What are Discontinued Operations? Discontinued operations is a term used in accounting to refer to parts of a company’s business that have been terminated and are no longer operational. In accounting, discontinued operations are listed separately on financial statements from continuing operations. Reasons for Discontinued Operations Parts of a company’s business or product line will…
What is a Descending Triangle? A descending triangle refers to a bearish chart pattern used in technical analysis that is characterized by a descending upper trendline and a second, flatter horizontal trendline, which is lower than the first. Chart Patterns: The Basics Behind Descending Triangles Descending triangles, along with terms such as ascending triangles, head-and-shoulders,…
What is a Domestic Corporation? A domestic corporation refers to a company that is incorporated in and conducts business affairs in its own country. Domestic corporations are often compared with and contrasted to foreign corporations, which is particularly significant when considering corporate taxation rates. What is a Corporation? A corporation is an organization authorized by…
Building Your Personal Development Plan In order for you to be happy in your job, you need a personal development plan. Of course, your team members are no different; everyone wants to know that they’re making progress in their career. They need to know they’re working from a plan; that there’s a goal they’re working toward,…
What is Dematerialization? In finance, dematerialization refers to the transition from physical paper-based stock certificates to electronic bookkeeping. Historical Background on Stock Certificates and Dematerialization Paper stock certificates were popular in past centuries as a method of providing shareholders with tangible reminders of their ownership in companies, and as such, they were often ornately engraved…
What is an Aggressive Investment Strategy? An aggressive investment strategy is a high-risk, high-reward approach to investing. Such a kind of strategy is appropriate for younger investors or those with higher risk tolerance. The focus of aggressive investing is capital appreciation instead of capital preservation or generating regular cash flows. A standard example of an…
What is the Asian Development Bank (ADB)? The Asian Development Bank (ADB) is a regional development bank headquartered in Manila, Philippines. The bank was set up in 1966 under the leadership of Japan as one of the first industrialized states in Asia. The ADB finances development projects in its member states across Asia. As of…
What Does “First World” Mean? The modern definition of “first world” is used to classify countries that are highly industrialized and with advanced economies. First-world countries include the United States, Canada, Japan, and Western European countries. Historical Definition of “First World” The use of the term “first world” initially arose during the Cold War and…
What is Underlying Profit? Underlying profit is an internal profit calculation that a company uses as it more accurately portrays the earnings of the business than a standard accounting metric such as net profit. A company may then elect to report the underlying profit figure in the notes accompanying their official financial statements as additional…
What is an Underlying Security? Underlying security is a term in investing that denotes the negotiable financial instrument upon which a financial derivative, such as an option on a stock – is based. Therefore, the value of the underlying security also determines the value of its financial derivative. A financial derivative is defined as a…
