What are Foregone Earnings? Foregone earnings are potential earnings that could’ve been achieved but are absent due to charged fees, expenses, or lost time. An example is the investment costs incurred by an investor paying fees such as management fees for a mutual fund or exchange-traded fund (ETF) investment or commissions to a stock brokerage…
What is a Forward Premium? Forward premium occurs when the forward exchange rate is quoted higher than the spot exchange rate. The expectation of the market is that the domestic currency will be worth less in the future or will depreciate in value versus the foreign currency. To determine the forward premium, the difference between…
What is Social Networking? Social networking, in an online business context, is the usage of social media websites to connect with existing and potential customers to increase revenues and expand your business. The most frequently used social networking websites are Facebook, YouTube, and Twitter. Other popular social connection sites include LinkedIn, Instagram, Pinterest, and Snapchat….
What is a Subprime Loan? A subprime loan is a loan offered to individuals at an interest rate above prime, who do not qualify for conventional loans. Such individuals have low income, limited credit history, poor quality collateral, or poor credit. The subprime option is common in many different types of loans, including auto loans…
What is Social Responsibility? Social responsibility refers to the business practices of engaging in ethical behavior and in taking actions aimed at benefiting the society that the business operates in. Corporate social responsibility has become an increasingly important factor for companies to consider since the turn of the century. It is partly because millennials –…
What is Data Analytics? Data analytics is the science of analyzing raw datasets in order to derive a conclusion regarding the information they hold. It enables us to discover patterns in the raw data and draw valuable information from them. Data analytics processes and techniques may use applications incorporating machine learning algorithms, simulation, and automated…
What is Data Anonymization? Data anonymization refers to the method of preserving private or confidential information by deleting or encoding identifiers that link individuals to the stored data. It is done to protect the private activity of an individual or a corporation while preserving the credibility of the data collected and exchanged. Data anonymization is…
What is a Subordination Agreement? A Subordination Agreement is a narrow form of Intercreditor Agreement that focuses on the priority of two or more creditors’ debts and claims concerning a borrower with multiple loans and common security interest. It is also known as a Priority Agreement. The contract governs the lien position among creditors with…
What is a Stockbroker? A stockbroker is a regulated representative of the financial market who enables the buying and selling of securities on behalf of financial institutions, investor clients, and firms. A stockbroker is also called a registered representative or a broker. The trading or purchase or sale of stocks on the national stock exchanges…
What is Historical Cost? In accounting, the historical cost of an asset refers to its purchase price or its original monetary value. Based on the historical cost principle, the transactions of a business tend to be recorded at their historical costs. The concept is in conjunction with the cost principle, which emphasizes that assets, equity…
