Earnings
The amount of money that a company generates during a specific time period is called as ‘earnings’. This amount of money, to put it simply is the profits it has made in a certain amount of time which is usually defined as a quarter or a year. Earnings: Simple to calculate or complex? To elaborate this further, consider you have a...
Keiretsu
Definition Keiretsu is a group of companies that are intertwined in terms of business relationships and stock ownership. An example of an informal business group is the entrepreneur's association. During the second half of the twentieth century, the keiretsu retained its grip on the Japanese economy. What is 'Keiretsu' A loose agglomeration of businesses that share one or more common denominators is...
Depreciation
What is depreciation and how does it work Depreciation is an accounting method used to spread the cost of a long-term asset over its useful life. depreciation is used to account for declines in value due to obsolescence, wear and tear, or depletion. The depreciation expense is reported on the income statement as a reduction of revenue. For tax purposes,...
Credit Card
DefinitionA credit card is a payment card issued to users to enable the cardholder to pay a merchant for goods and services based on the cardholder's promise to the card issuer to pay them for the amounts so paid plus the other agreed charges. The card issuer creates a revolving account and grants a line of credit to the...
Portfolio
The grouping together of financial assets like cash equivalents, bonds, stocks and their counterparts whether they are closed fund or exchange related is known as a portfolio. These portfolios are managed by financial professionals but are held by investors. Understanding Portfolio A portfolio should be assembled after keeping the investing objectives and risk tolerance in mind. Let’s take an...
Short
Source: WikipediaLast Sourced: 2021-02-01This Article has been Edited for Accessibility Further Reading Cointegration: how short is the long run? - www.sciencedirect.com The economics of short-term performance obsession - www.tandfonline.com Short-term financing in a cash-constrained supply chain - www.sciencedirect.com Cash holding, trade credit and access to short-term bank finance - www.sciencedirect.com The twin deficits hypothesis and reverse causality: A...
Wash
What is 'Wash' A series of transactions that results in a zero net sum gain. This can be the result of a loss on one investment and a gain on another or it can be the result of buying and selling the stock of a single company. Investors should be aware of the fact that there are tax consequences to...
Gator
What is 'Gator' The name of a software company best known for its adware products. Adware is pop-up interest advertising and Gator was one of the first companies to promote widespread adware. In addition to pop-up advertising, Gator adware tracks an online user's browsing habits and also silently downloads its software which can create significant computer problems...
Underperform
What does 'Underperform' mean Underperform is an analyst recommendation when a stock is expected to do slightly worse than the market return. Also known as market underperform, moderate sell, or weak hold. Explaining 'Underperform' Exact definitions vary between brokerages, but in general this rating is worse than neutral but better than sell or...
Offset
What does 'Offset' mean An offset involves assuming an opposite position in regards to the original opening position. Additionally, to offset is to liquidate a futures position by entering an equivalent but opposite transaction that eliminates the delivery obligation. The goal of offsetting is to reduce an investor's net position in an investment to zero so that...