The S&P 500 is a crucial index in the financial world, often serving as a barometer for the overall health of the United States stock market and, by extension, the …
Beta Definition and Its Impact on Investment Decisions
The concept of Beta is integral to modern investment theory, playing a crucial role in portfolio management and risk assessment. Understanding Beta helps investors gauge the volatility of an investment …
Bull Market Definition and Its Significance in European Financial Markets
Understanding the concept of a bull market is essential for investors navigating the ever-changing landscape of financial markets. This article delves into what a bull market is, provides historical and …
Investment Terms Explained for Beginners
If you’re just starting out in the investing world, the complicated jargon can become very confusing. Many people are put off investing altogether when they first come across a number …
Stock Market Definition
Stock market definition The stock market represents the aggregate value of all publicly traded shares, also known as stocks or equities, across all stock exchanges around the world. Shares of …
Importance of Accounts Payable Financing for Business
Accounts payable financing or also referred to as vendor financing or trade credit, is a form of credit that allows businesses to borrow money from a vendor for purchasing their …
How Supply Chain Finance Helps To Satisfy Demand
In our latest post in a series on business finance, we’re looking at supply chain finance. We’ve recently covered how corporate finance textbooks have expanded their remit to include commercial …
Getting An MBA to Propel Your Finance Career
So, you’re interested in working in finance. There are hundreds of potential roles to discover. Getting an MBA could help to propel you into a finance career. If you want …
Avoiding The Damaging Credit Impact of Loan Charge-Offs
Many small businesses depend on financing to meet working capital deficits in the early stages, either in the form of unsecured loans or credit cards. However, when unable to pay …
A 5-Step Guide To Get Approved For A Commercial Property Loan
A financing solution often favoured by real estate investors is a commercial property loan or commercial real estate loan. This type of loan is typically used to renovate or purchase …
How to Finance a Start-Up Company
Once you have an idea for your business, it’s time to gather the funds to put your plan into action. Every start-up business needs some funding to get off the …
How Much Does it Cost to Run a Successful Taxi Business?
Costs are one of the first things you should consider when starting a taxi business. Unfortunately, the start-up costs to set up a taxi service can run high, which is …
Why Would a Business Owner Want to Sell Their Company?
Business owners do not tend to think about selling their company when getting set up, but this is something that needs to be planned for a smooth transition and to …
6 Ways to Raise Funding for Startups
Capital is the driving force for any startup to thrive. Without funding, businesses would fail to launch or pass the opportunity to catapult to higher levels. However, getting the funding …
Key Elements of Financial Analysis
You’ll need to fully understand how a company works to get the most out of your investment. One good way to know how a business is doing is to carry out a …
Bear Market – Definition
Definition of a bear market: a prolonged period of price falls in a financial market, such as the stock market. What is a bear market? A bear market is a …
Beta – Definition
Definition of beta (finance): Beta represents the correlation between movements in the price of a security, and price movements in the broader market for similar securities. What is beta? Beta …
Assets Under Management (AUM) – Definition
Definition of assets under management (AUM): The value of assets held by a fund manager, investment house or other financial institution on behalf of investors. What is assets under management? …
Acquisitions – Definition
Definition of acquisitions: Where a company or organisation gains control and ownership of a company, trade, or a collection of specific assets and liabilities. What is an acquisition? An acquisition …
Capitalism – Definition
Definition of capitalism: A political & economic model in which ownership of land & resources can be freely traded between individuals in a free market. What is capitalism? Capitalism is …
The Business Cycle – Definition
Definition of business cycle: The pattern of expansion and contraction in the economy which repeats roughly every 7 – 10 years. What is the business cycle? The business cycle is …
Capital Asset Pricing Model (CAPM) – Definition
Definition of Capital Asset Pricing Model (CAPM): A formulae for investor expected return, which states that a return is a function of the risk-free rate, the market return for taking …
Bull Market – Definition
Definition of a bull market: a prolonged period of optimism and price increases in the financial markets. What is a bull market? A bull market is a prolonged period of …
Overdraft – Definition
Definition of overdraft: A short term borrowing facilility, with a pre-agreed borrowing limit, which is repayable on demand What is an overdraft? An overdraft is a short term, unsecured bank …
Escrow – Definition
Definition of escrow: A neutral third party who stands between two transacting parties to provide assurance that both will honour their obligations. What does escrow mean? Not all third parties …
Equity – Definition
Definition of equity (finance): the element of a organisations total value which is attributable to its shareholders Definition of equity (accounting): the book value of assets minus liabilities. The net …
Deferred Consideration – Definition
Definition of deferred consideration: An element of a purchase price which is only settled in cash at much later date than the transaction. What does deferred consideration mean In the …
Debenture – Definition
Definition of debenture: A long term business loan which is ‘secured’ against the assets of the company. This is a UK definition. What does debenture mean In the UK, a …
Capital – Definition
Definition of capital (economics): Capital in economics represents the wealth of tangible assets and other resources which can be put to use to provide goods and services. Definition of capital …
What’s the Difference Between Level 1 and Level 2 Market Data?
This is a definition of Level 1 and Level 2 market data for our guide on how to research company share prices and company information, which is part of our …
Definition of a Real Estate Investment Trust
In my ultimate guide on how to invest in property, I list REITs as one of the popular methods. But what does REIT mean? What does REIT stand for, and …
Definition of a Unit Trust
Unit trust is a term you may see on the fact sheets of funds or collective investment vehicles. But what does unit trust mean? And what are the characteristics of …
Definition of Investment Trusts
Investment Trust or ‘Investment Trust Company’ is a term you may see when researching investment opportunities or collective investment vehicles. But what does Investment Trust mean? And what are the …
Definition of OEIC (Open Ended Investment Company)
OEIC is a term you may see on the fact sheets of funds or collective investment vehicles. But what does OEIC mean? And what are the characteristics of an OEIC? …
Definition of Junk Bond (Investor Perspective)
At first glance, the label ‘junk bond’ appears to look like a warning. “Stay away! This bond is a load of junk!” You might be surprised to hear that junk …
Definition of Corporate Bond (Investor Perspective)
Corporate bonds are a classic element of most simple investment portfolios. They tend to provide a superior return to savings accounts and government bonds, whilst containing less risk than investing …
Definition of Bond (Investor Perspective)
The definition of a bond as an investment is as follows: What is a bond? A bond is an agreement between a borrower and a lender. From an investing perspective, …