A private investment in public equity (PIPE) is a type of financing in which a private investor purchases shares of a public company through a direct placement, usually at a discount to the current market price. PIPE transactions are typically used by small- to mid-cap companies that are seeking alternative sources of capital and are … Read more
What Is LIBOR? LIBOR is the London Interbank Offered Rate, and it’s a key metric used in the financial world. It’s used to price everything from loans to derivatives, and it’s important to understand how it works. Is LIBOR rate still used? The London Interbank Offered Rate (LIBOR) is a daily reference rate based on … Read more
The specific identification inventory valuation method is an inventory valuation method that uses the specific identification of each unit of inventory to determine its cost. This means that the cost of each unit of inventory is tracked individually, and the cost of each unit is assigned to the unit when it is sold. This method … Read more
Levered free cash flow (LFCF) is a measure of a company’s ability to generate cash flow that is available to its shareholders after accounting for its debt obligations. The levered free cash flow figure is calculated by taking a company’s operating cash flow and subtracting out its capital expenditures and interest payments. This figure represents … Read more
A defunct definition is a term used to describe a company or organization that is no longer in operation. This can happen for a variety of reasons, such as bankruptcy, liquidation, or simply ceasing to exist. When a company is defunct, its assets are typically sold off in order to pay off creditors. Any remaining … Read more
Receive versus payment (RVP) is a method of securities settlement in which securities are delivered to the buyer on the same day that payment is received from the seller. This method of settlement is used in many parts of the world, including the United States. RVP is considered to be a safer and more efficient … Read more
Appropriated retained earnings are those amounts of a company’s earnings that are specifically set aside for a specific purpose. The purpose may be to fund future growth, to pay down debt, or to provide for other specific needs of the business. Appropriated retained earnings are not available to shareholders as dividends. Are appropriated retained earnings … Read more
The Risk-Based Capital Requirement is a regulation imposed by the US government on banks and other financial institutions in order to protect depositors and the banking system as a whole. This regulation requires banks to maintain a certain level of capital in relation to their assets, with the goal being to ensure that banks have … Read more
Make to Stock vs. Make to Order: Advantages and Disadvantages What is make to order strategy with example? A make to order strategy is when a company manufactures a product only after it has received an order from a customer. This is in contrast to a make to stock strategy, where products are manufactured in … Read more
The adjusted net asset method is a valuation technique that estimates the value of a company by adjusting the book value of its assets to reflect their true market value. The adjusted net assets are then divided by the number of shares outstanding to arrive at a per share value. The adjusted net asset method … Read more
