Escrow Agent
What is an Escrow Agent
An escrow agent is a third party who holds funds on behalf of two parties in a transaction. They ensures...
Treynor Reward
The Treynor Reward to Volatility Model
The Treynor reward to volatility model is named for the famous economist Jack L. Treynor and measures the excess...
Invested Capital
What Is Return on Invested Capital?
When evaluating a company's value, it's important to consider how much of it is invested in its stock. Companies...
Form 1045
What is Form 1045 and what is it used for
Form 1045 is an IRS form that can be used for certain taxpayers to claim...
Mean Reversion and Momentum
Mean Reversion and Momentum
Mean reversion is a financial concept that states that an asset price tends to return to its average value over time....
Imprest
What is imprest and how is it used in business
Imprest is a type of fund that is used to finance petty cash expenses. The...
Service Charge
The Legal Status of a Service Charge
A service charge is a finance charge that is triggered by a specific event. It can be assessed...
How to Calculate the Average Collection Period
How to Calculate the Average Collection Period
When you're setting up credit terms for your customers, you want to ensure that the average collection period...
Work Ticket
What is a work ticket and what are its uses
A work ticket is a document that authorizes a worker to perform a specific job...
Wraparound Mortgage
How to Choose a Wraparound Mortgage
Wraparound mortgage, also known as a "wrap," is a type of secondary mortgage in which the seller extends a...