When a business is looking for private equity or venture capital investment, the first step is to generate a deal flow. Deal flow refers to a stream of potential investment opportunities that a business can choose from. The process of generating deal flow begins with identifying businesses that fit the investment criteria of the private … Read more
A reservation of rights letter is a formal notice from an insurance company to a policyholder that, while the company will continue to provide coverage under the policy, it reserves the right to deny coverage for any claims that may arise from the policy. The letter may also state that the company will not be … Read more
A hedging transaction is an investment that is made in order to offset or protect against potential losses in another investment. In other words, a hedger is looking to reduce their risk in an investment by making another investment that will offset any potential losses. For example, let’s say that you are invested in a … Read more
Tort Law: What It Is and How It Works Tort law is a branch of law that deals with civil wrongs and damages. It can be divided into three main categories: intentional torts, negligence, and strict liability. What is another word for tort? The word “tort” is derived from the Latin word for “wrong.” A … Read more
An office audit is defined as an examination of an organization’s financial statements and records by an external auditor. The purpose of an office audit is to ensure that the organization is complying with generally accepted accounting principles and financial reporting standards. What is an audit in government? An audit in government is an independent … Read more
Footprint charts are a type of chart that shows the price action of a security or asset, along with the volume traded at each price level. This provides a more detailed view of price action than a traditional candlestick or bar chart, and can be useful for identifying buying and selling pressure, as well as … Read more
The Dividend Irrelevance Theory holds that a firm’s dividend policy does not affect the firm’s value or the shareholders’ wealth. In other words, the theory states that whether a firm pays dividends or not, and how much it pays, is irrelevant to the shareholders. The theory is based on the idea that shareholders can always … Read more
Expiration dates are the dates on which a product’s efficacy or usefulness expires. The term is most often used in relation to food and medical products, but can be applied to other consumable items as well. Expiration dates are typically stamped on a product’s packaging, and indicate how long the product can be used before … Read more
An Irrevocable Letter of Credit (ILOC) is a letter of credit that cannot be changed or canceled by the issuing bank without the approval of all parties involved. Once an ILOC is issued, the issuing bank is obligated to pay the beneficiary the specified amount of money, as long as the beneficiary meets the conditions … Read more
Ancillary revenue is income derived from sources that are not directly related to the company’s primary business activities. It is often generated by selling products or services that are complementary to the company’s main offerings. For example, a hotel might generate ancillary revenue by selling tickets to local attractions, renting out meeting space, or providing … Read more
