What's it: Alternative investment is an asset or instrument available as another possibility for us to generate returns and accumulate wealth. They do not fall into conventional investment categories such as equity, fixed income, and cash and
Finance
Derivatives: Examples, Purposes, Major Players, Markets For Transactions
What's it: Derivatives are financial instruments whose value is derived from one or more underlying assets. To put it another way, the price depends on the underlying asset. Thus, price fluctuations in the underlying asset ultimately
Complete Bond Features. What You Need To Know.
Bond features differ from bond to bond. These features ultimately affect the risk and return we get when we buy bonds. For example, we differentiate bonds based on their issuer, which can come from corporations, governments, or
Common Stock: How it Works, Types, Features, Advantages, and Disadvantages
What's it: Common stock or ordinary stock is a security representing ownership in a company. Therefore, buying it makes us a shareholder. And as long as we hold it, we have the right to earn profits distributed as dividends without
Securities. Examples: Equity, Debt Instruments, Pooled investment, Derivatives
What's it: Securities are tradable certificates or financial assets, which we can buy for regular income or sell later for a profit when the price goes up. They have many variations. Equities and bonds are the most
Financial Market Investors: Roles and Types
Who’re they: Financial market investors are those who invest money in financial markets to earn returns. They may be retail investors or institutional investors. They trade various financial instruments such as stocks, bonds,
Capital Budgeting: Importance, Methods For Assessing Project Feasibility
What's it: Capital budgeting is a process for estimating revenue and capital expenditure. It is usually associated with assessing how profitable or worthy the company's capital investments or key projects are. The capital investment may
Accounting and Finance Department: Roles and Links with Other Departments
What's it: The accounting and finance department is concerned with planning, managing, and controlling financial resources, including managing records and information related to business finances. In addition, the department is responsible for
Net Profit Margin: Formula, Calculation, Interpretation
What's it: Net profit margin is a profitability ratio to measure how much profit is left (in percent) after the company has covered all its costs, including interest expense and taxes. We calculate it by dividing net profit by revenue.