The conversion price is the price at which a convertible security can be converted into shares of the underlying common stock. The conversion price is usually stated in the terms of the convertible security. For example, a convertible bond with a conversion price of $30 means that each bond can be converted into 30 shares … Read more
What are Stakeholders? A stakeholder is an individual or group that has an interest in an organization or project. A stakeholder can be an employee, supplier, customer, shareholder, or member of the community. Who are stakeholders in simple terms? In business and investing, the term stakeholder refers to anyone who has an interest in the … Read more
When you invest in a company, you are buying shares of that company. Your shares represent a piece of ownership in the company, and you are known as a shareholder. The number of shares you own is your stake in the company, and is known as your holdings. If you own 100 shares of a … Read more
Top-down investing is an investment strategy that begins with an analysis of the overall economic and political environment, before moving on to sector and company analysis. The aim of this approach is to identify the most attractive sectors and companies within those sectors, in order to generate the highest returns. This strategy contrasts with bottom-up … Read more
The full value definition is the principle that the value of an investment should be measured by its total potential return, rather than its current market price. This approach takes into account all of the potential sources of return, including price appreciation, dividends, and interest income. Advocates of the full value definition argue that this … Read more
Post-money valuation is the total value of a company’s equity after it has raised money in a funding round. This value includes the value of the company’s stock before the funding round, plus the value of the new investment. For example, let’s say a company has a pre-money valuation of $10 million and raises $5 … Read more
What Guarantees Does Delivery Versus Payment Offer? Which of the following is a benefit of a DVP RVP account? A DVP RVP account is a “Delivery Versus Payment, Registered Versus Payment” account, and it is used in securities transactions to ensure that the buyer receives the securities they have purchased and the seller receives payment … Read more
The free credit balance is the difference between the credit limit and the balance. The credit limit is the maximum amount of credit that can be extended to a borrower, and the balance is the amount of credit that has been used. For example, if a credit card has a credit limit of $1,000 and … Read more
A laggard is a company or an investment that significantly underperforms its peers. Laggards typically have poor fundamentals and are often late to embrace new technology or other industry trends. As a result, laggards tend to be less profitable and have higher risks than their more successful peers. Laggards are often behind the curve in … Read more
The term “earning assets” refers to any asset that has the potential to generate income. The most common types of earning assets are stocks, bonds, and other investments. However, any asset that has the potential to generate income can be considered an earning asset. Earning assets are important because they can provide a source of … Read more
