AIDA Model - Understand the Steps in the AIDA Model Hierarchy
The AIDA model, which stands for Attention, Interest, Desire, and Action model, is an advertising effect model that identifies the stages that an individual| Corporate Finance Institute
The AIDA model, which stands for Attention, Interest, Desire, and Action model, is an advertising effect model that identifies the stages that an individual| Corporate Finance Institute
Calculate the Internal Rate of Return (IRR) using our free calculator. Understand IRR with our definition and formula to assess investment profitability.| Corporate Finance Institute
Basis Points (BPS) are the commonly used metric to gauge changes in interest rates. A basis point is 1 hundredth of one percent.| Corporate Finance Institute
Return on Investment (ROI) is a performance measure used to evaluate the returns of an investment or compare efficiency of different investments.| Corporate Finance Institute
Return on Invested Capital (ROIC) is a profitability or performance measure of the return earned by those who provide capital, i.e., bondholders and stockholders.| Corporate Finance Institute
ROA Formula. Return on Assets (ROA) is a type of return on investment (ROI) metric that measures the profitability of a business in relation to its total assets.| Corporate Finance Institute
The treasury stock method is a way for companies to compute the number of additional shares that can possibly be created by un-exercised,| Corporate Finance Institute
Looking to become a certified credit analyst? Discover CFI's in-depth credit analyst training program. ✓ Start your certification journey now!| Corporate Finance Institute
The risk-free rate of return is the interest rate an investor can expect to earn on an investment that carries zero risk.| Corporate Finance Institute
The New York Stock Exchange (NYSE) is the largest securities exchange in the world, hosting 82% of the S&P 500, as well as 70 of the biggest| Corporate Finance Institute
Taxable income refers to any individual's or business’ compensation that is used to determine tax liability.| Corporate Finance Institute
The fair market value (of a good or service being exchanged) refers to the price at which both transacting parties agreed to independently.| Corporate Finance Institute
Time to further your career. Explore free derivatives resources and get instant access to flexible, on-demand training led by CFI's expert instructors.| Corporate Finance Institute
Trade order timing refers to the shelf-life of a specific trade order. The most common types of trade order timing are market orders, GTC orders,| Corporate Finance Institute
Over-the-counter (OTC) is the trading of securities between two counter-parties executed outside of formal exchanges and without the supervision of an exchange regulator.| Corporate Finance Institute
In investing, long and short positions represent directional bets by investors that a security will either go up (when long) or down (when short).| Corporate Finance Institute
This guide shows you step-by-step how to build comparable company analysis ("Comps") and includes a free template and many examples.| Corporate Finance Institute
The Federal Reserve is the central bank of the United States and is the financial authority behind the world’s largest free market economy.| Corporate Finance Institute
Someone who is risk averse has the characteristic or trait of preferring avoiding loss over making a gain.| Corporate Finance Institute
An institutional investor is a legal entity that accumulates funds to invest in various financial instruments and profit from the process.| Corporate Finance Institute
The cost of debt is the return that a company provides to its debtholders and creditors. Cost of debt is used in WACC calculations for valuation analysis.| Corporate Finance Institute
Net Working Capital (NWC) is the difference between a company's current assets (net of cash) and current liabilities (net of debt) on its balance sheet.| Corporate Finance Institute
Standard & Poor’s is an American financial intelligence company that operates as a division of S&P Global. S&P is a market leader in the| Corporate Finance Institute
A revolving debt (a revolver, sometimes known as a line of credit or LOC) does not feature fixed monthly payments.| Corporate Finance Institute
Return on Equity (ROE) is a measure of a company’s profitability that takes a company’s annual return (net income) divided by the value of its total shareholders' equity.| Corporate Finance Institute
Senior Debt is money owed by a company that has first claims on the company’s cash flows. It is more secure than any other debt, such as subordinated debt| Corporate Finance Institute
Par Value is the nominal or face value of a bond, or stock, or coupon as indicated on a bond or stock certificate. It is a static value| Corporate Finance Institute
A board of directors is a panel of people elected to represent shareholders. Every public company is required to install a board of directors.| Corporate Finance Institute
Bankruptcy is the legal status of a human or a non-human entity (a firm or a government agency) that is unable to repay its outstanding debts| Corporate Finance Institute
A subsidiary (sub) is a business entity or corporation that is fully owned or partially controlled by another company, termed as the parent, or holding, company.| Corporate Finance Institute
Stockholders Equity (also known as Shareholders Equity) is an account on a company's balance sheet that consists of share capital plus| Corporate Finance Institute
The main difference between a private vs public company is that the shares of a public company are traded on a stock exchange, while a private company's shares are not.| Corporate Finance Institute
Understand credit rating frameworks, scales, and their impact on bond pricing and risk. Strengthen your fixed‑income knowledge—explore now!| Corporate Finance Institute
An individual who owns stock in a company is called a shareholder and is eligible to claim part of the company’s residual assets and earnings.| Corporate Finance Institute
Stock investment strategies pertain to the different types of stock investing. These strategies are namely value, growth and index investing.| Corporate Finance Institute
If you’re going to actively trade stocks as a stock market investor, then you need to know how to read stock charts.| Corporate Finance Institute
What is Fintech? Learn about the fintech industry, financial technology innovations, and how they are transforming banking, payments, lending, and investing.| Corporate Finance Institute
A credit score is a number representative of an individual's financial and credit standing and ability to obtain financial assistance from lenders.| Corporate Finance Institute
VBA stands for Visual Basic for Applications. Excel VBA is Microsoft’s programming language for Microsoft Office programs, like Excel, Word, and PowerPoint.| Corporate Finance Institute
Many companies are now transitioning from Excel to Python, a high-level, general-purpose programming language created by Guido van Rossum.| Corporate Finance Institute
AI is a broad branch of computer science that is focused on a machine's capability to produce rational behavior from external inputs.| Corporate Finance Institute
Is business intelligence professional certification right for you? CFI's BIDA course is top-rated. ✓ Advance your career - Sign up today!| Corporate Finance Institute
Bartering is the act of trading one good or service for another without using a medium of exchange such as money. A bartering economy differs| Corporate Finance Institute
The Network Effect is a phenomenon where present users of a product or service benefit in some way when the product or service is adopted by additional users.| Corporate Finance Institute
Fiscal Policy refers to the budgetary policy of the government, which involves the government controlling its level of spending and tax rates| Corporate Finance Institute
The 10-year US Treasury Note is a debt obligation that is issued by the US Treasury Department and comes with a maturity of 10 years.| Corporate Finance Institute
An option is a derivative contract that gives the holder the right, but not the obligation, to buy or sell an asset by a certain date at a specified price.| Corporate Finance Institute
A futures contract is an agreement to buy or sell an underlying asset at a later date for a predetermined price.| Corporate Finance Institute
In this article, we provide a general overview of the key players and their respective roles in the capital markets.| Corporate Finance Institute
Trading mechanisms refer to the different methods by which assets are traded. The two main types are quote driven and order driven trading mechanisms.| Corporate Finance Institute
Discover what dividends are, how they work, and their impact on valuation. Learn about different types of dividends and explore real-world examples.| Corporate Finance Institute
The Annual Percentage Rate (APR) is the yearly rate of interest that an individual must pay on a loan or that they receive on a deposit account.| Corporate Finance Institute
This effective annual interest rate calculator helps you calculate the EAR given the nominal interest rate and number of compounding periods.| Corporate Finance Institute
Preferred shares (preferred stock, preference shares) are the class of stock ownership in a corporation that has a priority claim on the company’s assets over common| Corporate Finance Institute
Find out what it takes to become a successful budgeting and forecasting professional, from the skills you'll use to the compensation you can expect.| Corporate Finance Institute
The Chief Executive Officer (CEO) and the Chief Financial Officer (CFO) take on different but equally important responsibilities in an organization.| Corporate Finance Institute
Net Profit Margin is a financial ratio used to calculate the percentage of profit a company produces from its total revenue.| Corporate Finance Institute
The law of supply is a basic principle in economics that asserts that, assuming all else being constant, an increase in the price of goods| Corporate Finance Institute
A product is a tangible item that is put on the market for acquisition, attention, or consumption while a service is an intangible item, which arises from the| Corporate Finance Institute
The command economy is a system where the government plays the principal role in planning and regulating the country's goods and services.| Corporate Finance Institute
If you want a career in accounting, T Accounts may be your new best friend. The T Account is a visual representation of individual accounts| Corporate Finance Institute
The marginal cost formula represents the incremental costs incurred when producing additional units of a good or service. The marginal cost| Corporate Finance Institute
Absorption costing is a costing system that is used in valuing inventory. It not only includes the cost of materials and labor, but also both| Corporate Finance Institute
Learn the three most common valuation methodologies: comparable company valuation, precedent transaction valuation, and discounted cash flow valuation.| Corporate Finance Institute
Enroll in CFI’s Corporate Finance Fundamentals course for an introduction to key concepts in investment banking, private equity, FP&A, and more.| Corporate Finance Institute
Job order costing is used to allocate costs based on a specific job order. This guide provides the job order costing formula and how to calculate it.| Corporate Finance Institute
Activity-based costing is a more specific way of allocating overhead costs based on “activities” that actually contribute to overhead costs.| Corporate Finance Institute
Jump into the exciting world of trading. Explore our free resources and get instant access to flexible, on-demand training led by CFI's expert instructors.| Corporate Finance Institute
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
Navigate the world of financial planning and wealth management with expertise. Check out CFI's library of courses and take control of your financial well-being.| 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
Learn from CFI's library of Fixed Income courses and prepare for a successful career in capital markets, wealth management, and other in-demand finance fields.| 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 trading is the process of trading fixed-income securities over-the-counter in a market that offers low transaction costs.| 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
Bond pricing is the science of calculating a bond's issue price based on the coupon, par value, yield and term to maturity. Bond pricing allows investors| Corporate Finance Institute
There are different types of bond issuers. These bond issuers create bonds to borrow funds from bondholders, to be repaid at maturity.| Corporate Finance Institute
Find out what it takes to become a successful DCM banker, from the required skills you'll use regularly to the typical day and compensation you can expect.| 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
CFI's Investing for Beginners guide will teach you the basics of investing and how to get started. Learn about different strategies and techniques for trading| 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
We discuss the different methods of projecting income statement line items. Projecting income statement line items begins with sales revenue, then cost| Corporate Finance Institute
Sales revenue is income received from sales of goods or services. In accounting, the terms “sales” and “revenue” are often used interchangeably.| Corporate Finance Institute
Gross profit is the direct profit left over after deducting the cost of goods sold, or cost of sales, from sales revenue. It's used to calculate the gross profit margin.| Corporate Finance Institute
Earnings before tax, or pre-tax income, is the last subtotal found in the income statement before the net income line item. EBT is found| Corporate Finance Institute
This guide will outline how to get a job in investment banking using out top three tactics: networking and resume, interview prep, and technical skills| Corporate Finance Institute
Here are six tips on how to become a financial analyst with no experience| Corporate Finance Institute
Enroll to learn how to accurately read financial statements, understand a company’s financial strength, and make informed decisions.| Corporate Finance Institute
Looking to boost your finance career resources? CFI offers in-depth guides and tips to elevate your profession. ✓ Unlock success with us today.| Corporate Finance Institute
The three financial statements are the income statement, the balance sheet, and the statement of cash flows. See them explained in detail.| Corporate Finance Institute
Journal Entries are the building blocks of accounting, from reporting to auditing journal entries (which consist of Debits and Credits)| Corporate Finance Institute
Gross means the total or whole amount of something, whereas net means what remains from the whole after certain deductions are made. This guide will compare gross vs net| Corporate Finance Institute
