What is a functional currency and how does it work
A functional currency is the currency of a country in which a company primarily earns and spends its income. In most cases, this will be the same as the company's...
What is the operating cash flow ratio and what does it measure
The operating cash flow ratio is a financial metric that measures a company's ability to generate cash flow from its operations. The ratio is calculated by dividing a...
A golden handshake clause is a clause in an executive employment contract that provides a significant severance package if an executive is terminated due to restructuring, scheduled retirement, or other reasons. These agreements are commonplace in corporate America. While...
What are bearer bonds and how do they work
Bearer bonds are a type of debt security in which the owner, or "bearer," is entitled to the bond's interest payments and principal. Unlike most other types of bonds, which are...
Overleveraged means to borrow more money than you can afford to repay. The nation of Greece is an example of a country that has become overly leveraged. Its economy is suffering and many are wondering how they can get...
What is a loan constant
A loan constant, also known as a mortgage constant, is the percentage of your loan's monthly payment that is devoted to paying off the principal. The loan constant is an important tool for evaluating a...
What is a bullet bond
A bullet bond is a type of corporate bond that is typically issued by companies with below-investment-grade credit ratings. As the name suggests, bullet bonds have a single maturity date, meaning that the entire principal...
What is the Uniform Securities Act and what does it do
The Uniform Securities Act is a set of laws that governs the offer and sale of securities. These laws are designed to protect investors from fraud and misrepresentation, and...
What is hot money?
Basically, hot money is the flow of funds from one country to another. It is supposed to generate a profit on short-term interest rate differentials and exchange rate shifts. The goal of hot money is to...
What is asset valuation and why is it important
Asset valuation is the process of determining the worth of an asset. The value may be determined for different purposes, such as insurance, resale, or tax assessment. Importantly, the value of...