What is an Earnings Report? An earnings report is an official financial document issued by a public company that shows expenses, earnings, and overall profit of the company for a certain period. The earnings report can also be called the income statement or profit and loss (P&L) statement. Investors can analyze the earnings report of…
What is Real Estate Owned (REO)? Real estate owned (REO) is a bank-owned property that failed to sell at a foreclosure auction. When homeowners fail to pay their mortgages, they can either sell their property immediately and offer the sale proceeds to the bank or give it up to the bank for foreclosure. Foreclosure refers…
What is Bull vs. Bear? The term “bull vs. bear” denotes the ensuing trends in stock markets – whether they are appreciating or depreciating in value – and what is the investors’ outlook about the market in general. A bull market indicates a sustained increase in price, whereas a bear market denotes sustained periods of…
What is Power Query? Power Query is a tool used to manipulate data and is commonly used to transform data for business intelligence projects. High quality analysis relies on well-organized data that is free from errors and that draws data from a single source of truth. While many analysts spend hours of time manipulating data,…
What is Extrinsic Value? Extrinsic value of an option is calculated by taking the difference between the market price of an option (also called the premium) and its intrinsic price – the value of an options contract in relation to the underlying at expiration or if exercised. In other words, it is determined by factors…
What is Sharia Law? Sharia law is a religious law that lays down governing principles for spiritual, mental, and physical behavior that must be followed by Muslims. Regarded as God’s command for Muslims, Sharia law is essentially Islam’s legal system. The four primary sources of Sharia Law are: The Quran – The Holy Book conveys…
What is Translation Exposure? Translation exposure is a kind of accounting risk that arises due to fluctuations in currency exchange rates. Understanding Translation Exposure The assets, liabilities, equities, and earnings of a subsidiary of a multinational company are usually denominated in the currency of the country it is situated in. If the parent company is…
What is Stablecoin? Stablecoin refers to a type of cryptocurrencies that tries to tackle price fluctuations to maintain a more stable price. The way of doing this is to link the stablecoin’s market value to some external reference, most commonly a fiat currency like the USD, although some stablecoins are linked to commodities, such as…
What is Standard Error? Standard error is a mathematical tool used in statistics to measure variability. It enables one to arrive at an estimation of what the standard deviation of a given sample is. It is commonly known by its abbreviated form – SE. Standard error is used to estimate the efficiency, accuracy, and consistency…
What is the Eclectic Paradigm? Based on the internalization theory of British economist J.H Dunning, the eclectic paradigm is an economic and business method for analyzing the attractiveness of making a foreign direct investment (FDI). The eclectic paradigm model follows the OLI framework. The framework follows three tiers – ownership, location, and internalization. The eclectic…
