What is Equity Financing? Equity financing refers to the sale of company shares in order to raise capital. Investors who purchase shares also acquire ownership rights in the company. Equity financing can refer to the sale of all equity instruments, such as common stock, preferred shares, and share warrants. Equity financing is especially important during…
What is the Dotcom Bubble? The dotcom bubble is a stock market bubble that was caused by speculation in dotcom or internet-based businesses from 1995 to 2000. The companies were largely those with a “.com” domain on their internet address. The dotcom bubble’s origins can be traced to the launch of the World Wide Web…
What is Double Taxation? Double taxation is a situation associated with how corporate and individual income is taxed and is, therefore, susceptible to being taxed twice. Categories of Double Taxation 1. Corporate Double Taxation It is a situation in which corporate earnings are taxed twice at two different levels but include the same income. A…
What is Divestment? Divestment is the sale of an existing business or an asset class that doesn’t perform or meet the expectations of the company or a country. Divestment is also referred to as divestiture. Reasons for Divestment Divestment is a difficult decision for a business. However, there are many reasons why…
What is Dumping? Dumping in the financial world occurs when a company or a country exports its products at a price lower than its domestic price. Exporters dump to compete with the producers and sellers in the importing country. How Dumping Takes Place It may seem that the dumping company may lose a lot of…
Who is an Early Adopter? An early adopter is one who tries new products before most other consumers. Early adopters are more common with technology products. They provide feedback to the vendor and help them to refine the product features, design, distribution, and support. Early adoption can also be viewed as a form of testing…
What is Deregulation? Deregulation is the removal or reduction of government regulations in a specific industry. The goals are to allow industries to operate businesses more freely, make decisions efficiently, and remove corporate restrictions. Overall, the main objective is to remove barriers to competition so that a particular industry can compete in the international market…
What is Depreciation Recapture? Depreciation recapture is a procedure by the Internal Revenue Service (IRS) in the U.S. to collect taxes on the sale of property that’s been depreciated. The property must have been previously used to offset the owner’s ordinary income due to depreciation. Therefore, when you file taxes, the gain from the sale…
What is a Depositary Receipt? A depositary receipt is a negotiable instrument issued by a bank to represent shares in a foreign public company, which allows investors to trade in the global markets. Understanding Depositary Receipts Depositary receipts allow investors to invest in companies in foreign countries while trading in a local stock…
