Cyclical Industry
What are the indicators of cyclical industry? Cyclical industry are exchange affiliations, privately-owned companies and acquiring supervisors. Each of these indicators can indicate the general health of a sector. The economic downturn is usually followed by the cyclical industries. However, in some sectors, the downturn is a long-term phenomenon, indicating that cyclical industries are not the best time to buy. Consumer...
Bad Debt Allowance
What is a bad debt allowance and why is it important A bad debt allowance is an estimate of the amount of money that a company will not be able to collect from customers. This allowance is important because it helps to ensure that the company's financial statements are accurate. Bad debts can have a major impact on a company's...
Key Steps to Protect Your Finances During Troubled Times
Our experiences during the last several years have seen us witness unprecedented times. We went from business as usual, to the world going into sudden lockdowns. Entire sectors of the economy crumbled as social distancing became the law of the land. Instead of working at the office, we were confined to work from home. Businesses closed and lots of...
Noncumulative
What is Noncumulative A noncumulative preferred stock is a type of this investment that doesn't offer holders the right to have any missed or unpaid dividends paid to them before common shareholders receive their dividend payments. Instead, if there are no profits or if all profits are paid out as dividends to common shareholders, then preferred shareholders don't receive anything....
Attribution Analysis
What is attribution analysis and what are its benefits Attribution analysis is a tool that can be used to understand how different marketing activities contribute to sales. By tracking conversions and attributing them to the various marketing channels that a customer was exposed to, businesses can get a better understanding of which channels are most effective. This information can then...
Liquidating Dividend
What is a liquidating dividend A liquidating dividend is a type of payment that is made to shareholders when a company is being dissolved. The payment is made out of the company's assets, and it is typically distributed in proportion to the shareholders' ownership stake in the company. Liquidating dividends can be either cash or property, and they are typically...
Market Dynamics
Market Dynamics Models to Help You Identify Focus Points and Niches For Your New Products Understanding market dynamics can help you identify focus points and niches for your new products. For example, increased demand may result in increased supply in the market, lowering prices and returning to the earlier level of manufacture. By determining the focus points of your product,...
Marginal Benefits
What are marginal benefits and how can they be used to improve your life In economics, the marginal benefits of a good or service is the extra benefit that a consumer receives from consuming one additional unit of that good or service. In other words, it is the benefit that a consumer experiences when they consume an additional unit of...
Delinquency Rate
What is delinquency rate and what factors influence it The delinquency rate is a statistic that measures the percentage of children and adolescents in a population who have committed an act that would be considered criminal if they were adults. There are many factors that can influence the delinquency rate, including poverty, family structure, community violence, and peer pressure. One of...
Financial Instrument
What is a financial instrument A financial instrument is a contract between two parties that has monetary value and can be traded. The most common types of financial instruments are bonds, stocks, and derivatives. Bonds are debt instruments that represent a loan from the bondholder to the issuer. The bond matures on a certain date, at which point the issuer...