Understanding the Cash Flow Statement
Operating cash flow is an important metric for investors and financial analysts. There are three main types of operating activities, and they are selling products and services, manufacturing them in-house, and supplying other companies with...
What is a forward contract
A forward contract is a type of financial agreement between two parties in which both agree to buy or sell an asset at a set price and date in the future. Unlike a futures contract,...
Countertrade
Countertrade is a vital aspect of global marketing, and a company that doesn't understand it risks losing market share to competitors. Countertrade is fueled by two factors: currency convertibility and country advantages. Countries that are more accessible to hard...
What is Form 2439 and what is it used for
Form 2439 is a form that is used to report certain types of income that are not subject to withholding. This includes interest and dividends from stocks and mutual funds,...
What is unrecaptured section 1250 gain
Unrecaptured section 1250 gain is the portion of a capital gain that is subject to a maximum tax rate of 25%. This gain results from the sale of property that has been depreciated over...
What Is a Recapitalization?
A recapitalization is a corporate reorganization involving a substantial change in a company's capital structure. This change may be motivated by many different factors, including a need to increase capital or a desire to restructure. Regardless...
What are transaction costs and why are they important
Transaction costs are defined as the costs associated with making a transaction, such as the cost of goods, services, and information. They can also include the costs of search, negotiation, and...
If you haven't heard of mezzanine financing before, you are not alone. It's a type of equity financing whereby investors contribute capital in exchange for preferred stock or subordinated debt. Both types of financing are used for the same...
What is a Special Power of Attorney
A Special Power of Attorney (SPA) is a legal document that gives someone else the authority to act on your behalf in a specific situation. This could be anything from signing documents on...
Gray Market
The term "gray market" refers to an underground or shadow market, which trades commodities in channels that are not authorized by the manufacturer. This can include websites and auction sites. However, if you're using the internet to purchase...