What is net premium and why should you care about it
Net premium is the dollar amount an insurance company expects to pay out in claims minus expenses. In order to make a profit, the company must collect more in...
What is graded vesting
When an employee is granted stock options, they may not be able to immediately exercise those options. This is because the options may vest over time, meaning that the employee must remain with the company for...
What is an investment multiplier and how does it work
An investment multiplier is an economic tool that measures the impact of a change in investment on the level of economic activity. The multiplier effect occurs when an increase in...
What is an unfavorable variance
An unfavorable variance is when actual results are worse than expected. For example, if a company was expecting to make a profit of $10,000 but only made $5,000, that would be an unfavorable variance of...
What is the Piotroski Score
The Piotroski Score is a nine-point scale that is used to evaluate the financial health of a company. It was developed by Joseph Piotroski, a professor at Stanford University. The score ranges from 0 to...
What is an underwriting spread
Underwriting spreads are used by lenders to protect themselves from loss in the event of borrower default. The spread is the difference between the interest rate charged to the borrower and the rate paid by...
What is weather insurance
Weather insurance is a type of insurance that helps protect businesses and organizations from financial losses due to weather-related events. Weather insurance can cover events such as hurricanes, floods, drought, and extreme temperatures. This type of...
What is volatility arbitrage
Volatility arbitrage is a type of statistical arbitrage that is implemented by trading a group of securities that are predicted to have similar price movements. The aim of volatility arbitrage is to exploit the differences in...
What is a brownfield investment and why should you consider them
A brownfield investment is the purchase of an industrial or commercial property where the potential for environmental contamination is known. Brownfields are often abandoned or under-utilized properties, such as...
What is the unlimited marital deduction
The unlimited marital deduction is a tax deduction that allows spouses to transfer an unlimited amount of assets to one another without incurring any gift or estate taxes. This deduction is available regardless of...