to central authorities, who use that information to create a nationwide economic plan. This plan may go through several rounds of revision before it is submitted to the government or legislature.


Response: The simplest way to invest in the S&P 500 Index (or any other stock market index) is to buy shares of an index fund that targets that index. These funds invest in a cross-section of the companies represented on the index, meaning that the fund's performance should mirror the performance of the index itself.


How Do You Write Articles of Incorporation?

Response: Articles of incorporation are filed with your state's Secretary of State office. That department provides a form that requests a variety of information about your newly forming corporation. Upon completing the required fields, the form is submit back to the Secretary of State for review. The state agency that reviews the form will contact you should they have any clarifying questions regarding your information.


What Is Good About Reducing the Capital Gains Tax Rate?

Response: Proponents of a low rate on capital gains argue that it is a great incentive to save money and invest it in stocks and bonds. That increased investment fuels growth in the economy. Businesses have the money to expand and innovate, creating more jobs.They also point out that investors are using after-tax income to buy those assets. The money they use to buy stocks or bonds has already been taxed as ordinary income, and adding a capital gains tax is double taxation.


Why Is Funds Transfer Pricing an Important Tool for Banks?

Response: Funds transfer pricing is a tool that banks and other financial institutions use to help them determine whether their business is profitable. They can also use this tool as a way to evaluate the profitability of different parts of their companies, including product offerings. Not having a system like this in place can lead to mispricing of products and services, and can increase the risk of volatility among other things.


Response: Investors can capitalize on gains and reduce risk by using exit strategies such as the 1% rule, a percentage-based exit, a time-based exit, or selling their equity stake in a business to other investors or family members. Investors typically set an exit strategy before entering into an investment, as it helps to manage emotions and determine if there is a favorable risk-return tradeoff.


Response: A line graph may be a simple line graph, multiple line graph, or compound line graph. Each type of graph has a varying degree of dependent variables and how the user wishes to display the relationship between these variables.


What’s the difference between tangible and intangible assets?

Response: There are two types of asset categories: tangible and intangible.Tangible assets are typically physical assets or property owned by a company, such as computer equipment. Tangible assets are the main type of assets that companies use to produce their product and service.Intangible assets don’t physically exist, yet they have a monetary value since they represent potential revenue. A type of intangible asset could be a copyright to a song. The record company that owns the copyright would get paid a royalty each time the song is played.There are various types of assets that could be considered tangible or intangible, some of which are short-term or long-term assets.


Response: While the JD is the only degree necessary to become a professor of law or to obtain a license to practice law, it is not a research degree. However, there are two types of research degrees available to individuals who are interested in studying law. These are the Master of Laws (LL.M.) degree, which typically requires a JD as a prerequisite before pursuing study, and the Doctor of Juridical Science (SJD/JSD) degree, which typically requires a Master of Laws as a prerequisite.


What Percentage of the U.S. Population Has $2 million?

Response: Surveys find different figures, but the latest information from the U.S. Census Bureau 2021 survey shows that one in 10 households (10%) have a net worth of more than $1.41 million.


Do Online Brokers Offer Pre-Market Trading?

Response: Almost all online brokers offer pre-market trading, although the hours differ from one broker to the other. Here's a sample of pre-market trading hours at select online brokers as of Dec. 21, 2021 (note that these hours may be subject to change):TD Ameritrade offers pre-market trading from 7 a.m. EST to 9:28 a.m. EST.At Charles Schwab, pre-market orders can be placed between 8:05 p.m. (on the previous trading day) and 9:25 a.m. EST, and are eligible for execution between 7 a.m. and 9:25 a.m. EST.E*TRADE offers pre-market trading from 7 a.m. EST to 9:30 a.m. EST.Interactive Brokers has pre-trading for its "IBKR Pro" accounts from 4 a.m. EST to 9:30 a.m. EST, and for its "IBKR Lite" accounts from 7 a.m. EST to 9:30 a.m. EST.At Robinhood, the pre-market trading session is from 9 a.m. EST to 9:30 a.m. EST; trades may still be executed as early as 8:58 a.m. EST.Webull allows pre-market trading from 4 a.m. EST to 9:30 a.m. EST.


Response: No, the U.S. does not have a federal sales or value-added tax. Most states impose some version of these taxes, but the revenue generated is not nationally distributed.


Response: In a capitalist system where firms compete with one another to sell their goods, the question of where profits come from has been one of interest among economists. Karl Marx, for instance, argued that profits arise from surplus labor extracted from workers by business owners. Modern thinkers suggest that profits compensate for the risk that entrepreneurs take on when starting a business. Others argue that profits arise from inefficient markets and imperfect competition.


Response: Supply may be broken into total supply, short-term supply, and long-term supply. Each measures the amount of goods available in a market differently, and different agencies may use each set of information differently.


What Is the Difference Between an Incidence Rate and a Prevalence Rate?

Response: The prevalence rate is the relative proportion of total cases observed in a population over some period of time.The incidence rate is the rate of new cases observed in a population over some period of time.


What Is a Principal-Agent Problem Example?

Response: A common example of the principal-agent problem is that of C-level managers and shareholders. C-level managers may make decisions in their best interest that are not in the best interest of shareholders. This could involve enacting certain policies, making deals with politicians, and so on, that may hurt the company but benefit the manager. Tying the C-level manager's compensation to the performance of the company would be a way to overcome this conflict.


What Is Unique About a Retirement Money Market Account?

Response: Money in a retirement money market account is governed by a retirement plan. This can place some limits on what you can do with the money in this type of money market account. For example, it means you can’t withdraw money from your retirement money market account until you have reached a certain age. On the flip side, the money in the account can grow tax-free or tax-deferred, although it shouldn't be left in a money market account for long. You may be able to maximize returns by taking the money and investing it in securities like stocks.


Do I Have to Sell my Shares During a Buyback?

Response: No, you are not required to sell your share back to the company.


What Happens When You Default on a Payment?

Response: Your account is ultimately sent to a debt collection agency that tries to recover your outstanding payments when you default on a loan. Defaulting on any payment will reduce your credit score, impair your ability to borrow money in the future, lead to charged fees, and possibly result in the seizure of your personal property.


Response: Landlords budget and pay for improvements by offering a tenant improvement allowance or through rent discounts. They may also pay by offering the tenant a package of modifications from which they can choose. The tenant is normally responsible for any additional costs that go over the budget.


Response: The best way to buy Norwegian stocks is if you are able to trade on the Oslo Stock Exchange. These shares will be the most liquid and your orders will fill the fastest. However, you can still trade Norwegian stocks on markets in the United States by purchasing something called an American Depositary Receipt (ADR). An ADR is a certificate that you purchase on a U.S. exchange that represents a specified number of shares of a foreign company's stock. As of May 12, 2022, there are only three Norwegian companies with ADRs listed on U.S. exchanges: Equinor (EQNR), Idex Biometrics (IDBA), and Opera (OPRA).


How Do Employers Determine Contribution Amounts to a Profit-Sharing Plan?

Response: Employers typically use one of two methods to determine contribution amounts. With a comp-to-comp method, the total amount of compensation given to all employees is calculated. Next, each employee's compensation is divided by the total compensation, yielding a percentage that establishes each employee's portion of the profit. The higher an employee's salary, the greater the percentage of the profits that the person receives. Less commonly, a company may give the same percentage of profits to every employee, regardless of that employee's salary.


Response: There is nothing unique about Bitcoin rehypothecation compared to other securities. Bitcoin rehypothecation is the act of leveraging the asset Bitcoin into debt that is used to finance future investments, though the party taking out the loan on the collateral does not own the Bitcoin. In this example, because Bitcoin is highly volatile, the investor is at greater default risk compared to other securities as a single margin call may unwind all of their positions.


Response: Redlining is the now-illegal discriminatory practice of denying credit to residents of certain areas based on their race or ethnicity. Sociologist John McKnight coined the term in the 1960s to describe maps created by the Home Owners’ Loan Corporation (a U.S. government agency) that marked racial and ethnic minority neighborhoods in red, labeling them “hazardous” to lenders.


Response: Social networks are important because they allow people to develop relationships that might not be possible due to distances of place and time. They also help boost business productivity when used for public relations, marketing, and advertising purposes.


Where Can Socially Responsible Investments Be Made?

Response: They can be made into individual companies that have good social value or through a socially conscious mutual fund or exchange-traded fund (ETF).


What Are Some Examples of Variable Costs?

Response: Common examples of variable costs include costs of goods sold (COGS), raw materials and inputs to production, packaging, wages, commissions, and certain utilities (for example, electricity or gas that increases with production capacity).


How Do You Calculate the Market Value of a Company?

Response: For publicly traded companies, the market value refers to the market capitalization: the market price of shares trading on the stock exchange, multiplied by the circulating number of shares.


Response: A Beta of 1.0 for a stock means that it has been just as volatile as the broader market (i.e., the S&P 500 index). If the index moves up or down 1%, so too would the stock, on average. Betas larger than 1.0 indicate greater volatility - so if the beta were 1.5 and the index moved up or down 1%, the stock would have moved 1.5%, on average. Betas less than 1.0 indicate less volatility: if the stock had a beta of 0.5, it would have risen or fallen just half-a-percent as the index moved 1%.


Response: If a price change for a product doesn’t lead to much, if any, change in its supply or demand, it is considered inelastic. Generally, it means that the product is considered to be a necessity or a luxury item for addictive constituents. Examples would be gasoline, milk, and iPhones.


Response: Generally, brokerages make money by charging various fees and commissions on transactions they facilitate and services they provide. The online broker who offers free stock trades receives fees for other services, plus fees from the exchanges.Full-service brokerages increasingly charge a so-called wrap fee, an all-in-one charge for all or most services, This is usually 1% to 3% of the amount in the client's account per year and covers advisory services and investment research as well as trading fees.


How Did Brexit Change MiFID II in the UK?

Response: Post-Brexit, the U.K. no longer needed to align with EU regulations, including MiFID II. Initially, the U.K. incorporated much of MiFID II into its law, providing needed continuity and stability in its financial markets at a turbulent moment. Since Amsterdam’s stock market took over from London post-Brexit as the top trading market in the EU and U.K., the U.K. has been looking for ways to put its markets front and center in the region. The U.K.’s push has been toward “sustainable” deregulation, including the so-called Edinburgh reforms announced in December 2022 and further proposals in December 2023, which some hoped would surgically remove all vestiges of EU rules left in its financial system. Thus far, the U.K.’s room for maneuver has not been as capacious as Brexit promised, given the need to prevent post-2008 backsliding and to remain aligned with global standards to engage in the global market.


Is Pareto Efficiency Supported by Perfect or Imperfect Competition?

Response: Pareto efficiency is supported by perfect competition. This is often in contrast to imperfect competition where there is often a greater opportunity for higher returns and better distribution when considering the prospective innovation and growth of the market size.


How Do Triangles Work in Technical Analysis?

Response: Triangles are chart patterns used in technical analysis. Named because they look like triangles, these patterns connect the beginning of the upper trendline to the beginning of the lower come. The upper line connects the highs while the lower line connects the lows in that security.


Why Do Taxes Owed to the IRS and Tax Amounts on Financial Statements Differ?

Response: On balance sheets, the tax amounts indicate liabilities that affect the organization’s value. Taxes due within 12 months are current liabilities and are designated as income tax payable. Taxes to be paid in the later periods are designated as deferred tax liabilities.


What Is Share Oversubscription and Undersubscription?

Response: An oversubscription takes place when demand for shares is higher than anticipated. In this kind of scenario, prices can rise significantly. Investors end up receiving a lower amount of shares for a higher price.An undersubscription occurs when demand for shares is lower than a company expects. This situation causes the stock price to drop. This means that an investor gets more shares than they expected at a lower price.


Do I Pay More Interest in the Beginning of my Loan or the End?

Response: Amortized loans typically start with payments more heavily weighted toward interest payments.


Where Is Retained Earnings on a Balance Sheet?

Response: Retained earnings can typically be found on a company’s balance sheet in the shareholders’ equity section. Retained earnings are calculated through taking the beginning-period retained earnings, adding to the net income (or loss), and subtracting dividend payouts.


Response: Different welfare programs have their own eligibility requirements including meeting income limits, offering proof that you are a U.S. citizen or eligible non-citizen, and providing information about family size.


How Do Interest Rate Futures Differ from Traditional Bond Investments?

Response: Interest rate futures are derivative contracts that speculate on the future movements of interest rates, while traditional bond investments involve purchasing debt securities with fixed or variable interest payments. Futures allow for leverage and hedging against interest rate changes, while bonds provide regular income and return of principal at maturity.


Response: Yes. Investors who hold the cryptocurrency ETH can use online exchanges such as Coinbase, Kraken, and Gemini for this process. Just set up an account at the exchange, link a bank account, and send ETH to the exchange account from an Ethereum wallet. Place an order on the exchange to sell ETH. Then, once sold, transfer the U.S. dollar proceeds to the linked bank account.


Should I Accept the First Salary I'm Offered?

Response: In most cases, it is acceptable to try and negotiate. If you do not succeed, it is unlikely that you will lose the first offer altogether. Moreover, many companies these days expect some degree of negotiation and therefore start with lower offers than they are willing to make.


Response: A good dependency ratio is a low dependency ratio. A low dependency ratio indicates that there is a sufficient number of people in the workforce that can support the dependent population. Lower dependency ratios typically signify better healthcare for aging adults as well as higher pensions. A high dependency ratio, on the other hand, indicates stress on the economy as the dependent population is too large to be supported by the workforce.


Who Created the Idea of Checks and Balances?

Response: The idea of checks and balances, which is a separation of power, was first proposed by the Greek statesman, Polybius, in reference to the government of Ancient Rome. During the Age of Enlightenment, French philosopher, Baron de Montesquieu, discussed in his work, The Spirit of Laws, the need for the separation of powers to prevent despotism.


How Do You Calculate Trailing Twelve Months (TTM)?

Response: Trailing twelve months' calculations will depend on which financial metric is being considered. In general, TTM calculations will either (1) add up the figures from the previous 12 months (or four quarters) as a sum or (2) take the average or weighted average of the previous 12 months' figures.


Response: A disciplinary action can be formal or informal. Formal actions can involve a fine, a fine and order for restitution, suspension, or expulsion from the industry. Informal actions can include cautionary letters and orders to fix a particular problem.


Response: McKinsey & Co. is a global consulting and accounting firm founded by University of Chicago management professor James O. McKinsey in 1926. The firm specializes in management consulting for a wide range of corporations, governments, and other organizations.


Response: Warehouse lenders charge their clients a small fee for funding, similar to an origination fee for a mortgage. They also charge interest for the time period that the money is extended.


How Do I Calculate My Net Investment Income Tax?

Response: You can use IRS Form 8960 to calculate your net investment income tax. You can also calculate it yourself by adding together all your investment income and subtracting any related fees and expenses.Then determine your modified adjusted gross income.You pay 3.8% on whichever is less—either your net investment income or the portion of your MAGI that exceeds your tax filing threshold as set by the Internal Revenue Service.


Response: Utility patents are good for up to 20 years. During that time period, the patent holder may have to pay maintenance fees to maintain the patent.


What Does the Labor Force Participation Rate Formula Measure?

Response: The labor force participation rate measures a country’s active workforce of people 16 and older. It includes people who have stopped looking for work but still want to work. The official unemployment rate does not count those discouraged workers.


Response: For the 2023-2024 academic year, a Harvard MBA costs approximately $115,000. Of this, approximately $75,000 is tuition, with the rest of the costs related to health insurance, books, supplies, and housing.


What Is a Purchase Money Security Interest Under the UCC?

Response: A PMSI under the Uniform Commercial Code is an exception to the first-in-time creditor prioritization rule. The UCC states that creditor priority for secured interests is often dictated by who was the first secured creditor (or the timing of when their interest occurred). The PMSI exception allows for creditors who may not be first to still secure an interest in collateral, should they meet filing requirements.


Response: No. The FAANG stocks are all easy to acquire, in the sense that they are publicly traded companies with substantial daily trading volumes. They are also routinely included in popular exchange-traded funds (ETFs). However, investors who believe that the FAANG stocks may be overvalued would argue that they are difficult to acquire at an economical price. These investors may be tempted to delay purchasing FAANG stocks, waiting for their valuations to decline.


Response: A stabilization fund is an instrument created by a government that holds funds for the purpose of stabilizing an economy.


What are the benefits of evergreen funding?

Response: Evergreen funding prevents a company from growing too fast and collapsing as a result of that growth. The company knows that the money is available but is prevented from spending it unwisely and hastily.


Response: High-frequency trading is fast. It can be as fast as 10 milliseconds. In some cases, it can be even less to execute a large batch of trades.


Can Hysteresis Be Mitigated Through Structural Reforms?

Response: Preemptive structural reforms involve anticipating potential sources of hysteresis and implementing changes to enhance the flexibility and resilience of the economy. Labor market reforms, regulatory adjustments, and initiatives promoting innovation can mitigate the impact of economic shocks, though there's usually greater risk in longer-term policies compared to short-term strategies.


What Is the Difference Between a Nonce and a Hash?

Response: A nonce is a temporary value used in the process of generating a hash, while a hash is a permanent identifier for a block. A nonce is 32 bits long, while a hash is 256 bits long.  A nonce is used only once for a particular block, while a hash is unique to the block header and cannot be reversed to obtain the original data. Nonces are used to make it difficult to generate valid hashes, which helps to secure the Bitcoin blockchain.


What are the fundamental components of a gap analysis?

Response: Gap analysis must always start with an analysis of a company’s current position. Without understanding where it currently is, a company can’t adequately make a plan to get to where it wants to go. In addition to identifying where it is today and where it wants to be in the future, gap analysis entails crafting a plan with implementation steps that can be tracked and measured to hold change managers accountable.


How Does the IRS See Active vs. Passive Participation in Generating Income?

Response: So-called material participation in an activity that generates income is identified as active if it is determined to be regular, continuous, and substantial. This kind of participation must pass the material participation tests devised by the IRS. Passive participation that generates income is characterized as the opposite of active—it's activity that is not regular, continuous, or substantial.


What Happens If I Don't Pay My NSF Fees?

Response: Customers don't have an option to avoid paying NSF fees, as the bank automatically deducts them from the account.


Response: It's a consumer protection that prevents insurance companies from ending coverage due to a misstatement by the insured after several years have passed.


Can a Store Print Your Credit Card Number on Your Receipt?

Response: Under the federal Fair and Accurate Credit Transaction Act (FACTA), merchants must "truncate" your credit or debit card number on electronically printed receipts, showing no more than the last five digits (there is no such limit on handwritten or similar receipts). They are also prohibited from including your card's expiration date. These rules are meant to offer some protection against identity theft.


Response: Nike, Mcdonald's, Apple, Google, Disney, and Amazon have some of the most recognizable and valuable brands.


What Are the 5 Requirements of Adverse Possession?

Response: Although the requirements for adverse possession may vary significantly between jurisdictions, the following are the typical requirements that need to be met:The possession of the property must be continuous and uninterrupted.The occupation must be hostile and adverse to the interests of the true owner, and take place without their consent.The person seeking adverse possession must occupy a property in a manner that is open, notorious, and obvious.Possession of the property must continue for the state's predetermined statutory period, which may vary from three to 30 years.The property must be occupied exclusively by the person seeking adverse possession.


Response: Creating a SWOT analysis involves identifying and analyzing the strengths, weaknesses, opportunities, and threats of a company. It is recommended to first create a list of questions to answer for each element. The questions serve as a guide for completing the SWOT analysis and creating a balanced list. The SWOT framework can be constructed in list format, as free text, or, most commonly, as a 4-cell table, with quadrants dedicated to each element. Strengths and weaknesses are listed first, followed by opportunities and threats.


Can an Option's Expiration Date Be Extended?

Response: In the standardized world of exchange-traded options, the expiration date is a fixed term and cannot be extended. Once an option reaches its expiration date, it either gets exercised if it is ITM or expires worthless if it is ATM or OTM. There are no provisions for extending the expiration date for these types of options.


What Is Goodness-of-Fit in the Chi-Square Test?

Response: The chi-square test whether relationships exist between categorical variables and whether the sample represents the whole. It estimates how closely the observed data mirrors the expected data, or how well they fit.


How Does the Endowment Effect Effect Buyers?

Response: The endowment effect doesn't just impact sellers. Buyers are often more willing to sell items for more money than what they would buy that same item for. For this reason, there is naturally dissonance between the prices offered and prices sought after for many types of trades.


Response: A leveraged buyout (LBO) is when one company attempts to buy another company, borrowing a large amount of money to finance the acquisition. The acquiring company issues bonds against the combined assets of the two companies, meaning that the assets of the acquired company can actually be used as collateral against it. Although often viewed as a predatory or hostile action, large-scale LBOs experienced a resurgence in the early 2020s.


Response: Weather derivatives work as a contract between a buyer and a seller. The seller of a weather derivative receives a premium from a buyer with the understanding that the seller will provide a monetary amount in case the buyer suffers an economic loss due to adverse weather or if any adverse weather occurs. If no adverse weather event occurs, then the seller makes a profit through the premium paid.


Response: In the U.S., the Consumer Price Index (CPI), which is produced by the Bureau of Labor Statistics (BLS), is the most widely used measure of inflation. It influences government policy and the cost of borrowing money. However, like other measures, it isn’t perfect and won’t reflect changing living costs for all.


What Is the Difference Between Taxable Income and Distributable Net Income?

Response: A trust's taxable income includes interest income, dividends, and capital gains, and it subtracts any fees, tax exemptions, and capital losses. For the DNI calculation, capital gains are subtracted back out, while tax exemptions and capital losses are added back in.


Should I Choose a Retail Bank, Credit Union, or Commercial Bank?

Response: You should consider whether you want to keep both business and personal accounts at the same bank, or whether you want them at separate banks. A retail bank, which has basic banking services for customers, is the most appropriate for everyday banking. You can choose a traditional bank, which has a physical building, or an online bank if you don't want or need to physically visit a bank branch. You might consider a credit union, which is a nonprofit institution and is available to serve the needs of people with a common employer, labor union, or professional interest.


Has the Efficient Markets Hypothesis Any Validity?

Response: The validity of the EMH has been questioned on both theoretical and empirical grounds. There are investors who have beaten the market, such as Warren Buffett, whose investment strategy focused on undervalued stocks made billions and set an example for numerous followers. There are portfolio managers who have better track records than others, and there are investment houses with more renowned research analysis than others. EMH proponents, however, argue that those who outperform the market do so not out of skill but out of luck, due to the laws of probability: at any given time in a market with a large number of actors, some will outperform the mean, while others will underperform.


What Gets Traded on the NY Mercantile Exchange?

Response: Trading on the NYMEX includes a wide variety of trading options such as oil futures, metals futures, energy futures, and other commodities like agricultural products and others. Unlike other market types, NYMEX doesn't trade in options or equities.


Response: Tenor basis risk is the risk that arises when a basis swap occurs. Despite re-pricing on the same date, being in the same currency, and being linked to the same benchmark, problems could arise when they re-price if they do so for different periods or tenors.


What Is a Trailing 12 Months Profit & Loss?

Response: TTM P&L keeps a running tab of how well an investment or project has performed over the prior twelve-month period. It takes the monthly or quarterly returns over that time period and reports a weighted average profit or loss figure.


Did Michael Bloomberg Run for President?

Response: Yes. Former New York City mayor, Michael Bloomberg, announced his candidacy in 2019 entering the 2020 presidential race but he dropped out of the race in March 2020.


Response: The NAVPS values of mutual funds are updated once a day after the U.S. stock market closes. Closed-end funds do not have to update their NAVPS daily.


Response: The most obvious barriers to entry are high startup costs and regulatory hurdles which include the need for new companies to obtain licenses or regulatory clearance before operation. Also, industries heavily regulated by the government are usually the most difficult to penetrate. Other forms of barrier to entry that prevent new competitors from easily entering a business sector include special tax benefits to existing firms, patent protections, strong brand identity, customer loyalty, and high customer switching costs.


Response: Consider the example of a car manufacturer preparing the assembly and distribution of a vehicle. The raw materials acquire are tangible assets, and the warehouse in which the raw materials are stored is also a tangible asset. The manufacturing building and equipment are tangible assets, and the finished vehicle to be sold is tangible inventory.


Response: Consider an employee who has worked at a large tech firm for five years. Under the company’s ESOP, they have the right to receive 20 shares after the first year, and 100 shares total after five years. When the employee retires, they will receive the share value in cash. Other types of stock ownership plans may be offered instead of an ESOP. They include stock options, restricted shares, and stock appreciation rights, among others.


Response: What works for one person might not work for another. There is no such thing as a perfect asset allocation model. A good asset allocation varies by individual and can depend on various factors, including age, financial targets, and appetite for risk. Historically, an asset allocation of 60% stocks and 40% bonds was considered optimal. However, some professionals say this idea needs to be revised, particularly given the poorer performance of bonds in recent years, and say other asset classes should also be introduced to portfolios.


Response: Moody's and Fitch Ratings are two credit rating agencies that analyze how creditworthy a company is. These ratings help investors make decisions about their investments. Both agencies provide sovereign credit ratings for countries to help international investors make investing decisions.


Why Would a Company Choose a Voluntary Liquidation?

Response: The reasons are numerous, ranging from unfavorable business conditions that threaten the company’s future to the loss of a key figure that the ownership does not think it can survive without. The company may have been designed to be in business only for a set amount of time or for a specific purpose that has been fulfilled. The company could also be seeking tax relief or looking to reorganize and transfer assets to another company.


How Is a Convertible Preferred Share Different from a Regular Preferred Share?

Response: Convertible preferred shares give their holders the option of converting them into a set amount of common stock shares in the future. This gives the shareholder the potential benefit of capital appreciation in addition to the guaranteed benefit of a regular dividend.As a result, convertible preferred shares will often trade at a relative premium and offer a lower dividend rate than ordinary preferred shares.


What Federal Laws Protect Credit Card Holders?

Response: Credit card holders are protected by a number of federal, as well as state, laws. The most recent major law on the federal level is the Credit Card Accountability Responsibility and Disclosure Act of 2009, also known as the CARD Act, which amended the Truth in Lending Act. Its provisions include clearer disclosure of credit terms and limits on the fees that lenders can charge.


Response: M4 money is a classification of money in the United Kingdom that includes money that is circulated amongst the public, non-financial institutions, private sector retail and wholesale banks, and building society deposits.


What Is the Formula for Central Limit Theorem?

Response: The central limit theorem doesn't have a formula used in its practical application. Its principle is simply applied. With a sufficiently large sample size, the sample distribution will approximate a normal distribution, and the sample mean will approach the population mean. So if we have a sample size of at least 30, we can begin to analyze the data as if it fit a normal distribution.


Response: Media kits should be an essential part of the toolbox for every business endeavor. You never know when you might need to make your company information easily accessible. It is also a great marketing tool that is usually less expensive than most marketing campaigns.


Response: Risk reversal is the same strategy as a zero cost collar. You sell a call and buy a put on a long position to minimize the risk of significant losses.


Which Factors Impact a Product's Life Cycle?

Response: Countless factors can affect how a product performs and where it lies within the product life cycle. In general, the product life cycle is heavily impacted by market adoption, ease of competitive entry, rate of industry innovation, and changes to consumer preferences. If it is easier for competitors to enter markets, consumers change their mind frequently about the goods they consume or the market becomes quickly saturated. Then, products are more likely to have shorter lives throughout a product life cycle.


Response: In banking, the Beneficial Ownership Rule is a regulatory requirement for banks to collect information on the beneficial ownership of an account at the time that the account is opened. This is intended to prevent money laundering and tax evasion by identifying the actual owners of the legal entity that opens an account.


What Was Joseph Stiglitz's Contribution to the World Bank?

Response: Joseph Stiglitz challenged the policies of the international financial community. Stiglitz criticized the conventional wisdom that dominated policymaking at the World Bank, the International Monetary Fund, and the US Treasury Department.His opinions covered such topics as the failure of shock therapy and transition economics, and the limits of capital market liberalization.


Response: The Fair Housing Act is a federal law that protects people from discrimination when they rent or buy a home, get a mortgage, seek housing assistance, or partake in other housing-related activities. The Act prohibits discrimination in housing based on race, color, national origin, religion, sex (including gender, gender identity, sexual orientation, and sexual harassment), familial status, and disability. The Fair Housing Act is also known as Title VIII of the Civil Rights Act of 1968.


Response: tZero offers companies a choice of the blockchain they wish to be tokenized on. The blockchains to choose from are Ethereum, Tezos, Algorand, and others.


What can be used as collateral for a bail bond?

Response: Bail bondsmen accept various forms of collateral, including real estate, cars, credit cards, stocks, bonds, and jewelry.


How Is ESG Investing Different From Sustainable Investing?

Response: ESG and sustainability are closely related. ESG investing screens companies based on criteria related to being pro-social, environmentally friendly, and with good corporate governance. Together, these features can lead to sustainability. ESG, therefore, looks at how a company's management and stakeholders make decisions; sustainability considers the impact of those decisions on the world.


Response: As a subsidiary functions as a separate entity, it usually has its own management team and CEO. However, the parent company will get a significant say in who runs the company and who sits on its board of directors.


Response: Procurement can be carried out in several ways. Organizations may submit an open tender to allow competitive bidding among potential suppliers. They may also restrict the number of bidders or establish criteria for who is allowed to bid. As an alternative to an auction process, an organization may solicit a request for proposals (RFP), where applicants compete with one another on price and competencies. Sometimes procurement is done under contract with a single source or small group of exclusive suppliers.


What Is the Difference Between Accounting and Finance?

Response: Accounting is one aspect of finance that tracks day-to-day cash flows, expenses, and income. Accounting tasks include bookkeeping, tax preparation, and auditing.


Response: There are four phases of market cycles: the accumulation phase, mark-up phase, distribution phase, and downturn phase. The first two phases could be considered mirror images of the others. Accumulation is when investors and businesses are scaling back into the market and increasing their exposure, whereas distribution is the opposite, and is a period when investors start shaving exposure from their positions. Mark-up is an increase in price while a downturn is a decrease.


Response: A mean is a metric used in statistics and research. It is the average for at least two numbers. The mean may be determined by adding up all the numbers and dividing the result by the number of numbers in that set. This is known as the arithmetic mean. You can determine the geometric mean by multiplying the values of a data set and taking the root of the sum equal to the number of values within that data set.


Response: Using ADTV in trading offers several benefits, including assessing security liquidity, evaluating the overall market's activity, analyzing volatility, trade execution optimization, and managing risk.


Response: The ultimate goal of money management is to maximize wealth.


Response: Consider company A trades on the S&P 500 at a 10% rate of return. Meanwhile, it has a beta of 1.1, expressing marginally more volatility than the market. Presently, the T-bill (risk-free rate) is 1%. Using the capital asset pricing model (CAPM) to determine its cost of equity financing, you would apply Cost of Equity = Risk-Free Rate of Return + Beta × (Market Rate of Return – Risk-Free Rate of Return) to reach 1 + 1.1 × (10-1) = 10.9%.


Can an Insurance Company Reject a Proof of Loss?

Response: If you provide false information in the proof of loss, the insurer might reject it or even deny the claim. Typically, the insurance company requires you to submit the form within a specified period, such as 30 or 60 days. In some cases, filing the form later than the due date may result in a claim denial. However, some state insurance codes prohibit a provider from denying a claim strictly based on a policyholder filing a proof of loss form after its due date.


Response: In investing, indexing is a passive investment strategy. You create a portfolio that tracks a common market index, such as the S&P 500 with the goal of mimicking the index's performance. As a strategy, indexing offers broad diversification, as well as lower expenses, than investing strategies that are actively managed.


Response: First, you need to know if you have any type of income at all. Consider avenues in which you received compensation in return for something, whether it was time spent working a job or profit for selling something.Then, compare your activity against IRS guidance manuals to determine if that activity is earned or unearned income. Very broadly speaking, if you earned money for a job, it was likely earned income.


Response: Gwei gas price is the fee paid to the network and transaction validators for the computational work of verifying a transaction. The standard transaction fee is 21,000 gwei.


Response: The main limitation of APT is that the theory does not suggest factors for a particular stock or asset. One stock could be more sensitive to one factor than another, and investors have to be able to perceive the risk sources and sensitivities.


Response: A trustee administers a trust based on the instructions left by the grantor. This can include communicating with beneficiaries, allocating funds to investments, distributing payments according to instructions, and much more.


What Tax Form Do I Need to Fill Out If I Purchase U.S. Series I Savings Bonds With My Tax Refund?

Response: If you use your income tax refund to purchase U.S. savings bonds, complete and file IRS Form 8888 with your tax return. The IRS will arrange for your U.S. savings bonds to be mailed to you.


What Are Example of Non-U.S. Government Bonds?

Response: Foreign governments around the world issue debt in the form of bonds. Some of these commonly include:The U.K.: GiltsGermany: BundsFrance: OATsJapan: JGBsItaly: BTPsCanada: Canada Bonds


Response: Free cash flow is an important financial metric because it represents the actual amount of cash at a company’s disposal. A company with consistently low or negative FCF might be forced into costly rounds of fundraising in an effort to remain solvent.If a company has enough FCF to maintain its current operations but not enough FCF to invest in growing its business, that company might eventually fall behind its competitors.For yield-oriented investors, FCF is also important for understanding the sustainability of a company’s dividend payments, as well as the likelihood of a company raising its dividends in the future.


Response: A zero cost margin refers to when each additional product made of a certain good approaches zero. This occurs when there is substantial technological or computational disruption occurs and the company is able to capture strong efficiencies in how raw materials or labor are used.


What Are the Basic Principles of Corporate Governance?

Response: The basic principles of corporate governance are accountability, transparency, fairness, responsibility, and risk management.


What Is a Good Maximum Loan-to-Value Ratio?

Response: A loan-to-value ratio measures how much of an asset is financed compared to the overall value of the asset. For example, if you take out a $400,000 mortgage to purchase a $500,000 home, the loan-to-value ratio would be 80%. What constitutes a good maximum loan-to-value ratio depends on the type of loan. Some homebuying programs allow buyers to put down as little as 3%, meaning the loan-to-value ratio would be 97%—but that can be risky for the borrower if the value of the home decreases due to market conditions or other factors.


How Do You Window Dress Financial Statements?

Response: Financial statements are an aggregation of the results of the accounting process for an accounting period. There are several ways to window dress these statements. Some examples are recording certain expenses differently or capitalizing expenses rather than accounting for them as expenses.


Response: There is always the possibility of hyperinflation when a country prints its own currency. However, most developed countries have experienced only moderate bouts of inflation. In fact, having some consistent, low level of inflation is seen as a positive driver of economic growth and investment, as it encourages people to put their money to work rather than have it sit idle and lose purchasing power over time.Having a relatively strong and stable currency is not only a mandate of most modern central banks, but a rapidly devalued currency is harmful to trade and obtaining financing.Moreover, it is unclear whether or not hyperinflation is caused by "runaway printing" of money. In fact, hyperinflation has occurred throughout history, even when money was based on precious metals; and all contemporary hyperinflation has begun with a fundamental breakdown in the real production economy and/or political instability in the country.


How Can You Increase Your Cross-Selling Effectiveness?

Response: There are several strategies you can employ to make cross-selling effective. Consider using an email drip campaign to periodically introduce complementary products and services. Wait until you have developed a relationship and have proven success with the customer. Make sure your products and services are aligned to the needs and goals of the customer. Offering something that serves no purpose is counterproductive and can detract from customer satisfaction.


Response: Shares can be underlying assets, if a derivative is structured around them. Shares are commonly used as the underlying asset for call and put options, which represent sophisticated bets on the future stock price. Shares can also be underlying for convertible debt, which can be converted to shares if certain conditions are met.


How Can You Stop a Levy on Your Bank Account?

Response: The simplest way to avoid a bank account levy is to repay the debt that prompted the levy in the first place. If an individual can prove that the levy was due to an error on the creditor's part, or that they were the victim of identity theft, account access is restored.


Response: Discretionary income is a subset of disposable income, or part of all the income left over after you pay taxes. From disposable income, deduct all necessities and obligations like rent or mortgage, utilities, loans, car payments, and food, etc.. Once you've paid all of those items, whatever is left to save, spend, or invest is your discretionary income.


Response: Under the kanban method, companies must be continually improving, providing feedback loops to workers, and striving to be efficient with resources. Kanban requires companies to visually depict processes, assign tasks to swim lanes, and ensure individuals are communicating changes across the entire process or project.


Response: While IRAs don’t allow for loans like many 401(k) plans do, you can borrow from your IRA without taxes and penalties by applying the 60-day rollover rule. It allows you to withdraw assets from your IRA if you repay the full amount within 60 days, which essentially amounts to an interest-free, short-term loan.


Why Is the Price-to-Book Ratio Important?

Response: The price-to-book ratio is important because it can help investors understand whether a company's market price seems reasonable compared to its balance sheet. For example, if a company shows a high price-to-book ratio, investors might check to see whether that valuation is justified given other measures, such as its historical return on assets or growth in earnings per share (EPS).


Response: Capital expenditures are not directly tax-deductible. However, they can indirectly reduce a company’s taxes through the depreciation they generate. For example, if a company purchases a $1 million piece of equipment with a useful life of 10 years, it could include $100,000 of depreciation expense each year for 10 years. This depreciation would reduce the company’s pre-tax income by $100,000 annually, thereby reducing its income taxes.


Do I still need to pay tax on my bonus shares?

Response: No, and yes. Investors aren’t taxed on bonus shares when a company issues them; however, they must still pay capital gains tax if selling them for a net profit. Before filing a tax return, investors should inform their accountant if they have received bonus shares to ensure that they are managed correctly from a taxation standpoint.


Response: Foreign exchange can be complicated because it requires a good working knowledge of how currency markets work. Experience and skills are also key as they can help traders navigate some of the intricacies of this market and avoid major losses. Investors need to understand currency pairs, risks involved, and how to balance the risks in the market with the potential for rewards.


When Was the National Association of Realtors Started?

Response: The NAR was founded as the National Association of Real Estate Exchanges in 1908. At the time, it had 120 members, 19 boards, and a single state association.


Why Is Black Friday Important to Economists?

Response: Some economists consider Black Friday to be a good gauge of consumer confidence and consumers' likely discretionary spending going forward.


What Is the Difference Between Startup and Upstart?

Response: A startup can be seen as an entrepreneurial venture or company in the initial stages of business and funded by venture capital, angel investors, crowdfunding, loans, or even family and friends. The word "upstart", in this context, can have a close meaning, referring to a new company that is starting to run without significant external funding. The word upstart, however, comes with a negative connotation: it implies that the business is attempting to gain recognition or success without the proper experience and lacking credibility. The word startup, on the other hand, can be associated with innovation and potential for growth.


Response: Which ones are the main applications depends on the business and the industry it operates in. Most companies can benefit from supply chain management, logistics, and financial applications to help them streamline their operations and expenses.


Response: Taxpayers receive Form 1099-INT because they earned more than $10 of interest from the savings in their bank account. Lending institutions are required to issue Form 1099-INT to account holders who earn this threshold. There are many other situations why a taxpayer may have received Form 1099-INT, all of which relate to interest paid to the taxpayer.


What Are the Types of Earnings Management?

Response: Several techniques are used to manage earnings. Examples include lowering capitalization limits, changing from the last-in first-out method of valuing inventory to the first-in first-out method, cutting nonmandatory expenses for short periods, or attributing regular business expenses to a one-off, nonrecurring event.


Is the Margin of Safety the Same as the Degree of Operating Leverage?

Response: The margin of safety is the difference between actual sales and break-even sales, while the degree of operating leverage (DOL) shows how a company's operating income changes after a percentage change in its sales.


What Are the Downsides of Representative Sampling?

Response: Like other statistical tools, representative sampling can sometimes produce biased or inaccurate results. Moreover, the time and cost of creating a representative sample may be prohibitive, especially if the population is spread out over a wide geographical area. There may also be self-selection bias, if some members of the sample fail to respond to the researchers' attempts to make contact.


Why do companies separate out non-operating expenses?

Response: When looking at how a company generates profits, understanding its profits from core operations, net of direct operating expenses, is critical. Costs unrelated to these operations impact the bottom line, but they may not indicate how well a company is running.


Response: There is no ideal equity multiplier. It will vary by the sector or industry a company operates within. In general, equity multipliers at or below the industry average are considered better.


What Are the 4 Elements of Organizational Behavior?

Response: The four elements of organizational behavior are people, structure, technology, and the external environment. By understanding how these elements interact with one another, improvements can be made. While some factors are more easily controlled by the organization—such as its structure or people hired—it still must be able to respond to external factors and changes in the economic environment.


Response: Yes, federal law requires that workers and employers contribute to the OASDI fund through Social Security taxation on income of up to $160,200 for 2023 and $168,600 in 2024.


How Can Companies Improve Their Net Profit Margin?

Response: When a company's operating margin exceeds the average for its industry, it is said to have a competitive advantage, meaning it is more successful than other companies that have similar operations. While the average margin for different industries varies widely, businesses can gain a competitive advantage in general by increasing sales or reducing expenses—or both.Boosting sales, however, often involves spending more money to do so, which equals greater costs. Cutting too many costs can also lead to undesirable outcomes, including losing skilled workers, shifting to inferior materials, or other losses in quality. Cutting advertising budgets may also harm sales.To reduce the cost of production without sacrificing quality, the best option for many businesses is expansion. Economies of scale refer to the idea that larger companies tend to be more profitable. A large business's increased level of production means that the cost of each item is reduced in several ways. For example, raw materials purchased in bulk are often discounted by wholesalers.


Response: There's no single best way to come up with a mission statement. In general, the mission statement writing process should start with considering what a business does for the customers, employees, and general public. It's often best to begin by collecting more content than needed, then later refining the mission statement into a single sentence.One method of brainstorming ideas of a mission statement is to think about personal experiences from the company. This could also include soliciting ideas or memories from employees. Instead of focusing directly on the narrow business element of your company, embrace the broader aspect. For example, Microsoft did not craft its mission statement around delivering Windows '98. Rather, it crafted its mission statement around the possibilities it presented through its product.


What Are the Benefits of Arc Elasticity of Demand?

Response: The formula for arc elasticity of demand measures elasticity between two selected points by using a midpoint between the two points. As a result, it is particularly useful when there is a substantial change in price.


Response: Friendly acquisitions are most common and occur when the target firm agrees to be acquired; its board of directors and shareholders approve of the acquisition, and these combinations often work for the mutual benefit of the acquiring and target companies.Unfriendly acquisitions, commonly known as hostile takeovers, occur when the target company does not consent to the acquisition.Hostile acquisitions don't have the same agreement from the target firm, and so the acquiring firm must actively purchase large stakes of the target company to gain a controlling interest, which forces the acquisition.


Response: Data mining relies on big data and advanced computing processes including machine learning and other forms of artificial intelligence (AI). The goal is to find patterns that can lead to inferences or predictions from large and unstructured data sets.


What Are Some Things You Can Do During the Grace Period?

Response: For student borrowers, the six-month grace period is often used to find a job, choose a repayment plan that fits their budget, or enroll in another higher education program. This allows borrowers to establish a career before loan payments begin.


Response: In addition to compound interest, investors can receive compounding returns by reinvesting dividends. This means taking the cash received from dividend payments to purchase additional shares in the company—which will, themselves, pay out dividends in the future.


What Did Investors Fear as a Result of the Smoot-Hawley Tariff Act?

Response: Investors feared that the Smoot-Hawley Tariff Act would cause prices to fall. Their fears became reality, prompting many to sell shares in record-breaking numbers.


Response: Noncurrent assets are a company's long-term investments for which the full value will not be realized within the accounting year. They are allocated over the number of years the asset is used. They appear on a company's balance sheet under "investment;" "property, plant, and equipment;" "intangible assets;" or "other assets."


Response: Marginal revenue only considers income received and does not reflect any marginal expenses required to manufacture or sell the goods. Therefore, marginal revenue is different from profit.


Response: Criticisms of buybacks include creating a perception that a business does not have other pathways for revenue growth. Furthermore, if a company purchases back its share and the economy takes a downturn, this would negatively impact its financial standing. Buybacks are also often criticized for artificially inflating the share price, which can be used to justify higher executive bonuses. Critics also argue that the 1% excise tax on buybacks will have negative consequences on the financial world.


What Are the Benefits of Transfer Pricing?

Response: Transfer prices will usually be equal to or lower than market prices which will result in cost savings for the entity buying the product or service. It increases transparency in intra-entity transactions. Finally, the desired product is readily available so supply chain issues can be mitigated.


Response: A triple bottom pattern is a bullish chart reversal pattern that suggests a breakout to the upside.


Who Can I Name to Have Power of Attorney?

Response: You can technically name anybody as your agent as long as it's done under your free will and you're mentally competent. It should be somebody trustworthy and capable, such as a spouse, close family member, or friend. You can also designate your lawyer to have a POA.


Response: Despite the name, most economists consider Okun's law closer to a "rule of thumb" than a hard and fast law of economics. There have also been many periods where the observed changes were larger or smaller than what Okun's law would predict. Nonetheless, the underlying relationship has largely held true, despite these variations.


Response: Fixed interest rates remain constant throughout the lifetime of the loan. This means that when you borrow from your lender, the interest rate doesn't rise or fall but remains the same until your debt is paid off. You do run the risk of losing out when interest rates start to drop but you won't be affected if rates start to rise. Having a fixed interest rate on your loan means you'll know exactly how much you'll pay each month, so there are no surprises. As such, you can plan and budget for your other expenses accordingly.


How Is My Debt-to-Income Ratio Calculated?

Response: Your debt-to-income ratio is calculated by dividing all your monthly debt payments by your gross monthly income. Your debt payments include your mortgage, any auto loan(s) and payments toward credit cards, personal loans, student loans, and home equity loans.


Response: There are various theories as to why it is called the "black" market. These include the association of the word black with shadows and darkness, with the markets that continued to sell slaves after abolition, and the association of the color black with anarchist groups.


Response: Fintech has been applied to many areas of finance. Here are just a few examples.Robo-advisors are apps or online platforms that optimally invest your money automatically, often for little cost, and are accessible to ordinary individuals.Investment apps like Robinhood make it easy to buy and sell stocks, exchange-traded funds (ETFs), and cryptocurrency from your mobile device, often with little or no commission.Payment apps like PayPal, Venmo, Block (Square), Zelle, and Cash App make it easy to pay individuals or businesses online and in an instant.Personal finance apps such as Mint, YNAB, and Quicken Simplifi let you see all of your finances in one place, set budgets, pay bills, and so on.Peer-to-peer (P2P) lending platforms like Prosper Marketplace, LendingClub, and Upstart allow individuals and small business owners to receive loans from an array of individuals who contribute microloans directly to them.Crypto apps, including wallets, exchanges, and payment applications, allow you to hold and transact in cryptocurrencies and digital tokens like Bitcoin and non-fungible tokens (NFTs).Insurtech is the application of technology specifically to the insurance space. One example would be the use of devices that monitor your driving in order to adjust auto insurance rates.


Response: You don't necessarily need a digital wallet. However, they offer a convenient way to pay for your purchases because you don't have to carry credit and debit cards around; that information is instead stored in the cloud. This also increases card security—you can't lose your cards if you don't carry them.


What Are Some Risks Multinational Corporations Face?

Response: Multinational corporations are exposed to risks related to the different countries and regions in which they operate. These can include regulatory or legal risks, political instability, crime and violence, cultural sensitivities, and fluctuations in currency exchange rates.


How does operating cash flow margin differ from operating margin?

Response: Operating cash flow margin includes non-cash charges like depreciation and amortization. This highlights a firm's ability to turn revenues into cash flows from operations,


How Do Investors Limit Their Risk Exposure?

Response: Risk is inherent in all investments, but investors who use asset allocation and diversification and choose multiple types of investments in varying sectors can help manage risk.


How Far Back Does the EDGAR Database Go?

Response: EDGAR documents are available as far back as 1995 or 1994. Paper filings from earlier dates may be available through the Freedom of Information Act.


Response: Income from municipal bonds is exempt from taxes. Distributions from health savings accounts (HSAs) are exempt if they are used for qualified medical expenses. Qualified distributions from Roth 401(k) plans and Roth IRAs are also tax-exempt.


When Should I Receive My IRS Schedule K-1?

Response: Schedule K-1 forms are notorious for arriving late. The IRS says they are due by March 15 (or the 15th day of the third month after the entity's tax year ends). Whether that means they need to be issued by then, or to actually be in taxpayers' hands by that date, seems open to interpretation. Most authorities agree you should receive one by March 15, or the closest business day to that, though.


Response: Total economic surplus is equal to the producer surplus plus the consumer surplus.


Response: Random walk theory is widely debated among financial economists and market practitioners. While some agree with its basic tenets, others have challenged its assumptions and have proposed alternative theories of how and why prices move. Some have pointed out instances where stock prices do not follow a random walk, such as during bubbles or flash crashes. In these cases, prices may be driven more by emotional factors than by randomness.


What Is the Purpose for Transfer Pricing?

Response: Transfer pricing acts to distribute earnings throughout an organization but is primarily used to skirt tax laws and reduce tax burdens by multinational companies.


Response: This depends on whether you are applying for different types of jobs. For example, if you are applying for an office manager job, you should tailor your resume to outline your leadership and organizational skills. But you might also be interested in applying for a retail position, so creating a second resume that instead highlights any retail experience that you have will put you in a better position to get that job.


What Is the Main Benefit of Tangible Assets?

Response: Tangible assets have inherent value because of their usefulness in life. For example, land has value because it can be used for buildings, parks, agriculture, schools, community centers, parking lots, or homes for animals.The same can’t be said about intangible assets. The value of a single share of stock is the ownership property it represents. Although you may receive a piece of paper that states the ownership, the asset can’t be used for anything beyond its vehicle as an investment.


What's the Difference Between Coupon Rate and YTM?

Response: The coupon rate is the annual income an investor can expect to receive while holding a particular bond. It is fixed when the bond is issued and is calculated by dividing the sum of the annual coupon payments by the par value. At the time it is purchased, a bond's yield to maturity (YTM) and its coupon rate are the same. The YTM is the percentage rate of return for a bond assuming that the investor holds the asset until its maturity date. It is the sum of all of its remaining coupon payments and will vary depending on its market value and how many payments remain to be made.


How Long Does a Default Stay on Your Credit Report?

Response: Defaults stay on your credit report for seven years. A default may be removed earlier if it can be proven that it was a mistake. Your credit score should improve after the default is removed.


Response: A trust is a complex legal and financial entity that should be established with the help of a qualified attorney. Costs increase depending on the complexity of the trust. The price to establish a revocable trust can range from less than $1,000 to $3,000; irrevocable trusts are more expensive—how much you'll pay depends on how complex it is and how much attorneys charge in your area.


Response: Investors may be best suited to use fundamental, technical, and quantitative analysis as one technique may not always be superior compared to other techniques. Based on the information available and objectives of the investors, it may be better to analyze the financial positioning, research the company's industry, or devise complex financial models.


What Are the Benefits and Drawbacks of Remaining a Private Company?

Response: Companies remain private for several reasons. This helps keep control of the company within the owner, founder, and/or family's hands. Doing business as a private company also means avoiding the high cost of going public, avoiding scrutiny from the public and the government, and avoiding the need to file paperwork with financial regulators.But, operating as a private company comes with certain disadvantages. Private companies cannot access capital markets to fund growth or pay their debts. Owners may find themselves financially liable during times of distress and may face conflicts if there are disagreements between multiple shareholders.


What Are Different Types of Unilateral Transfers?

Response: A nation providing humanitarian or military aid can constitute a unilateral transfer. On an individual level, a gift, a donation, or any other form of aid without expected reciprocation is also considered to be a unilateral transfer.


Response: Jean-Baptiste Say was a French classical liberal economist. Born in 1767, Say worked in the French government under Napoleon (who later let him go) and as a professor of political economy at various schools in France. Say was influenced by Adam Smith, who is considered the father of modern economics. He used his position to teach Smith's beliefs and theories in France. His own theories, including the Law of Markets, are commonly studied even today. Say's Theory of Markets states that society must generate income before people can purchase any goods and services. He was also a proponent of competition, free trade, and lifting restraints on business.


Response: Turnover ratio has a variety of meanings outside of the investing world.A turnover ratio in business is a measurement of the firm's efficiency.It is calculated by dividing annual income by annual liability. It can be applied to the cost of inventory or any other business cost.Unlike in investing, a high turnover ratio in business is almost always a good sign. It may show, for example, that the business is selling its stock out as quickly as it can get it in.


What Are the Dates for Q1, Q2, Q3, and Q4?

Response: If a company decides to have a fiscal year different than a calendar year, the dates for each quarter may be different. However, if a company decides to report financial information on the same dates as a standard calendar cycle, the dates are:Quarter 1: Jan. 1 through March 30Quarter 2: April 1 through June 30Quarter 3: July 1 through Sept. 30Quarter 4: Oct. 1 through Dec. 31


How Long Can a Waiver of the Jones Act Be Implemented?

Response: In 2020, Congress eliminated the federal government’s authority to issue long-term waivers, except in circumstances where a waiver is required to “address an immediate adverse effect on military operations.” Waivers that do not meet that standard must be reviewed on a case-by-case basis.


What If I Don't Know the Cost Basis for a Stock I Sold?

Response: The brokerage that you used to purchase the stock should have records of the sale, even if you didn't keep those records yourself. You should be able to find them through the brokerage website or by calling the company directly.


Response: Banks charge NSF fees for the cost and inconvenience of having to return declined checks. "For many, overdraft/NSF fees have emerged as the No. 1 generator of fee income and is one of the bank’s most profitable sources of revenue," a Woodstock Institute report noted, quoting American Banker.


What Happens When You File a Complaint With the FTC?

Response: Once a complaint is submitted, the FTC shares it with more than 3,000 law enforcers. The FTC gathers information from submitted complaints to create reports, which are used to investigate fraud, unfair business practices, and scams.


Response: The Volcker Rule’s origins date back to 2009, when economist and former Federal Reserve (Fed) Chair Paul Volcker proposed a piece of regulation in response to the ongoing financial crisis (and after the nation’s largest banks accumulated large losses from their proprietary trading arms). The aim was to protect bank customers by preventing banks from making certain types of speculative investments that contributed to the crisis.Essentially, it prohibits banks from using their own accounts (customer funds) for short-term proprietary trading of securities, derivatives, and commodity futures, as well as options on any of these instruments. Volcker ultimately hoped to reestablish the divide between commercial banking and investment banking—a division that once existed but was legally dissolved by a partial repeal of the Glass-Steagall Act in 1999.


Response: Depreciation is an accounting method that is used to allocate the cost of a particular item over its useful lifetime. For example, a piece of office equipment that is expected to last for five years would lose 20% of its value every year until it has been fully depreciated. Depreciation is often taken into account in estimating the lifetime cost of an item.


How Does Ginnie Mae Help Make Mortgages More Affordable?

Response: When mortgages are guaranteed by Ginnie Mae, lenders obtain a better price for their mortgage loans in the secondary mortgage market and can use the proceeds to fund new mortgage loans.


What Would Happen If We Returned to the Gold Standard?

Response: Some economists argue that if we returned to the gold standard, prices would actually destabilize, leading to episodes of severe deflation and inflation. Moreover, in the event of a financial crisis, the government would have little flexibility to either avert or limit the potential damage.


Response: The term First World collectively means the highly industrialized nations with capitalist economies. Although the term is largely outdated, the list of First World nations today would include Japan as well as the nations of North America and Western Europe. It might arguably also include some Eastern European, South American, and Asian nations.


How Do You Calculate Exposure at Default?

Response: There are two main approaches to calculating exposure at default: the foundation approach and the advanced approach.The foundation approach is guided by regulators and is calculated by considering the asset, forward valuation, and commitments details. The foundation approach does not consider the value of any guarantees, collateral, or security.The advanced approach lets banks determine how EAD is calculated based on each individual exposure. These types of calculations may vary across loan types or borrower characteristics, as the lender is able to assess value as it sees fit.


Response: Rule 105b-1 lets company insiders sell their company's stock, provided they set up a predetermined plan and certify that they do not have access to material nonpublic information about the company or its securities.


How Do You Calculate Your COLA Increase for 2023?

Response: Take your monthly payment and multiply it by 8.7% to calculate your COLA increase for 2023. Then add this number to the amount you were receiving in 2022. This will show you the new amount you'll receive in 2023. You can also multiply the amount you received in 2022 by 1 + 8.7%, or 1.087. For 2024, multiply the 2023 numbers by 3.2%.


Response: Volatility is a statistical measure of the dispersion of data around its mean over a certain period of time. It's calculated as the standard deviation multiplied by the square root of the number of periods of time, T. In finance, it represents this dispersion of market prices, on an annualized basis.


Response: There is no single best form of payment, as each typically has its own advantages and disadvantages. More traditional forms for payment like cash don't need technology and are often universally accepted. More modern forms of payment have less risk of theft and may be accompanied by payment rewards.


How Does Production Costs Differ From Manufacturing Costs?

Response: Production cost refers to all of the expenses associated with a company conducting its business while manufacturing cost represents only the expenses necessary to make the product. Whereas production costs include both direct and indirect costs of operating a business, manufacturing costs reflect only direct costs.


Response: The phrase Third World was used to characterize nations that existed outside the economic and political ties that bind the industrialized countries around the world. Many are former colonies of European nations.The term Third World is today considered pejorative. A nation might now be considered developing or frontier. A developing nation is intent on improving the infrastructure, education system, health system, and trade ties that are necessary to improve living standards. A frontier nation might be just beginning that process.There also are the nations that the United Nations terms the "least developed." Formerly termed the Fourth World nations, they remain isolated from the rest of the world's economic systems, technology, and politics.


Will my bank notify me if a check bounces?

Response: Banks aren’t required to notify an account holder when a check they signed bounces due to non-sufficient funds. However, some banks may offer options for customers to enroll in/sign up for in order to be notified of overdrafts.


What Is Considered to Be a Good PEG Ratio?

Response: In general, a good PEG ratio has a value lower than 1.0. PEG ratios greater than 1.0 are generally considered unfavorable, suggesting a stock is overvalued. Meanwhile, PEG ratios lower than 1.0 are considered better, indicating a stock is relatively undervalued.


Response: Overhead refers to the costs and expenses associated with production, but which are not directly related to that production itself. For instance, paying utilities, rent, administrator salaries, supplies, raw materials, etc.


Response: Quantitative easing is a type of monetary policy in which a nation’s central bank tries to increase the liquidity in its financial system, typically by purchasing long-term government bonds from that nation’s largest banks and stimulating economic growth by encouraging banks to lend or invest more freely.


Response: A dependent is an individual that relies on another person for support, most often financial support. A dependent can be a child, a relative, or any other individual who cannot take care of themselves and relies on another person.


Response: You determine your tax liability by subtracting your standard deduction from your taxable income and referring to the appropriate IRS tax brackets.


What Is Included in an ARPU Calculation?

Response: At its core, ARPU is simply total revenue divided by the total number of users. The question is what to include in revenue. The number typically will include:First-time buyers or subscribers who pay an upfront feeRecurring revenue such as monthly paymentsUpsells, through purchases of premium productsCross-sells, or purchases of products from others in revenue-sharing dealsThis works for some companies such as Comcast, which makes its money through basic subscriptions, premium subscriptions, and streaming purchases.Many media companies, however, have very different revenue streams. The bulk of their revenue is derived from advertising. They may have insignificant or no basic subscription fees, though they may make money from premium levels of service or revenue-sharing deals. All of these would be included in their ARPU figures.


How Do You Calculate Comparative Advantage?

Response: Comparative advantage is usually measured in opportunity costs, or the value of the goods that could be produced with the same resources. This is then compared with the opportunity costs of another economic actor to produce the same goods.For example, if Factory A can make 100 pairs of shoes with the same resources it takes to make 500 belts, then each pair of shoes has an opportunity cost of five belts. If competitor factory B, can make three belts with the resources it takes to make one pair of shoes, then factory A has a comparative advantage in making belts, and factory B has a comparative advantage in making shoes.


What Is the Difference Between an Accountant and a CPA?

Response: A certified public accountant (CPA) is an accountant who is licensed by the American Institute of Certified Public Accountants (AICPA). The accountant has passed a four-part examination prepared by the AICPA. Prerequisites for taking the exam include a bachelor's degree in a related field and work experience in the field.


Is TSA PreCheck a Security Vulnerability?

Response: Critics have argued that the vetting process is flawed and that those with bad intent can falsify statements made during in-person interviews. Still, there have been no known security incidents related to PreCheck since its inception in 2013.


What Do I Need to Apply to Saïd Business School?

Response: Oxford Saïd requires prospective students to apply online. This includes scanning and uploading any supporting documents, including a written statement and two referral letters. Applicants are required to write the GMAT or GRE exam for their desired program and must have a minimum grade point average. For instance, Oxford MBA applicants must have a minimum GPA of 3.5/4.0. Prospective students for this program must have at least two years of work experience. Shortlisted applicants will be invited for an interview.


What Does 'Exclusive' Mean on a Real Estate Listing?

Response: The word exclusive indicates that the listing for the property is being handled by a single agent. No other agent can show the property or negotiate a sale.If it is an open listing, any agent can show the property and negotiate a deal.


Can a Lottery Winner Use an Annuity Table?

Response: A lottery winner could use an annuity table to determine whether it makes more financial sense to take his lottery winnings as a lump-sum payment today or as a series of payments over many years. However, Lottery winnings are a rare form of an annuity. More commonly, annuities are a type of investment used to provide individuals with a steady income in retirement.


Response: In a sense, yes. Composting can be seen as a form of bioremediation known as biodegradation that converts food waste into potable soil. This reduces the burden on landfills.


Response: Form W-8BEN is used by foreign individuals who receive income from sources in the U.S. Only non-U.S. persons file Form W-8BEN, not U.S. persons.


What Is the Gift and Estate Tax Exemption for 2023 and 2024?

Response: For 2023, the exemption is $12.92 million or $25.84 million if you're married and filing jointly. For 2024, the exemptions are $13.61 million and $27.22 million, respectively.


Response: TIPS first appeared in 1997. The official reason for their appearance is that there was strong demand from the investing public for inflation-linked government securities. However, some economists have been puzzled by the government’s continued issuance of TIPS since they amount to a more expensive way to borrow than traditional Treasuries.


What Are the Characteristics of an N.V.?

Response: All corporations that fall under the N.V. category are legal entities that must be registered with authorities, including those responsible for taxation. This kind of company issues shares to shareholders for the purpose of raising capital. Shareholders are able to remain anonymous and have the power to make decisions about the company.


Do Vertical Mergers Encourage Innovation?

Response: Vertical mergers can have both positive and negative effects on innovation. On one hand, integrating different stages of the value chain may foster collaboration and information sharing, potentially leading to improved product development and innovation. On the other hand, vertical mergers can reduce the incentive for companies to innovate if they gain significant market power and face less competitive pressure.


Response: To calculate ROE, analysts simply divide the company’s net income by its average shareholders’ equity. Because shareholders’ equity is equal to assets minus liabilities, ROE is essentially a measure of the return generated on the net assets of the company. Since the equity figure can fluctuate during the accounting period in question, an average shareholders’ equity is used.


What Are Some Illiquid Assets or Securities?

Response: Securities that are traded over the counter (OTC), such as certain complex derivatives, are often quite illiquid. For individuals, a home, a time-share, or a car are all somewhat illiquid in that it may take several weeks to months to find a buyer, and several more weeks to finalize the transaction and receive payment. Moreover, broker fees tend to be quite large (e.g., 5% to 7% on average for a real estate agent).


How Can You Tell If a Regression Is Homoskedastic?

Response: You can tell if a regression is homoskedastic by looking at the ratio between the largest variance and the smallest variance. If the ratio is 1.5 or smaller, then the regression is homoskedastic.


What Is the Difference Between Public Choice Theory and Social Choice Theory?

Response: Public choice theory is closely related to social choice theory. Both of these schools of thought are classified under the study of public economics. However, the social choice theory is a mathematical approach to the combined variables of individual interests, included in public choice theory, and how those interests affect voter behavior.


Is Earnings Before Tax (EBT) the Same as Income Before Tax?

Response: Yes. Income before tax or pretax income means the same thing as earnings before tax and these terms can be used interchangeably.


How Do You Calculate Hundredweight (CWT)?

Response: In North America, you simply divide the weight in pounds by one hundred. So something that is one ton (2,000 lbs) would be 20 CWT.


What Is the Largest Noninterest Expense for a Bank?

Response: It might vary by bank or institution, but personnel costs generally make up the most significant portion of noninterest expenses. For instance, Wells Fargo's personnel costs for 2021 were 45% of its revenues—$35.5 billion in noninterest expenses out of $78.5 billion in revenues.


What is the difference between an ordinary loss and a capital loss?

Response: A capital loss occurs when a capital asset is sold for less than what it cost. For example, if equipment that cost $10,000 is sold for $8,000, a $2,000 capital loss is incurred. An ordinary loss occurs when business expenses exceed business income, when non-capital assets are sold, or for certain non-capital transactions.


Can You Deduct Imputed Interest on Your Taxes?

Response: In most cases, imputed interest is not tax-deductible. This means that if you are required to pay taxes on the imputed interest on a loan, you cannot claim a deduction for that interest on your tax return. However, there are some exceptions to this rule. For example, if you use the loan proceeds to buy a primary residence or to fund a business or investment, you may be able to claim a deduction for the imputed interest on your taxes. Additionally, if you are a qualified charitable organization, a political organization, or a nonprofit organization, you may be exempt from the rules on imputed interest and may be able to claim a deduction for the interest you pay on your loans. It's always best to consult with a tax professional if you have questions about whether you can claim a deduction for imputed interest on your taxes.


Is a High Price to Free Cash Flow Ratio Good?

Response: A high ratio—one that is higher than is typical for the industry it operates in—may indicate a company's stock is overvalued.


Response: If an investor receives a margin call but is unable to come up with the funds to satisfy it, the broker may be forced to sell the traders holding until the value of the margin call has been satisfied.


What Are the 3 Types of Enterprise Risk?

Response: ERM often summaries the risks a company faces into operational, financial, and strategic risks. Operational risks impact day-to-day operations, while strategic risks impact long-term plans. Financial risks impact the general financial standing and health of a company.


How Often Should Individuals Reconcile Their Bank Statements?

Response: It's a good idea to reconcile your checking account statement (or at least give it a careful look) when you receive it each month. One reason is that your liability for fraudulent transactions can depend on how promptly you report them to your bank.The rules vary depending on whether the thief used just your account number or your physical ATM or debit card. In the first instance, you aren't responsible for any transactions you didn’t authorize as long as you report them within 60 calendar days after your statement was sent to you.If your ATM or debt card was involved in a fraudulent transaction, your liability is limited to $50 if you notify the bank within two business days of noticing your card is missing, but rises to $500 after two days and up to 60 calendar days. After 60 days, the Federal Trade Commission (FTC) notes, you'll be liable for "All the money taken from your ATM/debit card account, and possibly more—for example, money in accounts linked to your debit account."


Response: Articles of association define a company's purpose as a business, key information such as the name of the business, how the business is organized, and how shares are structured. It is an agreement among members of the organization that defines how business will be conducted.


How Do You Tell If a House Is a Good Price?

Response: To determine if a house is a good price, you can check the sale prices of recently sold properties in the neighborhood, compare the price with other properties for sale in the market, speak with a real estate agent, and consider the appreciation value.


What GPA Do You Need for UNC Kenan-Flagler MBA?

Response: There is no GPA requirement, but you must be able to compete with other applicants academically and meet other requirements.


Response: Fixed assets can include buildings, computer equipment, software, furniture, land, machinery, and vehicles. For example, if a company sells produce, the delivery trucks it owns and uses are fixed assets.


What Are the Main Components of a Risk Analysis?

Response: Risk analysis is sometimes broken into three components. First, risk assessment is the process of identifying what risks are present. Second, risk management is the procedures in place to minimize the damage done by risk. Third, risk communication is the company-wide approach to acknowledging and addressing risk. These three main components work in tandem to identify, mitigate, and communicate risk.


How Has the Prime Rate Changed Over Time?

Response: Prime rates fluctuate over time depending on the movement of the federal funds rate, which, in turn, reflects the state of the economy. The most recent prime rate history has been:12/2023: 8.50%11/2023: 8.50%10/2023: 8.50%09/2023: 8.50%08/2023: 8.50%07/27/2023: 8.50%05/04/2023: 8.25%03/23/2023: 8.00%02/02/2023: 7.75%12/14/2022: 7.50%11/03/2022: 7.00%9/22/2022: 6.25%7/28/2022: 5.50%6/16/2022: 4.75%5/5/2022: 4.00%3/17/2022: 3.50%3/16/2020: 3.25%


Response: High open interest usually indicates higher liquidity for a contract. This generally means there will be less difference between how much a trader wants for an option and how much another will pay. This can make it easier to buy and sell. If open interest is increasing and becoming higher, this signals that the market trends around that option are likely to continue.


Response: A LOI can provide important protection for one party of a contract if the other party fails to fulfill its obligations. In effect, the LOI assures that one or more parties in the contract will be held harmless. That is, they are not left on the hook for any negative financial consequences that the other party has caused.


Who Has More Rights, Landlord or Tenant?

Response: That depends on your local laws and how tenant-friendly or landlord-friendly they are. In some states, landlords have very few restrictions on entering property, selling property, evicting tenants, and so on. In other states, tenants have more rights and, for example, must grant permission before a landlord can enter a property and must be given certain periods of notice before a landlord can sell the property. In addition to local statutes, each judiciary has purview to decide which cases to hear and when, which puts some statutes in effect regardless of laws on the books.


Response: Whether or not a higher YTM is positive depends on specific circumstances. A higher YTM might indicate a bargain opportunity is available since the bond in question is available for less than its par value. However, investors must determine whether or not this discount is justified by fundamentals such as the creditworthiness of the company issuing the bond, or the interest rates presented by alternative investments.


What are the characteristics of smart money?

Response: Smart-money investors are often highly analytical and research-driven, using a variety of tools and resources to analyze the financial markets and identify investment opportunities. They often have a long-term investment horizon and focus on building portfolios that would generate consistent returns over time. Also, smart-money investors often have a disciplined approach to investing, with a clear investment criteria and a process for evaluating investment opportunities.


Response: Julian Robertson passed away on Aug. 23, 2022 at the age of 90, at his home in New York. Following his retirement Robertson spent much of his time as an active philanthropist, who donated over $1 billion to charitable funds.


Response: The money factor is the interest assessment on a lease. For this reason, a lower money factor is more favorable to a borrower as it signifies a lower financing charge. A good money factor will largely depend on borrower credit and prevailing market conditions, but a fairly good money factor of 25 (0.0025) and below translates to an imposed 6% APR.


How Does the West Coast Location Benefit USC's Marshall School of Business?

Response: The Marshall School of Business is known for its innovative programs and approach to business education. Its location in Southern California supports its entrepreneurship courses and MBA degrees that focus on Silicon Valley and cinematic arts.


Response: To calculate your net worth, you subtract your total liabilities from your total assets. Total assets will include your investments, savings, cash deposits, and any equity that you have in a home, car, or other similar assets. Total liabilities would include any debt, such as student loans and credit card debt.


Response: Once your forbearance period ends, you owe the amount of money that you missed. There are different options that you can choose from. Reinstatement means that you will owe the entire amount all at once. Repayment allows you to bring your mortgage up to date over time, usually 12 months. This is a repayment plan that you have agreed to with your mortgage servicer.


Do zoning regulations contribute to the housing crisis?

Response: Low-density residential zoning regulations have contributed to the housing crisis in areas with limited opportunities for expansion. Formerly small cities that have exploded in population, like Palo Alto, Calif., are full of areas zoned for low density. If they stay low density, then their housing crisis will continue to worsen. However, locals in these low-density areas usually strongly oppose any proposals to build more dense neighborhoods.


Response: Technical analysis uses statistical trends gathered from market activity, such as moving averages (MA). Essentially, technical analysis assumes that a security’s price already reflects all publicly available information and instead focuses on the statistical analysis of price movements. Technical analysis attempts to understand the market sentiment behind price trends by looking for patterns and trends rather than analyzing a security’s fundamental attributes.


Where Do We Find Data on Our Monetary Aggregates?

Response: The Fed releases the Money Stock Measures – H.6 Release on the fourth Tuesday of every month. It shows the latest and past figures for the monetary base, M1, and M2.


Response: Gold has long been considered a good investment to hedge against inflation as well as a store of value; however, data has shown that both stocks and bonds have outperformed gold in the long term, on average. Depending on the specific period, however, gold can outperform stocks and bonds.


What Should I Do If My Demand Draft Is Lost or Stolen?

Response: If a demand draft is lost or stolen, it is crucial to take immediate action. Contact the issuing bank and provide them with all relevant details. The bank will guide you through the necessary steps to report the loss or theft. This typically involves submitting a written request, providing any supporting documents, and cooperating with the bank's investigation process to resolve the issue.


Can a Merchant Give You a Discount if You Pay in Cash?

Response: Yes, as an alternative to charging more for using a debit or credit card, merchants can give customers a discount for paying in cash. This practice is legal in all 50 states of the U.S.


Response: Companies will almost always aspire to have a high inventory turnover. After all, high inventory turnover reduces the amount of capital that they have tied up in their inventory. It also helps increase profitability by increasing revenue relative to fixed costs such as store leases, as well as the cost of labor. In some cases, however, high inventory turnover can be a sign of inadequate inventory that is costing the company sales.


Response: If you are purchasing a home or other type of residential property, you will usually use a general warranty deed for your transaction with your mortgage lender.