Archives: Resources

Demand Draft

What is a Demand Draft? A demand draft, also called a remotely created check (RCC), is a negotiable instrument to transfer funds from one bank to another. It is issued by a bank to a client (drawer) in order to direct a different bank or another branch of the same bank (drawee) to pay the…

Continue reading

Distribution Channels: The Efficient Flow of Goods and Services

The best products only succeed when they reach their customers efficiently. Smart distribution strategy shapes both business operations and market performance, giving you the tools to drive company growth. Whether you’re analyzing operations, managing teams, or building business knowledge, your expertise in distribution channel strategy directly impacts market success. At CFI, we teach you how…

Continue reading

EBIT/EV Multiple

What is EBIT/EV Multiple? EBIT/EV Multiple is a financial ratio that is used for measuring the earnings yield of a firm. Investors and market analysts can use the EBIT/EV multiple to compare the earnings yield of companies having different tax rates and debt levels.     Investors look for higher values of EBIT/EV multiple, as…

Continue reading

Earnings Power Value

What is Earnings Power Value? Earnings power value is a method of valuing the stocks of a company, assuming that the current earnings are sustainable, and there is no future growth.     It means that earnings power value assesses the stocks’ value of a company with an assumption that it will continue to earn…

Continue reading

Easement in Gross

What is an Easement in Gross? An easement in gross is a right allowing an individual to legally use a property owned by someone else. It is valid until the legal owner lives in or holds the property. An individual owning a property can legally allow others to make use of the property as per…

Continue reading

Mean Reversion

What is Mean Reversion? Mean reversion is a theory implying that asset prices and historical returns gradually move towards the long-term mean, which can be based on the economy, industry, or average return within a set of data. The greater the deviation from their mean, the higher probability that the next movement of asset prices…

Continue reading

Nonconforming Mortgage

What is a Nonconforming Mortgage? A nonconforming mortgage is a loan for a home that does not follow government-sponsored enterprise (GSE) guidelines. GSE guidelines tend to include maximum loan amounts, downpayment requirements, credit requirements, and more. As the loans do not follow the above requirements and are more difficult to sell, they tend to be…

Continue reading

Voting Trust Certificate

What is a Voting Trust Certificate? A voting trust certificate is a document used to give temporary voting control over a corporation to one or several individuals. It is issued to a shareholder and represents the normal rights of any other stockholder, such as receiving quarterly dividends in exchange for their common shares. The only…

Continue reading

Earnings Report

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…

Continue reading

Real Estate Owned (REO)

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…

Continue reading
0 search results for ‘