The Rate of Return (ROR) is the gain or loss of an investment over a period of time copmared to the initial cost of the investment expressed as a percentage.| Corporate Finance Institute
Public securities, or marketable securities, are investments that are openly or easily traded in a market. The securities are either equity or debt-based.| Corporate Finance Institute
A non-qualifying investment is a type of investment that can never be subject to any tax benefits. Tax benefits include deductions, exemptions, and credits| Corporate Finance Institute
LEAPS (Long-Term Equity Anticipation Security) are options for terms that are longer than those of the most common options on equities and indices.| Corporate Finance Institute
Marketable securities are unrestricted short-term financial instruments that are issued either for equity securities or debt securities of a publicly listed company.| Corporate Finance Institute
Junk Bonds, also known as high-yield bonds, are bonds that are rated below investment grade by the big three rating agencies| Corporate Finance Institute
Fixed income securities are a broad class of very liquid and highly traded debt instruments, the most common of which is a bond.| Corporate Finance Institute
A corporation is a legal entity created by individuals, stockholders, or shareholders, with the purpose of operating for profit. Corporations are allowed to enter| Corporate Finance Institute
Speculation is the buying of an asset or financial instrument with the hope that the price of the asset or financial instrument will increase in the future.| Corporate Finance Institute
Machine learning in finance is now considered a key aspect of several financial services and applications, including managing assets, evaluating levels of risk| Corporate Finance Institute
Currency refers to money, which is used as a medium of exchange for goods and services in an economy.| Corporate Finance Institute
Barriers to entry are the obstacles or hindrances that make it difficult for new companies to enter a given market. These may include| Corporate Finance Institute
A security is a financial instrument, typically any financial asset that can be traded. The nature of what can and can’t be called a security generally depends on| Corporate Finance Institute
Interest income is the amount paid to an entity for lending its money or letting another entity use its funds.| Corporate Finance Institute
Unlevered Beta (Asset Beta) is the volatility of returns for a business, without considering its financial leverage. It only takes into account its assets.| Corporate Finance Institute
The market risk premium is the additional return an investor expects from holding a risky market portfolio instead of risk-free assets.| Corporate Finance Institute
Equity risk premium is the difference between returns on equity/individual stock and the risk-free rate of return.| Corporate Finance Institute
The expected return on an investment is the expected value of the probability distribution of possible returns it can provide to investors.| Corporate Finance Institute
Accounts Receivable (AR) represents the credit sales of a business, which have not yet been collected from its customers. Companies allow| Corporate Finance Institute
Interest expense arises out of a company that finances through debt or capital leases. Interest is found in the income statement, but can also| Corporate Finance Institute
The Income Statement is one of a company's core financial statements that shows its profit and loss over a period of time.| Corporate Finance Institute
Risk tolerance refers to the amount of loss an investor is prepared to handle while making an investment decision. Several factors determine the level of risk| Corporate Finance Institute
Investment horizon is a term used to identify the length of time an investor is aiming to maintain their portfolio before selling their securities for a profit.| Corporate Finance Institute
Bonds are fixed-income securities that are issued by corporations and governments to raise capital. The bond issuer borrows capital from the bondholder and makes| Corporate Finance Institute
An initial coin offering (ICO) is a type of capital-raising activity in the cryptocurrency and blockchain environment.| Corporate Finance Institute
Distributed ledgers are the databases shared across a network and spread over various geographical locations. A ledger is a collection of| Corporate Finance Institute
A cryptocurrency wallet refers to a physical medium, device, service, or application that maintains private and/or public passwords for crypto transactions.| Corporate Finance Institute
Libra was a failed cryptocurrency created by Facebook. It was rebranded as Diem in 2020 and eventually wound down in 2022.| Corporate Finance Institute
SG&A includes all non-production expenses incurred by a company in any given period. It includes expenses such as rent, advertising, marketing| Corporate Finance Institute
IFRS Standards consist of a set of accounting rules that determine how transactions and other accounting events are required to be reported in financial statements.| Corporate Finance Institute
The first mover advantage refers to an advantage gained by a company that first introduces a product or service to the market. The first mover advantage| Corporate Finance Institute
Enterprise Value, or Firm Value, is the entire value of a firm equal to its equity value, plus net debt, plus any minority interest| Corporate Finance Institute
EBITDA or Earnings Before Interest, Tax, Depreciation, Amortization is a company's profits before any of these net deductions are made.| Corporate Finance Institute
The Capital Asset Pricing Model (CAPM) is a model that describes the relationship between expected return and risk of a security.| Corporate Finance Institute
Net Present Value (NPV) is the value of all future cash flows (positive and negative) over the entire life of an investment discounted to the present.| Corporate Finance Institute
A hurdle rate, or minimum acceptable rate of return (MARR), is the minimum required rate of return or target rate that investors expect to receive on an investment.| Corporate Finance Institute
Why use XIRR vs IRR. XIRR assigns specific dates to each individual cash flow making it more accurate than IRR when building a financial model in Excel.| Corporate Finance Institute
Explore cash equivalents, their examples, role in working capital and importance in financial modeling for accurate liquidity analysis and valuation.| Corporate Finance Institute
Virtual currency is a type of unregulated digital currency. It is not issued or controlled by a central bank. Examples of virtual currencies include Bitcoin| Corporate Finance Institute
Bitcoin mining refers to the process of digitally adding transaction records to the blockchain, which is a publicly distributed ledger.| Corporate Finance Institute
The McKinsey 7S Model refers to a tool that analyzes a company’s “organizational design.” The goal of the model is to depict how effectiveness can be| Corporate Finance Institute
With all the hype in cryptocurrencies, the question that many investors are asking themselves is whether cryptocurrencies are a good investment.| Corporate Finance Institute
Trading cryptocurrency differs from investing in cryptocurrencies because of the time horizon of the trade.| Corporate Finance Institute
Cryptocurrencies and digital assets can be bought in a few different ways, such as Centralized Crypto Exchanges, Decentralized Exchanges and Crypto Brokers.| Corporate Finance Institute
Distributed ledger technology refers to a digital system that records transactions related to assets. It usually comes with restrictions on its access and use..| Corporate Finance Institute
Customer acquisition cost (CAC) is the cost related to acquiring a new customer. In other words, CAC refers to the resources and costs| Corporate Finance Institute
A DCF model is a specific type of financial model used to value a business. The model is simply a forecast of a company’s unlevered free cash flow| Corporate Finance Institute