How Does Ordinary Annuity Differ From Annuity Due?

Response: An ordinary annuity is a series of equal payments made at the end of consecutive periods over a fixed length of time. An example of an ordinary annuity includes loans, such as mortgages. The payment for an annuity due is made at the beginning of each period. A common example of an annuity due payment is rent. This variance in when the payments are made results in different present and future value calculations.


What's the Difference Between Covered and Uncovered IRP?

Response: The IRP is said to be covered when the no-arbitrage condition could be satisfied through the use of forward contracts in an attempt to hedge against foreign exchange risk. Conversely, the IRP is uncovered when the no-arbitrage condition could be satisfied without the use of forward contracts to hedge against foreign exchange risk.


How Do You Calculate the Iranian Rial Exchange Rate?

Response: The best way to calculate the Iranian rial exchange rate is to use a currency converter, such as the one found on XE.com. Depending on the currency exchange rate you are interested in finding, you can choose that currency in conjunction with the rial and get the exchange rate.


Response: OTC Link LLC is owned by OTC Markets Group Inc., which operates OTC Link ATS, an Alternative Trading System (ATS) and electronic inter-dealer quotation system that displays quotes from broker-dealers for many over-the-counter (OTC) securities. Broker-dealers who buy and sell OTC securities can use OTC Link ATS to publish their bid and ask quotation prices.


Response: The most commonly quoted figure for qualification as a high-net-worth individual is at least $1 million in liquid financial assets, excluding personal assets such as a primary residence. Investors with less than $1 million but more than $100,000 liquid assets are considered sub-HNWIs. Very-high-net-worth individuals have investable assets of at least $5 million, while ultra-high-net-worth individuals have at least $30 million.


Response: Working offshore means that you have a job outside your home country. You may get paid in the local currency and are usually subject to local labor laws. For instance, you are considered to be working offshore if your company opens an office in another country and moves you to that location.


Response: If your W-2 is available online, you may access it as many times as you need. If you lose your password or credentials for accessing the online site, you can often request automated password recovery. If you still need help accessing your information online, or if you need to request a new paper copy, you should contact your payroll or HR supervisor.


What Can Spot and Futures Crude Oil Prices Tell an Investor?

Response: The basis, or differences, between oil futures contracts and the spot (cash) market can be indicative of the near-term expectations of oil supply and demand. When futures prices are trading higher than the spot (known as contango), it suggests that traders are willing to pay a premium for oil to be delivered at a future date and that expectations are bullish. When futures are trading below the spot (known as backwardation), it can be a bearish signal.


What Happens at the End of a Fiscal Year?

Response: At the end of a fiscal year, a company reviews its entire annual bookkeeping. It reconciles transactions, makes adjustments, verifies financial data, and calculates all of the annual financial information, such as income, expenses, revenue, investments, and more.


What Is the Difference Between Life Insurance and AD&D Insurance?

Response: Accidental death and dismemberment (AD&D) coverage only pays a benefit if death results from a covered accident or upon the loss (or loss of use) of a limb. In contrast, coverage is broader with life insurance. Life insurance policies pay benefits upon the death of the insured, despite how the death occurred. (Note: Exceptions apply depending on policy terms.)


Response: Search online for real estate investment groups or connect with investors via social networking sites and interest groups, such as LinkedIn or the National Real Estate Investors Association. As a beginner, it might be beneficial to join a local real estate group to become more closely connected with other investors and to stay informed on regional activities.


How Did Thomas Malthus Influence Charles Darwin?

Response: Darwin's theory of natural selection was influenced by Malthus' population theories. Darwin found that limited resources place competitive pressures on every species. Darwin's revelation was that a species adapted over time to improve its rate of survival.


How Do I Protect My Property From Eminent Domain?

Response: Unfortunately, there is not much you can do to protect your property from eminent domain. It is not always real estate that is seized, and it is not possible to anticipate the future needs of the public or the government. It may seem unfair, but property owners do not have many options to protect their property from seizure by the government.


How Do You Know That a Company Uses Off-Balance Sheet Financing?

Response: Companies are required to be transparent about their accounting practices. And demand for more transparency from accounting and financial regulators is increasing for companies to be more forthcoming in the way they account for their financial situations. This means they should include notes in all their financial reporting. Despite this, some companies may find other ways to dress up their balance sheets so it's important to look out for wording like partnerships, rental, or lease expenses.


Response: The bathtub curve is a visual representation of the typical failure rate of a product or group of products over time. The bathtub image maps out three distinct periods. The initial downward slope, also known as “infant mortality,” represents the timeframe when the product is first used and goes from a high failure occurrence to a low one. Next, the line levels out and becomes flat, depicting the useful life period when assets are expected to have a relatively constant failure risk. Then finally the slope moves upward, taking the form of a bathtub, as the product in question enters its wear-out period and degrades at an accelerated pace.


Response: What counts as a good job is subjective and depends on a myriad of personal and situational factors. That said, white-collar jobs tend to pay more than blue-collar jobs and come with more generous benefits.


Response: To calculate market capitalization, multiply the number of outstanding shares by the current stock price. Next, total all debt on the company's balance sheet. Finally, add the market capitalization to the total debt and subtract any cash and cash equivalents from the result.


What Do Salespeople Say Is Most Important to Making a Sale?

Response: Modern thinking in marketing is that every sale should start with understanding the individual customer and identifying a problem that the customer has that this product can solve. The ABC method suggests that consumers are interchangeable, and that a certain number of them can be bullied into a sale. The alternatives involve listening to the consumer.


Who First Identified the Bandwagon Effect?

Response: The term "bandwagon" stems from the 1848 U.S. presidential election. During Zachary Taylor's successful campaign, a popular performance clown invited Taylor to join his circus bandwagon. Taylor received a significant amount of renown, and people started claiming that his political opponents might also want to “jump on the bandwagon.”


Can a Trader Delay Meeting a Margin Call?

Response: A margin call must be satisfied immediately and without any delay. Although some brokers may give you two to five days to meet the margin call, the fine print of a standard margin account agreement will generally state that to satisfy an outstanding margin call, the broker has the right to liquidate any or all securities or other assets held in the margin account at its discretion and without prior notice to the trader. To prevent such forced liquidation, it is best to meet a margin call and rectify the margin deficiency promptly.


Is it possible to have a negative return?

Response: Yes, negative returns are indicative of a loss, while positive returns show a gain.


Is It Better to File Taxes as Married Filing Jointly?

Response: Most couples find that filing jointly makes sense financially. The tax code is written to benefit married couples and families, and this status is the one that maximizes those generous tax breaks.There are exceptions when filing separately saves you more. For example, if there's a big disparity in income and the lower-earning individual has substantial itemizable deductions, filing separately can save the couple money.When in doubt, try it both ways or see a tax adviser.


How Many Countries Are in the International Maritime Organization (IMO)?

Response: There are 175 member states of the IMO, as well as three associate members that are not considered states.


Response: No, some European countries have maintained their own currency and have not adopted the euro. These include the U.K., Switzerland, Sweden, Norway, Bulgaria, Croatia, Czech Republic, Denmark, Hungary, Poland, and Romania. Some non-EU jurisdictions such as Vatican City, Andorra, Monaco, and San Marino also have monetary agreements with the EU allowing them to issue their own euro currency under certain restrictions.


Response: You don't need to include your 1095-C with your 2021 tax return or send it to the IRS, but you may use information from the form to help complete your tax return.


What Is the Difference Between Cost of Sales and Cost of Goods Sold?

Response: While these terms are often used there's a subtle difference between the two. COGS specifically refers to the direct costs associated with producing goods or acquiring inventory that has been sold during a particular period, COS includes not only the direct costs of goods sold but also other costs directly related to generating revenue, such as direct labor and direct overhead. Essentially, COS encompasses a broader range of expenses than COGS, as it may include additional costs associated with delivering the product or service to the customer.


What Are the Benefits of a Zero Balance Account?

Response: A zero balance account automatically sweeps funds from a master account to pay obligations or sweeps unused funds into a master account. The account is intended to increase efficiency of how cash is used, limit risk and fraud, and streamline the banking process.


How Did TEFRA Provisions Impact the U.S. Healthcare System?

Response: TEFRA includes many changes to the Medicaid and Medicare reimbursement systems that were intended to save the government money.However, one of the most durable and significant provisions of TEFRA is known to this day as TEFRA Medicaid. This provision allows states to extend certain in-home Medicaid services to children with disabilities regardless of their family income.


Response: Sovereign default happens when a country cannot pay its debts. Unlike when an individual defaults, a country cannot be forced to pay its debts. But default can cause other economic problems. It may trigger a recession or cause the country's currency to lose value. A country that defaults may also struggle to borrow money in the future because it is seen as a bad economic risk.


Response: The DTC number is a number that helps facilitate transactions between financial institutions. The DTC number is typically associated with the clearing firm that is used by your IRA custodian. To confirm your custodian’s DTC number, please contact your current IRA custodian.


How Do You Use a Bank Identification Number?

Response: Consumers generally don't use BINs but it is important to know what they mean. The first digit is the major industry identifier while the remaining digits specify the issuing financial institution.When you make a purchase or transaction, the issuing institution receives a request for authorization. This request attempts to verify the legitimacy of the account and whether the funds are available. If everything checks out, the transaction is approved. If not, the institution declines it.


How Is Economic Order Quantity Calculated?

Response: Economic order quantity is an inventory management technique that helps make efficient inventory management decisions. It refers to the optimal amount of inventory a company should purchase in order to meet its demand while minimizing its holding and storage costs. One of the important limitations of the economic order quantity is that it assumes the demand for the company’s products is constant over time.


Response: The company’s ownership or board of directors must initiate the process, but generally, the decision must be approved by a vote of those holding either two-thirds of the company’s shares (U.S.) or three-fourths of them (U.K.).


How Did the Troubled Assets Relief Program Assist Banks That Were Too Big To Fail?

Response: The EESA established the Troubled Assets Relief Program (TARP) authorizing the Treasury secretary to "purchase, and to make and fund commitments to purchase, troubled assets from any financial institution, on such terms and conditions as are determined by the secretary." Proponents believed vital to minimize the economic damage created by the sub-prime mortgage meltdown.


Response: Unicorns are typically used to describe privately-held startup companies with market caps of over $1 billion, so Amazon is not considered a unicorn company, as it is public. When Amazon went public on May 15, 1997, it raised $54 million, which gave it a market cap of $438 million, which was still well below the key $1 billion mark.


What Are the Disadvantages of Self-Service BI?

Response: Drawbacks to self-service BI include a false sense of security in end-users, high licensing costs, a lack of data granularity, and sometimes too much accessibility.


Response: A disbursement fee is usually a vendor's charge to cover payments made by the vendor in the course of its work on behalf of a customer. For example, FedEx may pay duty and tax charges for a shipment on behalf of a customer, and then add a disbursement fee to its bill to the customer to cover the payments.


Response: Unearned income is income not earned from work. Examples include inheritance money, a financial prize, unemployment benefits, interest on a savings account, and stock dividends.


Response: The cost of an NDA can vary depending on the complexity of the agreement. The cost of creating one typically ranges from $175 to $1,500.


Response: Economic profit measures how a company is faring compared with its competition. It uses both explicit and implicit costs. A company can have a positive accounting profit while maintaining a zero economic profit.


What Is Foreign Exchange (FOREX) Trading?

Response: Foreign exchange trading is the process of buying one currency and selling another to make a profit from the trade.


How Do Investment Management Firms Make Money?

Response: Investment managers charge a fee for their services. The exact fee structure depends on the manager and the client's needs: most will charge a small percentage of the client's assets, a share of the annual gains, or an annual fee. Some managers may accept a flat fee for a one-time consult.


Response: Not precisely. A company can use, create, or modify any format that it wishes. But experience has shown that the most common format organizes information by individual account and assigns each account a code and description. What's important is to use the same format over time for the consistency of period-to-period and year-to-year comparisons.


Response: The Federal Reserve is the central bank of the United States and is managed by the Board of Governors of the Federal Reserve. The board is based in Washington D.C. and is made up of seven members who are nominated by the President of the United States and confirmed by the U.S. Senate.


What Is Being Done to Encourage the Use of Renewable Resources?

Response: Energy taxes place a surcharge on fossil fuels. The hope is that the prices of energy options produced by renewable resources will become more attractive and encourage consumer interest. Green mutual funds support eco-friendly and sustainable companies by investing in them and helping to promote environmental awareness.


Are Capital Markets the Same as Financial Markets?

Response: While there is a great deal of overlap at times, there are some fundamental distinctions between these two terms. Financial markets encompass a broad range of venues where people and organizations exchange assets, securities, and contracts with one another, and are often secondary markets. Capital markets, on the other hand, are used primarily to raise funding, usually for a firm, to be used in operations, or for growth.


What are the Four Key Steps Involved in Hypothesis Testing?

Response: Hypothesis testing begins with an analyst stating two hypotheses, with only one that can be right. The analyst then formulates an analysis plan, which outlines how the data will be evaluated. Next, they move to the testing phase and analyze the sample data. Finally, the analyst analyzes the results and either rejects the null hypothesis or states that the null hypothesis is plausible, given the data.


What Is the Meaning of Global Depositary Receipt?

Response: A global depositary receipt is a negotiable certificate issued by a bank. The certificate represents shares in a foreign company traded on a local stock exchange. GDRs give companies access to greater capital and investors the opportunity to invest in the equity of foreign companies.


Response: You would use a two-tailed test when you want to test your hypothesis in both directions.


What Is the Tangible Common Equity Ratio Used For?

Response: The tangible common equity ratio (TCE divided by tangible assets) can be used as a measure of leverage. High ratio values indicate less leverage and a larger amount of tangible equity compared to tangible assets.


What Are Well-Known Securities Fraud Cases Investigated by the FBI?

Response: Examples of cases of securities fraud are the Enron, Tyco, Adelphia, and WorldCom scandals.


Why Is the Law of Supply and Demand Important?

Response: The Law of Supply and Demand is essential because it helps investors, entrepreneurs, and economists understand and predict market conditions. For example, a company considering a price hike on a product will typically expect demand for it to decline as a result, and will attempt to estimate the price elasticity and substitution effect to determine whether to proceed regardless.


Response: The four main sectors of an economy are:Primary sector: Represents companies that are involved in extracting natural resources and agriculture.Secondary sector: Companies involved in manufacturing, construction, and processing producing goods that use the resources obtained from companies within the primary sector.Tertiary sector: Companies that provide services such as entertainment, financial, and retailers.Quaternary sector: Involves knowledge-based activities such as information technology, research, and development, as well as consulting services and education.


What Is Better, Term or Permanent Life Insurance?

Response: Both term and permanent life insurance can help you protect your loved ones financially. You should buy the one that offers premiums you can afford. Permanent life lasts longer and has a cash value component, but its premiums are usually much higher than term life insurance.


What Is the Downside of Preferred Stock?

Response: Though preferred stock often has greater rights and claims to dividends, this type of investment often does not appreciate in value as much as common stock. In addition, preferred stock holders have little to no say in the operations of the company as they often forego voting capabilities.


Response: Governments typically set an inflation target, which is approximately 2% a year in the U.S. An inflation target allows businesses and individuals to budget for the future. It provides an indicator for companies on how much to pay their employees and how much to charge for their goods and services. It indicates to individuals how much they can expect in wages as well as how much goods and services will cost.


What Does the Herfindahl-Hirschman Index (HHI) Mean?

Response: The Herfindahl-Hirschman Index (HHI) is a common measure of market concentration and is used to determine market competitiveness, often pre- and post-merger and acquisition (M&A) transactions. The closer a market is to a monopoly, the higher the market's concentration (and the lower its competition).


Who Benefits From a VAT and Who Doesn’t?

Response: Wealthier consumers could ultimately come out ahead if a VAT replaced the income tax. As with other flat taxes, a VAT’s impact would be felt less by the wealthy and more by the poor, who spend most of their income on necessities.In short, lower-income consumers would pay a much higher proportion of their earnings in taxes with a VAT system, according to critics such as the Tax Policy Center.


Who Qualifies for the Foreign Earned Income Exclusion?

Response: A U.S. citizen or U.S. resident alien who is physically present in another country for 330 days or more during 12 consecutive months, a U.S. citizen who is a legal resident of a foreign country for an uninterrupted period that includes an entire tax year, or a U.S. resident alien who is a citizen or national of a country with which the United States has an income tax treaty in effect who is a legal resident of a foreign country for an uninterrupted period that includes an entire tax year, qualify for the foreign earned income exclusion.


What Does a T-Test Explain and How Are They Used?

Response: A t-test is a statistical test that is used to compare the means of two groups. It is often used in hypothesis testing to determine whether a process or treatment has an effect on the population of interest, or whether two groups are different from one another.


How Is the System of Checks and Balances Used in International Organizations?

Response: Checks and balances are used by a wide range of global organizations that seek to check the power of different nations, organizations, and individuals within said organizations. Groups such as NATO, the UN, the World Trade Organization (WTO), the International Criminal Court (ICC), all employ checks and balances in their organizational structures.


Response: A multinational conglomerate is a company that owns other companies or businesses in at least one country other than its own—the one where it's headquartered. Though similar to a multinational corporation (MNC), it's not quite the same, as an MNC could simply be a firm with subsidiaries, operations, or other holdings in foreign nations, as opposed to separate companies.


Is It Necessary to Use Any Type of Broker At All?

Response: No law says that you must use some type of broker although flying solo is generally not a good idea if you're not very knowledgeable about the industry. Two types of plans allow you to invest directly on your own: direct stock plans (DSPs) and dividend reinvestment plans (DRIPs). Both involve dealing directly with the company you want to invest in.There's no guarantee that these plans won't also charge fees and DRIPs don't commonly provide for selling shares.


Response: New capital is raised via stocks and bonds that are issued and sold to investors in the primary capital market, while traders and investors subsequently buy and sell those securities among one another on the secondary capital market but where no new capital is received by the firm.


Response: It is not customary in the U.S. to address individuals who hold a JD as a "Doctor." In the late 1960s, the Canons of Professional Ethics issued a full ethics opinion regarding whether lawyers could ethically use the title "Doctor." The organization came down against this usage, with some exceptions. It is permissible for lawyers to use the title "Doctor" when dealing with countries where the use of "Doctor" by lawyers is standard practice. In addition, lawyers are allowed the use of the title in academia as long as the school of graduation considers the JD degree a doctorate degree.


Can I Avoid Paying the Net Investment Income Tax?

Response: There are ways to avoid qualifying for the NIIT. The key is keeping your modified adjusted gross income under the threshold.Talk to a tax professional or another financial professional to see what steps you can take to decrease your tax liability when it comes to your investments.


What Are the Two Main Purposes of the Securities Exchange Act?

Response: The SEA has two primary goals. It is intended to prevent fraud in the securities market and to create more transparency in companies' financial disclosures so that investors have the information they need to make informed decisions.


Response: Holding period means the time a security was held for. It begins when the investment is purchased and ends when it is sold.


Response: The North American Free Trade Agreement (NAFTA) is one example. By this agreement, Canada, Mexico, and the U.S. agreed to remove all trade restrictions between their countries to open up trade and increase the economic benefits for each.


Can I Deduct My Car if I Use It for My LLC?

Response: If you use a car entirely for business purposes, you can deduct the related expenses.If you have a car that you use for both business and personal trips, only the costs related to its business use are deductible. That means keeping receipts and a careful log of mileage and other costs associated with the vehicle.


Response: YTM calculations usually do not account for taxes that an investor pays on the bond. In this case, YTM is known as the gross redemption yield. YTM calculations also do not account for purchasing or selling costs. YTM makes assumptions about the future, and an investor may not be able to reinvest all coupons, the bond may not be held to maturity, and the bond issuer may default.


What Are the Most Valuable Skills in the Knowledge Economy?

Response: While higher education and technical training are obvious assets, communication and teamwork are also essential skills for a knowledge-based economy, according to the Organization for Economic Cooperation and Development. Since it is unlikely that any single knowledge worker can generate groundbreaking innovations alone, these interpersonal and workplace competencies are essential to surviving in a knowledge-based workplace.


Response: Tier 3 capital is tertiary capital banks use to support market risk in their trading activities. Tier 3 capital includes a greater variety of debt (short-term unsecured, subordinated debt) than tier 1 and tier 2 capital, but it's of lower quality. Tier 3 capital is being abolished under the Basel III accords.


What Was the Purpose of the Smoot-Hawley Tariff of 1930?

Response: The Smoot-Hawley Tariff Act of 1930 was enacted to protect U.S. farmers from foreign competition by increasing tariffs on certain foreign goods. It was also purposed to offer protections to other industries from foreign competitors.


What Are the Advantages of a Free Trade Area?

Response: The advantages include greater access to low-priced, high-quality goods, lower prices overall, greater efficiency and innovation in production, increased economic development and living standards, and overall economic growth.


What are the benefits of an uninsured CD?

Response: While an uninsured CD carries risk, the biggest benefit is that you can earn more money. Higher interest rates over time will bring in a much higher rate of return. If you are confident in the market, an uninsured CD could make sense for you.


Response: Understanding, measuring, and mitigating financial risk is critical for the long-term success of an organization. Financial risk may prevent a company from successfully accomplishing its finance-related objectives like paying loans on time, carrying a healthy amount of debt, or delivering goods on time. By understanding what causes financial risk and putting measures in place to prevent it, a company will likely experience stronger operating performance and yield better returns.


What Are Industries Within the Technology Sector?

Response: There are three main industries within the technology sector. These are software and services, semiconductors and semiconductor equipment, and technology hardware and equipment. Each of these areas can be further broken down into sub-industries.


Response: Strategic management is the process of setting goals, procedures, and objectives in order to make a company or organization more competitive. Typically, strategic management looks at effectively deploying staff and resources to achieve these goals. Often, strategic management includes strategy evaluation, internal organization analysis, and strategy execution throughout the company.


Is contingent liability an actual liability?

Response: Yes, when they are probable. Even though they are only estimates, due to their high probability, contingent liabilities classified as probable are considered real. This is why they need to be reported via accounting procedures, and why they are regarded as “real” liabilities.


Response: Individual HOAs have different levels of legal powers, depending on how they were designed. However, HOAs generally have the legal authority to create and enforce community policies, such as whether to allow smoking, pets, or rentals in the building. HOAs also decide on budgets for the building and have the authority to charge monthly or one-time fees to their members. If a member refuses to pay these fees or to comply with the community policies, HOAs can impose a range of penalties. In many cases, these penalties can include monetary fines, the restriction of community privileges, and even litigation.


What Is the Difference Between Accounting Policies and Principles?

Response: While an accounting principle is the standardized rule set forth by a governing body, an accounting policy is the method or guideline used by management to adhere to the rule and generate financial statements.In the United States, generally accepted accounting principles (GAAP) are the accounting standards accepted by the Securities and Exchange Commission (SEC). Certain accounting principles allow for management discretion, and that is where accounting policies come into play.


Can Tenants Negotiate a Triple Net Lease?

Response: With a triple-net lease, almost all responsibilities fall on the tenant. The tenant is responsible for paying rent, and all overhead costs associated with owning the property: taxes, insurance, operating expenses, utilities, etc. As a result, the base rental amount can become a key negotiating term. Because the tenant is taking on the risk of the landlord's overhead, they may be able to negotiate a more favorable base rental amount.


Can a Company Have a High Operating Income But Lose Money?

Response: While a good operating income is often indicative of profitability, there may be cases when a company earns money from operations but must spend more on interest and taxes. This could be due to a one-time charge, poor financial decisions made by the company, or an increasing interest rate environment that impacts outstanding debts. Alternatively, a company may earn a great deal of interest income, which would not show up as operating income.


Response: A swingline loan is a type of loan for business owners or individuals to access a large sum of credit for a brief period of time. They are often a sub-limit of a revolving line of credit.


Response: A marketable security is any type of stock, bond, or other security that can easily be bought or sold on a public exchange. For example, the shares of public companies can be traded on a stock exchange, and treasury bonds can be bought and sold on the bond market.In contrast, a non-marketable security is one that cannot be legally sold to the public. For example, shares in non-public companies can only be bought or sold in very limited circumstances.


How Does Social Responsibility Benefit Companies?

Response: In addition to potentially increasing the bottom line, companies that implement social responsibility programs can also boost their brand image. Social responsibility programs can also have a positive impact on morale among employees.


Response: Bad debt is a contra asset, which reduces a business's accounts receivable.


What Do a Company's Funds From Operations Tell You?

Response: Funds from operations measure how much cash a real estate investment trust generates. This cash is derived from a variety of sources, including regular business activities. FFO is the way that REITs measure their operating performance. Keep in mind that FFO doesn't include the gains a REIT makes on the sale of its property(s). That's because this doesn't count as an ongoing or recurring activity.


Response: Economic exposure is managed through two overarching strategies: operational strategies and currency risk-mitigation strategies. Operational strategies include diversification in production facilities and the markets the products are sold, flexibility in sourcing raw materials, and diversifying financing sources. Currency risk-mitigation strategies include matching currency flows, currency swaps, risk-sharing agreements, and back-to-back loans.


Response: A going concern is often good as it means a company is more likely than not to survive for the next year. When a company does not meet the going concern criteria, it means that a company may not have the resources needed to operate over the next 12 months.


What are the limitations of an annualized rate of return?

Response: Annualized rate of return can be a useful tool to understand your investment outlook, but it is not a guarantee. Market volatility and other outside forces can change an investment's annualized rate of return.


Response: Proponents of progressive taxation argue that progessive taxation is a fair to ensure that a tax system is fair, especially as it can help reduce inequality in wealth and income in a society. However, critics warn that there are limitations to progressive taxation, as well, including the risk of disincentivizing work or expansion, and of incentivizing wealthy taxpayers to seek out tax loopholes.


What If I Come into Possession of MNPI and I Am Not an Employee of the Company Involved?

Response: Anyone who comes into possession of MNPI is under an obligation not to act on that information, as it could still be construed as a form of insider trading, leading to prosecution of the person acting on it.


How Do Bullish Pennant Patterns Differ from Bearish Pennants?

Response: Bullish pennant patterns occur after an uptrend and indicate a potential continuation of the upward movement. Bearish pennant patterns occur after a downtrend and suggest a potential continuation of the downward movement.


What Are the Disadvantages of Demonetization?

Response: The chief disadvantage is the costs involved in printing and minting the new currency. Also, demonetization may not have the intended effect of reducing criminal activity as these entities might be savvy enough to hold assets in other forms other than physical currency. Finally, this process is risky as it can plunge the nation into utter chaos if not handled with the utmost of competence.


Response: A good portfolio will depend on your investment style, goals, risk tolerance, and time horizon. Generally speaking, a good degree of diversification is recommended regardless of the portfolio type in order to not hold all of your eggs in one basket.


Response: Syndicated loans allow borrowers to raise money from different lenders. These lenders form a group called a syndicate and provide varying amounts of capital based on how much risk they're willing to accept. Banks syndicate loans because it allows them to lessen the risk associated with lending to a borrower. That's because one bank (usually) doesn't take the full responsibility for 100% of the loan.


Response: Traditionally, most investors and traders had to pay fees to their brokers to execute trades and maintain their accounts. With the advent of Internet-based trading, online account management, and fierce competition among brokerage firms, today's fees on most stock and ETF trades have dropped to zero at several platforms.


Which Country Has the Lowest GDP Per Capita?

Response: Of the countries for which the IMF publishes data, Burundi, Sierra Leone, and Malawi have the lowest GDP per capita.


Response: Contrary to Friedrich Engels and Karl Marx, who both believed in necessary revolution, utopian socialists believed that capitalists could be encouraged to surrender the means of production peacefully to the people through moral persuasion alone.


How Does a Vostro Account Benefit Banks?

Response: Vostro accounts allow banks to expand their global reach, offer services in foreign currencies, reduce transaction costs, mitigate currency risks, and provide convenient access to local banking infrastructure and services in foreign markets.


Response: A FICO Score above 670 is better than average, while scores above 740 indicate that the borrower is extremely responsible with credit. A FICO Score above 800 is considered exceptional.


Response: Ponzi schemes are named after Charles Ponzi, a businessman who successfully persuaded tens of thousands of clients to invest their money in a nonexistent venture for a guaranteed high profit.Ponzi's earliest clients got their money, but it was paid out of money contributed by later investors. Ponzi made millions before his con was exposed.


When Should One Use Straight-Line Deprecation?

Response: Straight-line depreciation is the easiest method for calculating depreciation. It is most useful when an asset's value decreases steadily over time at around the same rate.


What Are the 4 Main Types of Economic Systems?

Response: The four main types of economic systems are a pure market economy, a pure command economy, a mixed economy, and a traditional economy.


Response: To calculate GNI, compensation paid to resident employees by foreign firms and income from overseas property owned by residents is added to GDP, while compensation paid by resident firms to overseas employees and income generated by foreign owners of domestic property is subtracted. Product and import taxes that are not already accounted for in GDP are also added to GNI, while subsidies are subtracted.


What Is a Right of Survivorship and Does It Affect a Tenancy-at-Will?

Response: Two or more tenants have equal rights to a property when they have rights of survivorship. They would automatically inherit another tenant's share in equal proportions if one of them were to die.This legal arrangement is most common with property deeds that convey ownership rather than leases. A tenancy-at-will agreement would be dissolved if only one tenant resided in the property and that tenant died. Whether a roommate could effectively remain in residence would most likely be decided on a case-by-case basis depending on the relationship between the landlord and tenant and the terms of the tenancy-at-will agreement.


Response: A double bottom is a reversal pattern that is used by followers of technical analysis to mark a major shift in the price of a security. More broadly, active traders also use chart patterns such as a double bottom, or V-shape, to mark major shifts in broad market indexes and changes in economic sentiment.


Response: If you are applying for a loan, your residual income is the amount of money you have to spend after all of your monthly obligations have been paid. This is also called discretionary income.If you are planning your long-term future, residual income takes on a different meaning. It is the amount of money you generate (or plan to generate in the future) from passive sources such as dividends and interest.


Response: Inside sales relies on an indoors salesforce to market and sell the company's products or services online or over the phone.Outside sales uses in-person techniques such as meeting clients face-to-face, knocking on doors, or setting up physical booths at conventions or conferences.


Response: A cover letter should start with a formal greeting, preferably addressed to the hiring manager. If you do not know who will be reading your cover letter, a generic "to whom it may concern" is an acceptable, albeit old-fashioned, way to address a cover letter. It is also acceptable to address the letter to a title, such as "Dear Hiring Manager," or "Dear Talent Acquisition Team."


Response: ESG stands for environmental, social, and governance, which are important factors for some investors to adhere to. Those investors look for solid management of a company and seek out those that gear toward sustainability and community improvement. In 2020, the popularity of ESG investments took off.


Response: The Lightning Network is a second layer for the Bitcoin blockchain, which serves to speed up transaction times and decreases network congestion. It is a technological solution designed to solve problems associated with the Bitcoin blockchain by introducing off-chain transactions. Its channel is a transaction mechanism between two parties, in which the each can make or receive payments from the other.


What Is an Asset in the Accounting Equation?

Response: An asset is anything with economic value that a company controls that can be used to benefit the business now or in the future. They include fixed assets, such as machinery and buildings. They may include financial assets, such as investments in stocks and bonds. They also may be intangible assets, like patents, trademarks, and goodwill.


What Are the 3 Elements of the Triple Bottom Line (TBL)?

Response: The triple bottom line is an accounting framework that incorporates three dimensions of performance: social, environmental, and financial. These three facets can be summarized as "people, planet, and profit."


Response: A mechanic's lien is a type of lien often used in construction projects. It is also called a construction lien. If the property owner fails to pay a contractor for their work, the contractor can put a lien on that property until the debt is settled.


How Can I Tell If Price Is Moving in a New Direction or If It's Just a Head Fake?

Response: Head-fake trades usually only last a short period of time, perhaps an hour or a day. If the price move coincided with a break of key technical significance, and that technical level is subsequently regained, you're very likely looking at a head-fake move. That's why it's important to keep stop-loss orders tight if you have gone with the price break, so as not to get caught in a head fake, and, more important, miss the potential resumption of the prior trend.


How Can You Protect Yourself from Carding?

Response: You can protect yourself as a seller from carding by using one or more of the newly developed fraud prevention methods like CAPTCHA and CVV requirements. Individuals should be careful with their cards and be on the lookout for signs of tampering when using ATMs and gas pumps.


Response: The Oslo Stock Exchange can be called the Oslo Stock Exchange, Euronext Oslo, or Oslo Børs.


Response: As a federal law, enforcement of the FCRA falls to the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB).


Response: Yes, anyone can trade options. You do not have to work for a financial institution or other company to do this. All you need is to open your own brokerage account. However, it is not that simple. Because options are more complex than trading regular stocks and bonds, your broker will need to approve you to trade options based on multiple factors, such as your trading experience, your financial profile, and your investment goals. If you'd like to trade options, start by speaking to your brokerage to find out what is involved.


Do Other Economic Theories Build on or Challenge Liquidity Preference Theory?

Response: Yes, several contemporary economic theories challenge or build upon liquidity preferences. For instance, rational expectations and market efficiency theories often posit that markets adjust quickly to new information, which might undercut the speculative motive for liquidity preference. In addition, developing new financial instruments and technologies that enhance liquidity and manage liquidity risk can also lead to rethinking liquidity preference. However, modern monetary theory and post-Keynesian economics build upon or extend Keynesian ideas, including liquidity preference theory, to explain modern economic phenomena.


Response: People with significant taxable assets in the estates benefit the most from dynasty trusts. This is because a dynasty trust becomes the asset owner, so the assets are not included in the estate when the grantor passes away.


Response: After dropping out of two universities in the 1960s, Ellison founded a company in 1977 that would later become Oracle. Under his leadership, Oracle has grown into a mammoth firm that employs over 135,000 people and boasted annual revenues of $40 billion in 2021. In addition to driving the massive growth of his company since its founding, Ellison has defined how the global business sector uses big data by developing and launching products used by all of the 100 largest public companies worldwide and by 430,000 customers in 175 countries.


What Is an Example of a Quantity Discount?

Response: If a company sells a product that costs $5, buying 100 of those units would cost $500. To entice buyers to purchase its product, a company may offer a quantity discount, selling 100 units for $450, which would make the per unit cost $4.50 instead of $5; a 10% discount.


Response: Liar's Poker is a non-fiction, semi-autobiographical book by Michael Lewis, recounting his own experiences on Wall Street in the late 1980s.


What Is Witching and Why Is It Quadruple?

Response: In folklore, the late-night "witching hour" was a time of supernatural and occult doings. The appropriation of "witching" to denote the simultaneous expiration of stock and index options and futures contracts was meant to suggest the possibility of surprising market moves driven by the increased trading volumes associated with such quarterly events. In practice, single-stock futures had minimal market impact given the prevalence of stock options. Since single-stock futures no longer trade in the U.S., the quarterly derivatives expiration date is now often called "triple witching."


How Does Immigration Affect the Labor Market?

Response: The effects of immigration are difficult to measure precisely, due to the size and complexity of the modern economy. The classical model of economics predicts that high levels of immigration may cause wages to fall due to an increased supply of labor. However, some studies suggest that immigration can also have a positive effect on aggregate demand, depending on the skillset of the new arrivals. Because new workers are also consumers, the research found that immigration can increase the demand for labor as well as the supply.


Why Were Joint-Stock Companies Important in U.S. History?

Response: Joint-stock companies played a major role in funding the settlement of the original colonies. These companies could raise money from many investors, without exposing any one investor to excessive risk. This allowed the companies to raise enough resources to launch successful settlements in the new world. One famous example was the Virginia Company of London, which funded the settlement at Jamestown.


Which Companies Rank as Most Trusted for Consumer Goods in the U.S.?

Response: Nestlé, PepsiCo, LVMH Moët Hennessy Louis Vuitton, and Proctor & Gamble are the top four ranked companies in 2023 for consumer goods in a survey conducted by EConsumer Goods Technology and Ensemble IQ.


Response: When you identify a continuation pattern on a chart, it suggests that the price of the asset has a greater likelihood of emerging from the pattern in the same direction that it was moving previously. There are several continuation patterns, including the ascending triangle, that technical analysts use as signals that the existing price trend will likely continue. Other examples of continuation patterns include flags, pennants, and rectangles.


Response: Tax-loss harvesting takes advantage of the fact that capital losses can be used to offset capital gains. An investor can "bank" capital losses from unprofitable investments to pay fewer capital gains tax on profitable investments sold during the year. This strategy includes using the proceeds of selling unprofitable investments to buy similar investments that preserve the portfolio's overall balance.


How Does a Convertible Preferred Share Differ from a Convertible Bond?

Response: Both convertible preferred shares and convertible bonds can be converted into common shares, but they differ in several key ways.Convertible bonds, like any bonds, are debts. That gives the owners of convertible preferred bonds priority over the owners of convertible preferred shares in the event of bankruptcy or liquidation. (Both have priority over holders of common stock.)Convertible preferred shares typically pay a fixed cash dividend out of a company’s retained earnings. Convertible bonds pay a coupon rate, which is a periodic interest payment.Finally, most convertible bonds have a specified maturity date, while convertible preferred shares can exist as long as the company remains a going concern.


How Do You Report Income From a C Corporation?

Response: A C corporation should use IRS Form 1120 to report its corporate income taxes. The company may also have employment, Social Security, or Medicare tax liabilities and these can increase the cost of filing taxes as well compared to the other forms of companies.


Response: The term “Dutch auction” stems from the auction style used in 17th century Holland’s tulip markets. The bulbs were wildly popular, and the marketplace for them had been chaotic. The exchange decided that the best way to sell the tulip bulbs was to do it quickly in as few bids as possible—while still getting the best price possible.


Response: The loss of employees can be a problem for corporations because it can mean the reduction of valued talent in the workforce. However, it can also be a good thing. Attrition can force a firm to identify the issues that may be causing it. It also allows companies to cut down labor costs as employees leave by choice and they're not replaced. Eventually, it can lead to the hiring of new employees with fresh ideas and energy.


Response: While some fear recently proposed SEC rule changes may put a damper on activist investing, it has not yet seemed to slow down. After taking a dip in 2020 and 2021 due to COVID19 restrictions, activist investors were seen back above 2019 levels. In fact, shareholder activism activity hit a record high in 2022. Some predict this upward trend will continue through 2023 and beyond despite regulatory roadblocks that may be put in the way, although only time will tell.


How do you calculate growth rate in Excel?

Response: Since growth rate calculations follow a fairly straightforward formula, they can be easily transported into a spreadsheet program like Microsoft Excel to speed up calculations and remove the chance of human error. You will simply need to provide the beginning values, ending values, and the number of periods (if using compound annual growth rate [CAGR], for instance). Note that newer versions of Excel also have a built-in rate of return (RoR) function that can compute CAGR in one step, known as [RRI]. Still, the RRI function uses three arguments: number of periods, start value, and end value.


Response: People have a natural tendency to treat money differently, depending on factors such as its origin and intended use. That way of thinking gradually makes less sense the more you think about it and ends up actually being detrimental to our finances.


Response: This section is called the relationship summary. In June 2019, the SEC amended SEC Form ADV and turned Part 3 into a separate form called SEC Form CRS. This form must be submitted by any firm that provides retail investment services to their clients. Since it serves as a summary of both parts of SEC Form ADV, it must include any identifying information as well as client relationships, services provided, and conflicts of interest among other things.


How Are Collateralized Debt Obligations (CDO) Created?

Response: To create a collateralized debt obligation (CDO), investment banks gather cash flow-generating assets—such as mortgages, bonds, and other types of debt—and repackage them into discrete classes, or tranches based on the level of credit risk assumed by the investor. These tranches of securities become the final investment products, bonds, whose names can reflect their specific underlying assets.


Response: Determining what a "good" net worth is will vary for every individual, according to their life circumstances, financial needs, and lifestyle. The average net worth of an individual in the U.S. was $121,700 in 2019, according to the latest data from the Federal Reserve.


How Is Percentage Change Used in Finance?

Response: Percentage change is often used in finance to track the value increase or decrease of a stock or large market indexes over time. It is also used to compare the values of different currencies.Companies also use percentage change in balance sheets to provide a comparative view of assets over different quarters or years. And they use percentage change in quarterly reports to report trends in their revenues over the same quarter in the prior year.


What Is the Primary Purpose of Capital Budgeting?

Response: Capital budgeting's main goal is to identify projects that produce cash flows that exceed the cost of the project for a company.


What Are the 4 Main Points of the Clayton Antitrust Act?

Response: The Clayton Antitrust Act targeted four anti-competitive practices in particular:mergers,acquisitions,interlocking board directorates, andprice price discrimination


Response: Brand equity is the commercial value of a product's reputation to the company that owns it. A company's price may be determined by adding up the value of its buildings, inventory, and equipment. But its value increases if the company owns one or more brands that have attained a solid reputation with consumers.


Response: Value engineering is the process of designing a product to ensure the value a customer receives is maximized. This is a careful activity of balancing the functions of the product along with the financial consideration of a product. In general, value engineering strives to maximize the benefit a consumer receives while minimizing costs.


Response: Depreciation is considered an indirect cost and is typically included in a company’s overhead. For instance, manufacturing overhead may include utility costs or the depreciation expense of factory equipment.


Response: A military member's monthly base pay is calculated based on their pay grade and the number of years of service. Military base pay is the military member's basic compensation excluding additional allowances. Base pay does not include other forms of compensation that the member receives, such as the basic allowance for housing (BAH), clothing, bonuses, hazard pay, and cost-of-living adjustment (COLA). Annual increases to a member's base pay are calculated by measuring the increase in private-sector wages and salaries as reflected in the employment cost index (ECI).


Response: Nash equilibrium is important because it helps a player determine the best payoff in a situation based on not only their decisions but also the decisions of other parties involved. Nash equilibrium can be utilized in many facets of life, from business strategies to selling a house, from war to social sciences, and so on.


When Did the FTC Ban Waivers of Exemption?

Response: Waivers of exemption have been illegal since 1985, as stated in the Credit Practices Rule.


What Is a Media Kit and Why Is It Important?

Response: A media kit is a bundle of materials and information you put together to hand out to members of the press or other media outlets. Having one is important because it gives reporters numbers to contact, establishes your brand, and promotes your amicability towards sharing information.


What Does the Consumption Function Measure?

Response: The consumption function is an economic concept that explains the relationship between income and spending. It was introduced by British economist John Maynard Keynes, who suggested that economists could use the consumption function to track and estimate total consumer spending in the economy.


How Is Deferred Tax Liability Calculated?

Response: A company might sell a piece of furniture for $1,000 plus a 20% sales tax, payable in monthly installments by the customer. The customer will pay this over two years ($500 + $500).In its financial records, the company will record a sale of $1,000.In its tax records, it will be recorded as $500 per year for two years.The deferred tax liability would be $500 x 20% = $100.


Response: Term loans come in several varieties, usually reflecting the lifespan of the loan. A short-term loan, usually offered to firms that don't qualify for a line of credit, generally runs less than a year, though it can also refer to a loan of up to 18 months or so. An intermediate-term loan generally runs more than one to three years and is paid in monthly installments from a company’s cash flow. A long-term loan runs for three to 25 years, uses company assets as collateral, and requires monthly or quarterly payments from profits or cash flow.


Which Businesses Are Eligible for the General Business Credit?

Response: According to the IRS, an eligible small business is any of the following:A non-publicly traded corporationA partnershipA sole proprietorshipAdditionally, the entity's average annual gross receipts during the prior three tax years can't exceed $50 million. If the business is less than three years old, base the average annual gross receipts on the period the business has existed.


Response: Kahneman and Tversky proposed that losses have a greater emotional impact than a gain of the same amount. They said that, given choices presented two ways—with both offering the same result—an individual will pick the option offering perceived gains.


Response: A quitclaim deed is a document in which a grantor disclaims all interest in a parcel of real property and then conveys that interest to a grantee. Unlike grantors in other types of deeds, the quitclaim grantor does not promise that their interest in the property is actually valid.


How Did Saïd Business School Get its Name?

Response: SBS is named after Syrian-Saudi-Canadian Wafic Saïd. The businessman and philanthropist donated £20 million to facilitate the construction of a building for the business school. Saïd is the chair of the Saïd Foundation, a charity that works with children in Syria, Jordan, Lebanon, and Palestine. He also founded Saïd Holdings, a private investment company.


Response: In practice, it’s very rare for payday loan debt to be written off. This is because payday lenders make significant sums from the interest that they charge on these loans.This means that you should try and pay off payday loans as soon as you possibly can. If you can’t pay back a payday loan, the account may be sent to a collection agency, which will pursue you for the money and interest that you owe. This is not only unpleasant but also can add money to your overall debt—and it will damage your credit.


What Is the Difference Between Sensitivity Analysis and Scenario Analysis?

Response: Sensitivity analysis is the technique of taking a single event and determining different outcomes of that event. For example, a company may analyze its valuation based on several factors that may influence the calculation. On the other hand, scenario analysis relates to more broad conditions where the outcome is not known. For this example, imagine economists trying to project macroeconomic conditions 18 months from now.


What Happens If You Foreclose Your Own House?

Response: If you volunteer to willingly foreclose on your home, your lender will allow you to surrender your home in exchange for canceling the mortgage debt. You must agree to leave the home in good condition and move by a specified date. When you voluntarily foreclose, your credit will take a hit but you will control the terms for leaving your home, and you may even receive money from your lender to finance your move out.


What if the Partnership’s Fiscal Year Is Different From the Partner’s?

Response: This can lead to an unintended income increase for the partner, as guaranteed payments made after the end of a partnership’s fiscal year but before the end of the partner’s fiscal year would get counted as income in the partner’s following fiscal year, not the one in which it is actually made.


Response: Yes, the Equal Credit Opportunity Act applies to all creditors. Financial institutions and other firms engaged in the extension of credit can't discriminate against an applicant based on a prohibited basis during any aspect of a credit transaction. Additionally, lending officers and employees can't do anything that would, on a prohibited basis, discourage a reasonable person from applying for a loan.


What Are the Different Types of Mortgage-Backed Securities?

Response: There are two common types of mortgage-backed securities: pass-through securities and collateralized mortgage obligations, known as CMOs. Pass-through securities are structured as trusts. The mortgage payments are collected and passed on to investors. CMOs are made of pools of securities, called tranches, which are given specific credit ratings and rates that are returned to investors.


What Are Other Terms for Rate of Change?

Response: The rate of change may go by other terms depending on the context. When talking about speed speed or velocity, for instance, acceleration/deceleration is the rate of change. In statistics and regression modeling, the rate of change is defined by the slope of the line of best fit. For populations, the rate of change is called the growth rate. In financial markets, the rate of change is often referred to as momentum.


What Does Marginal Benefit Mean for Producers?

Response: For manufacturers and other suppliers, the marginal benefit for a good represents the incremental profit that they can make by selling additional units of a certain good. This is not necessarily the same as the expected per-unit profit. For example, if a company decides to sell an additional 1,000 bottles of a soft drink, but expects half of them to go unsold, the marginal benefit would be half of the per-unit profit margin.


Response: The Purchasing Managers' Index reading can range between 0 and 100. If the index reading is higher than 50, then it indicates an economic expansion. This means that the closer the reading is to 100, the higher the degree of positive economic growth. A reading below 50 indicates an economic contraction, with readings closer to 0 indicating a higher degree of contraction. A reading of 50 indicates no change in the economic environment.


How Long Must a 10b5-1 Be in Place Before It Can Be Acted Upon?

Response: The SEC has recently declared a 90-day mandatory cooling-off period before a 10b5-1 plan can be implemented. This is to avoid the appearance of potential insider trading and offers the company insider an affirmative defense once they enact their 10b5-1 trading plan.


Is a hammer candlestick pattern bullish?

Response: The hammer candlestick is a bullish trading pattern that may indicate that a stock has reached its bottom and is positioned for trend reversal. Specifically, it indicates that sellers entered the market, pushing the price down, but were later outnumbered by buyers who drove the asset price up. Importantly, the upside price reversal must be confirmed, which means that the next candle must close above the hammer’s previous closing price.


What Is a Good Credit Utilization Ratio?

Response: Credit scores, and prospective lenders, typically favor credit utilization ratios of 30% or less, and the lower, the better.


Response: Yield-oriented investors will generally look for companies that offer high dividend yields, but it is important to dig deeper in order to understand the circumstances leading to the high yield. One approach taken by investors is to focus on companies that have a long track record of maintaining or raising their dividends, while also verifying that those companies have the underlying financial strength to continue paying dividends well into the future. To do so, investors can refer to other metrics such as the current ratio and the dividend payout ratio.


Response: With supply and demand graphs used by economists, the producer surplus would be equal to the triangular area formed above the supply line over to the market price. It can be calculated as the total revenue less the marginal cost of production.


Can I Send Only My Best GRE Score to Schools?

Response: Yes, you have the option to send only your best GRE scores to schools. The ScoreSelect option allows you to choose which scores are sent to institutions, giving you control over which scores they see.


How Do I Interpret the Herfindahl-Hirschman Index (HHI)?

Response: A market with an HHI below 1,500 is considered a competitive marketplace, an HHI of 1,500 to 2,500 is moderately concentrated, and an HHI of 2,500 or greater is highly concentrated. As a general rule, mergers that increase the HHI by more than 200 points in highly concentrated markets raise antitrust concerns, as they are assumed to enhance market power.


Response: Short interest as a percentage of float below 10% indicates strong positive sentiment. Short interest as a percentage of float above 10% is fairly high, indicating significant pessimistic sentiment. Short interest as a percentage of float above 20% is extremely high.


Response: Mathematical optimization is a field of applied mathematics that seeks to find a combination of input variables that maximizes or minimizes the output return of a multi-variable function. When used in business, these techniques could be used to fine-tune production processes to minimize certain costs or increase per-unit output.


Response: John Nash Jr. studied math at Carnegie Institute of Technology. He earned his doctorate at Princeton University in math. He graduated from Princeton at the age of 22.


Can I File an IRS Injured Spouse Form Because of a Spouse’s Student Loan Debt?

Response: In most cases, an injured spouse can file Form 8379 to claim their share of a tax refund before it is used to offset their spouse's debts. However, rules are different in community property states, where the tax refund may be considered shared marital property. In those cases, the IRS will divide the return according to the state community property law.


What Are the Limitations of the Bell Curve?

Response: Although the bell curve is a very useful statistical concept, its applications in finance can be limited because financial phenomena—such as expected stock-market returns—do not fall neatly within a normal distribution. Therefore, relying too heavily on a bell curve when making predictions about these events can lead to unreliable results. Although most analysts are well aware of this limitation, it is relatively difficult to overcome this shortcoming because it is often unclear which statistical distribution to use as an alternative.


Can a Company Survive if They Are Insolvent?

Response: Some companies can survive for a time while being insolvent. Since their assets and liabilities tend to be long-term metrics, they may be able to operate the same as if they were solvent as long as they have liquidity. Liquidity is the capital that a company has to operate their business.


Response: They are called Venn diagrams because the diagram was developed by John Venn, an English logician.


What’s the difference between CIF and CFR?

Response: Cost and freight (CFR) and cost insurance and freight (CIF) are similar. They both relate to transporting goods by sea and divide the responsibilities of transit between the buyer and the seller. Where they differ is that CIF requires marine insurance to be included, at the expense of the seller. With CFR, the seller is not responsible for insuring the goods until they reach the destination port.


Response: Financial advisors focus on asset class as a way to help investors diversify their portfolios to maximize returns. Investing in several different asset classes ensures a certain amount of diversity in investment selections. Each asset class is expected to reflect different risk and return investment characteristics and perform differently in any given market environment.


Response: The invisible hand allows the market to reach equilibrium without government or other interventions forcing it into unnatural patterns. When supply and demand find equilibrium naturally, oversupply and shortages are avoided. The best interest of society is achieved via self-interest and freedom of production and consumption.


What Does the Cash Conversion Cycle Measure?

Response: The cash conversion cycle (CCC) is one of several measures of management effectiveness. It measures how fast a company can convert cash on hand into even more cash on hand. The CCC does this by following the cash, or the capital investment, as it is first converted into inventory and accounts payable (AP), through sales and accounts receivable (AR), and then back into cash. Generally, the lower the number for the CCC, the better it is for the company.


What Are the Components of Break-Even Analysis?

Response: There are five components of break-even analysis including fixed costs, variable costs, revenue, contribution margin, and the break-even point (BEP).


What's the Legal Precedent for Poison Pills?

Response: In Delaware, where many large, listed companies are incorporated, the courts have held that corporate boards have broad discretion in preventing the accumulation of controlling stakes, provided their response is proportional and based on a reasonable perception of a threat.


Response: To file taxes as head of household, you must be considered unmarried, pay at least half of the household expenses, and have either a qualified dependent living with you more than half the year or a parent for whom you cover half of housing costs.


Response: You read a stock quote in a few different parts. If you are just curious about the price of the stock, just look at the "quote." When people talk about what price a stock is trading at, it is this price. If you are trading the stock, you can check the bid price to see what sellers are selling the stock for, or the ask price to see what price buyers will pay. There is always a difference in these two numbers, and it is where market movers make their profits.


Response: The countries with the two highest GDPs in the world are the United States and China. However, their ranking differs depending on how you measure GDP. Using nominal GDP, the United States comes in first with a GDP of $25.46 trillion as of 2022, compared to $17.96 trillion in China.Many economists argue that it is more accurate to use purchasing power parity GDP as a measure of national wealth. By this metric, China is actually the world leader with a 2022 PPP GDP of $30.33 trillion, followed by $25.46 trillion in the United States.


What Was the Worst Hyperinflation in History?

Response: Hungary experienced hyperinflation from August 1945 to Jul 1946, with a daily inflation rate of 207%.


What Is the Difference Between a Loss Carryforward and Carryback?

Response: A loss carryforward allows a business to carryover a loss to the net operating income to reduce its tax liability. This loss can be carried forward over the next 20 subsequent years. By contrast, a loss carryback allows a firm to apply a loss to a previous year's tax return. This results in an immediate refund of the taxes paid in that year.


Response: The bitcoin market is frequently compared with tulipmania, in that both prompted highly speculative prices for a product with little clear utility. Bitcoin prices tend to crash after significant gains, exhibiting many signs of a classic bubble.


Response: "OTCM" Stands for over-the-counter market, which is a market where parties transact the buying and selling of securities with one another without a centralized exchange facilitating the process. "OTCM" can also refer to OTC Markets Group, which owns and operates a trading system to facilitate OTC trading.


Response: The average U.S. recession since 1857 lasted 17 months, although the six recessions since 1980 averaged less than 10 months.


What Should I Do If I Notice an Error or Discrepancy on My Account Statement?

Response: If you notice an error or discrepancy on your account statement, contact your bank immediately. Provide them with the details of the incorrect transaction, and they will initiate an investigation to rectify the issue and ensure your account is accurate.


What Are the Characteristics of a Long-Term Investment Strategy?

Response: A long-term investment strategy aims to hold an investment security for a year or more. Long-term investment strategies come with a higher amount of risk due to the unpredictability of future outcomes. Furthermore, the goal is price appreciation over a long period, rather than immediately, which means riding out dips in a security's price. Long-term investments should also be part of a diversified portfolio to reduce long-term volatility.


Response: PayPal uses end-to-end encryption and users have the option to enable two-factor authentication to increase the security of their transactions. It's as safe as electronic transactions get these days.


Response: Yes, SPAs are legally binding. Often the last document furnished as part of the purchase or sale of an asset, it is signed by authorized representatives from both parties when both sides are prepared to execute the deal.


How Do You Calculate Cost of Goods Sold (COGS)?

Response: Cost of goods sold (COGS) is calculated by adding up the various direct costs required to generate a company’s revenues. Importantly, COGS is based only on the costs that are directly utilized in producing that revenue, such as the company’s inventory or labor costs that can be attributed to specific sales. By contrast, fixed costs such as managerial salaries, rent, and utilities are not included in COGS. Inventory is a particularly important component of COGS, and accounting rules permit several different approaches for how to include it in the calculation.


Response: People most likely to be underinsured include those struggling to make ends meet and those without a decent understanding of how these products work. Insurance, though a relatively simple concept, is often wrapped in complex jargon and pages of fine print. If not properly read and understood, this could lead to big discrepancies between what is expected and what is actually offered.


Response: CVRs are issued at the time that one company acquires another. It represents the difference in the two companies' valuation of the target and provides a benefit to its shareholders. These investors receive the benefit when the acquired company achieves a certain performance achievement.


How do derivative warrants differ from options?

Response: Both derivative warrants and options give the holder the right to buy or sell shares at a set price before a specified date. However, options are listed on an exchange and traded from investor to investor while derivative warrants are issued by the company itself.


Response: A buy stop-limit order combines features of a stop with a limit order. To place a buy stop-limit order, you need to decide on two price points. The first price point is the stop, which is the start of the trade's specified target price. The second price point is the limit price, which is the outside limit of the trade's price target. You must also set a time frame during which your trade is considered executable.After your stop price has been reached, your stop-limit order converts to a limit order. Your limit order will then be executed at your specified price or better. The main benefit of a buy stop-limit order is that it enables traders to better control the price at which they buy a security.


Is a Finder's Fee Always a Monetary Reward?

Response: No, it isn't. Depending on the parties involved and the business transaction that closed, the finder's fee could be a non-monetary gift selected as a simple thank-you.


Response: The IS-LM model has limited use as a shortcut that enables quick decision-making. Because it is too simplistic, it is not useful for formulating tax or spending policies. Even its creator, John Hicks, called it “a classroom gadget” and expected it to be eventually replaced by something more sophisticated.


How Do I Find a Company's Stock Ticker Symbol?

Response: To find a company's ticker symbol, you can search online financial databases, check the company's website, check the stock exchange's website, or ask a financial advisor or broker.If you are having trouble finding a company's ticker symbol, it is possible that the company is not publicly traded or is listed on an exchange outside of the United States. In these cases, it may be more difficult to find the ticker symbol.


Response: Industry reports indicate that CFA charterholders are paid more than those who have not completed the program. According to test prep provider 300 Hours, a CFA charterholder earns, on average, 57% more than a Level I candidate when controlling for years of work experience.


Is It Better to Outsource or Keep In-House?

Response: There are benefits and disadvantages to outsourcing certain roles, as there are with keeping those operations in-house. A company has greater control over the direction and management of work by its in-house employees than it would over an outside contractor. On the other hand, outside companies may have more experience and resources with certain tasks, such as legal services. In addition, a company must pay the full salary and benefits of its in-house employees. Outsourcing those roles to another company could cost more or less than keeping those roles in-house, depending on the nature of the task.


Who Are the Parties in Third-Party Insurance?

Response: For an insurance policy, the first party is the person or business that purchases the insurance (the insured). The second party is the company providing the insurance (the insurer). A third party is some outside person or business that makes a claim for damages from the first party.


Response: The Gramm-Beach-Bliley Act was introduced in 1999 to protect customers from financial firms sharing their sensitive data and information. The act repealed parts of the Glass-Steagall Act of 1933, which had previously prohibited banks from offering investment, commercial banking, and insurance services. The GLBA aimed to modernize the financial industry by allowing these different types of financial institutions to merge and operate under a single holding company.


How Much Money Has Been Repatriated Since 2000?

Response: Billions of dollars have been repatriated back to the United States since 2000. As much as $777 billion in cash stored overseas was repatriated by corporations back to the United States in 2018, according to the Federal Reserve. This was largely due to the passing of the Tax Cuts and Jobs Act, which lowered the transition tax for corporations that wanted to exchange their foreign-held currency into U.S. dollars.


Response: Chi-square is a statistical test used to examine the differences between categorical variables from a random sample in order to judge the goodness of fit between expected and observed results.


Response: Going concern is important because it is a signal of trust about the longevity and future of a company. Without it, business would not offer nearly as much credit sales as suppliers, vendors, and other companies may not pay the company if there is little belief these companies will survive.


How do product portfolios differ among companies?

Response: Each product portfolio will, of course, be specific to the company in question, meaning no two portfolios are exactly alike, though they may be similar. Older companies generally have portfolios that are more greatly diversified than younger companies, having been in business longer with more opportunity to expand. As a result, they have less operational volatility than younger companies, which may rely upon the performance of fewer products, opening them up to greater risk.


What Is Scenario Analysis in Strategic Management?

Response: Scenario analysis can be applied to almost any managerial decision, particularly those related to competitive strategy. Said differently, scenario analysis allows managers to test strategic proposals—for example, whether or not to acquire a smaller competitor—and figure out how it will turn out under different conditions.


What are the most popular asset classes?

Response: Historically, the three main asset classes have been equities (stocks), fixed income (bonds), and cash equivalent or money market instruments. Currently, most investment professionals include real estate, commodities, futures, other financial derivatives, and even cryptocurrencies in the asset class mix.


How Is a Monthly Absorption Rate Calcuated?

Response: In order to determine a monthly absorption rate, take the total number of homes sold in the market and divide that by 12. Then, divide this monthly average number of homes sold by the total number of homes available for sale.


Which asset class has the best historical returns?

Response: The stock market has proven to produce the highest returns over extended periods of time. Since the late 1920s, the compound annual growth rate (CAGR) for the S&P 500 is about 6.6%, assuming that all dividends were reinvested and adjusted for inflation.In other words, $100 invested in the S&P 500 on Jan. 1, 1928, would have been worth about $46,833 (in 1928 dollars) by Dec. 31, 2023, without adjusting for inflation. The total would have grown to $836,206 in 2023 dollars. By comparison, the same $100 invested in five-year Treasuries would have been worth only about $7,278 in today’s dollars.


How Is the Head of the Securities and Exchange Commission Chosen?

Response: The Securities and Exchange Commission is headed by five commissioners, who serve five-year terms and are appointed by the president with the consent of the Senate. The president also designates one of those commissioners to be the chairman of the body.


How Does the Share Economy Differ From the Conventional Economy?

Response: The share economy has several distinct characteristics:It allows direct interaction between buyer and seller, without a retail go-between.It's a short-term commitment for one job, not a contract for ongoing services.It stretches one person's resources or skills to serve many others.


Response: Marginal cost is an economics concept that plays an important role in business management since it can help businesses optimize their production levels. It refers to the incremental cost of adding one more unit of production, such as producing one more product or delivering one more service to customers. It is generally associated with manufacturing businesses, although the concept can be applied to other types of businesses as well.


What Does New Zealand’s Currency Look Like?

Response: Each banknote and coin of New Zealand's currency looks different. The currency usually has a bird on one side of a banknote or coin as well as an important historical figure of New Zealand. The currency also comes in very bright colors.


Response: Yes, prepaid expense is recorded as a current asset. Current assets are assets that a company plans to use or sell within a year; they are short-term assets. Most often, this is where the prepaid expense line item is recorded. If any prepaid expense will not be used within a year, then it must be recorded as a long-term asset.


What Does "Laissez-Faire" Mean Literally?

Response: Laissez-Faire, in French, literally means "let it be." Legend has it that the origins of the phrase "laissez-faire" in an economic context came from a 1681 meeting between the French finance minister Jean-Baptise Colbert and a businessman named Le Gendre. As the story goes, Colbert asked Le Gendre how best the government could help commerce, to which Le Gendre replied "Laissez-nous faire;" basically, "Let it be." The Physiocrats popularized the phrase, using it to name their core economic doctrine.


Response: Although cap and trade aims to reduce emissions and pollution, it has some drawbacks affecting the economy. When implemented it leads to an increase in the cost of energy.


How Can Companies Overcome Non-Tariff Barriers?

Response: Companies can employ several strategies to overcome non-tariff barriers in international trade. Firstly, they can invest in thorough research to ets. . Additionally, companies can engage in dialogue with government authorities to advocate for trade facilitation measures and compliance support.


What Is an Example of Financial Leverage?

Response: An example of financial leverage is buying a rental property. If the investor only puts 20% down, they borrow the remaining 80% of the cost to acquire the property from a lender. Then, the investor attempts to rent the property out, using rental income to pay the principal and debt due each month. If the investor can cover its obligation by the income it receives, it has successfully utilized leverage to gain personal resources (i.e., ownership of the house) and potential residual income.


Response: The SONIA rate calculated, published, and set on June 15, 2023, was 4.42840%.


Response: A trade surplus occurs when the value of a country's exports exceeds the value of its imports. This indicates a positive inflow of money, shown by the balance of trade being a positive number.


Why Is Retirement Planning So Important?

Response: Retirement planning allows you to sock away enough money to maintain the same lifestyle you currently have. After all, no one wants to work right up until the end. While you may work part-time or pick up the odd gig here or there, it probably won't be enough to sustain your current lifestyle. And Social Security benefits will only take you so far. That's why it's so important to have a viable plan that allows you to get the maximum amount of money when you retire.


Response: There are a few reasons why one would refinance their home. The primary reason is to obtain more favorable loan terms than before. This is usually seen in a lower interest rate on your mortgage, which makes your mortgage cheaper, resulting in lower monthly payments. Other reasons to refinance your home include changing the term on the mortgage or taking out a cash value from the home's equity to use for other purposes, such as paying off debts or renovating your home.


Response: In economics, as well as in finance, an event study refers to whether or not a statistical relationship exists in the financial markets between a specific event and a public company's stock price or value.


Response: The upside/downside ratio is a metric used by technical analysts to determine the direction change of financial assets. More specifically, it calculates the upward versus downward volume. This ratio is calculated by dividing advancing issues (volume traded that close above their opening price) by declining issues (volume traded that close below their opening price).Analysts and investors use this ratio to understand the momentum of a financial instrument, company, market, sector, or economy at any given time. This helps identify entry and exit points to maximize gains and minimize losses.


Response: When a company does not have sufficient capital to purchase merchandise, a bank may lend the company the resources to the company, but retain ownership rights, through a trust receipt transaction. Under the terms of a trust receipt agreement, the company agrees to repay the bank once the merchandise has been sold.


What Are Interest Rate Differential Calculations Used for?

Response: IRD calculations are used to demonstrate the difference in interest rates between two financial securities, usually in fixed income trading, forex trading, and lending calculations.


Response: The acronym AARP originally stood for the American Association of Retired Persons. The organization officially changed its name to AARP in 1999 as a way of recognizing that many members were not yet retired or continued to work part time.


How Is Bitcoin Cash Different From Bitcoin?

Response: Bitcoin Cash was created to allow more transactions in a single block, theoretically decreasing fees and transaction times. But in spite of the philosophical differences that led to the hard fork, Bitcoin Cash and Bitcoin share several technical similarities. They use the same consensus mechanism and have capped their supply at 21 million coins.


Response: There are two main approaches to calculating FCF.The first approach uses cash flow from operating activities as the starting point and then makes adjustments for interest expense, the tax shield on interest expense, and any capital expenditures (CapEx) undertaken that year.The second approach uses earnings before interest and taxes (EBIT) as the starting point, then adjusts for income taxes, non-cash expenses such as depreciation and amortization, changes in working capital, and CapEx.In both cases, the resulting numbers should be identical, but one approach may be preferred over the other depending on what financial information is available.


What Is a Black Swan Event in the Stock Market?

Response: A black swan event in the stock market is often a market crash that exceeds six standard deviations, making it exceedingly rare from a probabilistic standpoint. Some have argued that stock prices are "fat-tailed" and that such events are, in reality, more frequent than the statistics would let on.


What Is the Difference Between EBITA and EBITDA?

Response: Each of these is a measure of profitability used by analysts: earnings before interest, taxes, and amortization (EBITA) and earnings before interest, taxes, depreciation, and amortization (EBITDA). Both are used to gauge a company’s profitability, efficiency, or value. EBITDA is the more commonly used measure because it adds depreciation—the accounting practice of recording the reduced value of a company’s tangible assets over time—to the list of factors.


What is the difference between value at risk (VaR) and standard deviation?

Response: Value at risk (VaR) is a measure of the potential loss that an asset, portfolio, or firm might experience over a given period of time. Standard deviation, on the other hand, measures how much returns vary over time. It is a measure of volatility in the market: The smaller the standard deviation, the lower an investment’s risk, and the larger the standard deviation, the more volatile it is.


Response: EFTA applies to all persons, including offices of foreign financial institutions in the United States that offer EFT services to residents of any state. It covers any account located in the United States through which EFTs are offered to a resident of a state, no matter where a particular transfer occurs.


How Long Was Michael Bloomberg Mayor of NYC?

Response: He served as the mayor of NYC from 2002 until the end of 2013. When he served as mayor, he helped push the smoking ban into effect.


Response: A medium of exchange works if its value is immediately recognizable, reasonably stable, and portable. It then serves its purpose as an intermediary for the exchange of goods or services between two parties.


What Are Typical Terms for Hard Money Loan?

Response: Hard money loans are a form of short-term financing, with the loan term lasting between 3 and 36 months. Most hard money lenders can lend up to 65% to 75% of the property’s current value, at an interest rate of 10% to 18%.


The DJIA Is Based on the Prices of How Many Stocks?

Response: The Dow Jones Industrial Average is made up of 30 large stocks. All the stocks are based in the United States. The DJIA is also known as the Dow 30.


Why Is Natural Gas Called the Widow Maker?

Response: Natural gas is called a widow maker because investors seek to take advantage of the spread between March natural gas futures contracts (when trading hits a low due to the end of winter) and April natural gas futures contracts (when utilities resupply natural gas storage). Depending on the demand/need for natural gas throughout winter, if investors are on the wrong side of the trade, misjudging the spread, their investments can be wiped out. The volatility of the spread causes it to be a widow maker trade.


Response: Preferred stock often provides more stability and cashflow compared to common stock. Therefore, investors looking to hold equities but not overexpose their portfolio to risk often buy preferred stock. In addition, preferred stock receives favorable tax treatment; therefore, institutional investors and large firms may be enticed to the investment due to its tax advantages.


What Is the Difference Between Cash Accounting and Accrual Accounting?

Response: Cash accounting records payments and receipts when they are received. Accrual records payments and receipts when services or good are provided or debt is incurred.


What Are Some Negative Effects of an Oligopoly?

Response: An oligopoly is when a few companies exert significant control over a given market. Together, these companies may control prices by colluding with each other, ultimately providing uncompetitive prices in the market. Among other detrimental effects of an oligopoly include limiting new entrants in the market and decreased innovation. Oligopolies have been found in the oil industry, railroad companies, wireless carriers, and big tech.


How Does a Collar Protect Against Losses?

Response: The downside put places a floor below the stock price, limiting losses to the difference between the put strike price and the original stock price minus the premium received for the call. The put strike is selected based on the level of downside protection desired. Meanwhile, the short reduces the cost of the strategy but caps the upside potential as the gains in the existing shares will be offset by equivalent losses in that call option.


Response: Demographics refers to the description or distribution of characteristics of some target audience, customer base, or population. Governments use socioeconomic information to understand the age, racial makeup, and income distribution (among several other variables) in neighborhoods, cities, states, and nations in order to make better public policy decisions.Companies look to demographics to craft more effective marketing and advertising campaigns and to understand patterns among different audiences.


How Much Gold Does a Krugerrand Contain?

Response: A Krugerrand coin contains one ounce of gold, and weighs a total of 1.09 ounces due to the trace presence of copper alloy that makes the coins more durable.


Response: Margin traders deposit cash or securities as collateral to borrow cash for trading. In stock markets, they can typically borrow up to 50% of the total cost of making a trade, with the rest coming from their margin collateral. They then use the borrowed cash to make speculative trades. If the trader loses too much money, the broker will liquidate the trader's collateral to make up for the loss.


Response: Causa mortis is the term used for a gift given "because of death." When someone is contemplating their death, such as when they are dying, and give someone a gift with significant value, it is known as a gift causa mortis.


Response: Hawks and hawkish policy are more aggressive in nature, whether in terms of monetary policy or military stance during a potential conflict. It is named after hawks, the aggressive birds of prey.The opposite are a dove and dovish policies, seen as more meek or conservative. These epitomize the peaceful symbolism of another bird, the dove.


What Are the Benefits of Credit Default Swaps?

Response: Credit default swaps are beneficial for two main reasons: hedging risk and speculation. To hedge risk, investors buy credit default swaps to add a layer of insurance to protect a bond, such as a mortgage-backed security, from defaulting on its payments. In turn, a third party assumes the risk in exchange for a premium. By contrast, when investors speculate on credit default swaps, they are betting on the credit quality of the reference entity.


Response: How you make a media kit depends on what you do. Generally, it includes contact information, company history, mission and vision statements, biographies, client stories, and anything else you think might interest the press. It can also be as minimal as a webpage with basic information.


What Are the Do's and Don'ts of Cross-Selling?

Response: When cross-selling, consider your loyal customers who are more likely to purchase again. Build campaigns focusing on satisfied customers and promote additional products to them. Train associates to recognize satisfied customers and assess their needs.On the other hand, don't assume that customers are aware of your other offerings. Educate them, and help them understand how those products can deliver value. When speaking to a customer, do so in a personable manner; otherwise, it comes across as a sales pitch. Lastly, avoid unhappy customers as it can further the divide between them and your brand.


What Are the 2 Types of Monetary Policy?

Response: Monetary policy includes the policies set by a nation's central bank. The policies are generally categorized as expansionary monetary policy or contractionary monetary policy. The former is needed to spur and grow the economy when it is slow or in a recession. This involves low interest rates. A contractionary monetary policy is one where the economy needs to slow down or curb high inflation. This involves high interest rates.


Response: You apply for an FHA loan directly with the bank or other lender that you choose. Most banks and mortgage lenders are approved for FHA loans.You can apply for pre-approval of an FHA loan with the lender you choose. The lender will gather enough financial information to issue (or deny) a pre-approval within a day or so. That will give you an idea of how much you can borrow while not committing yourself to anything.All of the above is true for any mortgage application. If you want an FHA loan you should say that upfront.