Finance Reference

What is flotation cost and why is it important to investors Flotation cost is the costs incurred by a company when it sells new securities....

What is Negative Assurance Negative assurance is a type of assurance that is typically given by auditors in order to mitigate their own risk. In...

What Is a Wrap Account? A wrap account is a kind of investment account in which an investor can consolidate all his or her financial...

What is a demand draft and how does it work A demand draft is a type of check that is typically used for business transactions....

What is a revenue bond A revenue bond is a type of bond that is backed by the revenue from a specific project or source....

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...

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,...

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...

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...

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...