What is Tier 1 Capital Ratio
Tier 1 capital is the core measure of a bank's financial strength from a regulator's perspective. It consists primarily of equity capital and disclosure reserves, and it is a key measure of a bank's...
What is reinvestment rate and why is it important
The reinvestment rate is the percentage of cash flow that a company reinvests into its business, and it is a key determinant of growth. A high reinvestment rate indicates that a...
What is Roll Yield
Roll yield is the theoretical return an investor would receive if they were to roll their position in a futures contract forward to the next delivery date. The roll yield is calculated by taking the difference...
What are issued shares and why are they important
When a company goes public, it sells shares of stock to raise capital. Investors who buy these shares become partial owners of the company and are entitled to a share of...
Best Practices for Voluntary Compliance
One of the ways a company can practice its corporate social responsibility is through voluntary compliance. This type of program ensures that employees have access to company policies and procedures. However, it can also lead...
What is the Heston Model and how can it be used in business
The Heston model is a mathematical model used to describe the evolution of a stochastic process. It was first proposed by Steven Heston in 1993 and has...
What is Dividend Policy
A company's dividend policy is the strategy the company uses to determine how much it will pay out to shareholders in dividends. This includes how often the company will make dividend payments, as well as the...
What is weighted alpha and what does it measure
Weighted alpha is a measure of how much a stock has risen or fallen over a one-year period. It takes into account the stock's price changes as well as any dividends...
What is a Leveraged Loan
A leveraged loan is a type of financing that is secured by collateral, typically a company’s assets. The collateral provides protection for the lenders in the event that the borrower defaults on the loan. Leveraged...
What is forfaiting and how does it work
Forfaiting is a way of financing international trade by reducing the risk to the buyer. In forfaiting, the seller agrees to accept a discounted payment in exchange for an upfront payment. This...