What is a Mortgage Broker? A mortgage broker refers to a middleman who manages the mortgage loan process for businesses or people. Basically, they connect mortgage lenders and borrowers without using their own funds to establish the connection. Mortgage brokers educate themselves on the financial standing of the borrower and attempt to connect them with…
What is the Morningstar Risk Rating? The Morningstar risk rating, also known as the Morningstar rating or star rating, is a rating assigned to publicly traded ETFs (exchange-traded funds) or mutual funds. Morningstar risk ratings are applied to various funds, including equity ETFs and specialized products like bond ETFs, to assess risk relative to fixed…
What is a Newly Industrialized Country (NIC)? The term newly industrialized country (NIC) refers to a subcategory of countries that are still developing but show greater economic growth compared to other developing countries. The NIC countries are continuously evolving and growing through industrialization and urbanization. Brief History and Background of NICs The NIC concept became…
What is Authorized Stock? Authorized stock or authorized shares refer to the maximum number of shares a corporation is legally permitted to issue according to its corporate bylaws. The product of the number of authorized shares and the face value per share is referred to as the authorized share capital. Authorized shares are different from…
What is the Australian Securities Exchange (ASX)? The Australian Securities Exchange (ASX) is one of the world’s leading financial market exchanges based in Sydney, Australia. As a fully functioning securities exchange, the ASX provides a number of services, such as listings, trading, clearing, settlements, technical and information services, and post-trade services. The Australian Securities Exchange…
What is Outsourcing? Outsourcing is a strategic decision by a company to reduce costs and increase efficiency by hiring another individual or company to perform tasks, provide services, or handle operations that were previously done by employees within the company. In other words, outsourcing is the practice of getting certain job functions done outside a…
What is a Staggered Board of Directors? A staggered board of directors, also known as a classified board, refers to a board that consists of different classes of directors. In a staggered board of directors, only one class is open to elections each term. It is different from a normal board of directors, where all…
What is Buy and Build? The buy and build strategy is when a company expands its operations by acquiring a platform company with developed expertise that it can then build out. When a business requires growth and expansion, there are several possibilities to consider. The company can develop its internal capabilities that will drive the…
What is Scalability? Scalability can fall into both financial and business strategy contexts. In both cases, it stands for the ability of an entity to withstand pressure as a result of growth, without being hindered by its resources or structure. Scalability continues to gain popularity, especially following the advancements in technology that ease communication to…
What is Product Diversification? Product diversification is a strategy employed by a company to increase profitability and achieve higher sales volume from new products. Diversification can occur at the business level or at the corporate level. Business-level product diversification – Expanding into a new segment of an industry that the company is already operating in….
