What is Mothballing? As it relates to business, mothballing is the practice of taking certain assets, equipment, and/or production facilities out of operation. The equipment and facilities should still be effective operationally, meaning they aren’t being deactivated or taken out of use because they no longer function properly. The primary purpose of mothballing is preservation…
What is a Variable-Rate Certificate of Deposit? A variable-rate certificate of deposit (CD) is a financial product that is offered by commercial bank institutions and credit unions that allows customers to deposit and save their money for a fixed period of time with varying interest rates. How Variable-Rate CDs Work Variable-rate certificates of…
What is a Non-Traded REIT? A non-traded REIT refers to a real estate investment trust (REIT) that is not listed and traded on a public exchange. Non-traded REITs allow investors to access diversified real estate investments with little capital requirements and added taxation benefits. Real Estate Investment Trust (REIT) Explained A real estate investment trust…
What is a Money Market Account (MMA)? A money market account (MMA) is a type of savings account that features the traits of a checking account – namely, it comes with checks and/or a debit card and the ability to complete a few transactions monthly without incurring bank fees. The Federal Reserve, however, still classifies…
What are Net Sales? Net sales are the total revenue generated by a company, excluding any sales returns, allowances, and discounts. It is a very important figure and is used by analysts when making decisions about the business or analyzing a company’s top line growth. The formula for net sales is demonstrated in the image…
What is Net Volume? Net volume is used to indicate the difference between a security’s uptick volume and downtick volume. Uptick volume is the volume of a company’s shares that are traded when the stock price is rising. Similarly, downtick volume is the volume of shares that are traded when the stock price is falling….
What is a Virtual Team? A virtual team, also known as a geographically dispersed team or a remote team, is a group of people who interact through electronic communications. Members of a virtual team are usually located in different geographical regions. Since communication is not in-person, trust and good communication are crucial to the success…
What is a Personal Financial Statement? A personal financial statement is a document, or set of documents, that outlines an individual’s financial position at a given point in time. It is usually composed of two sections – a balance sheet section and an income flow section. Although an individual can use more complex personal financial…
What is a League Table? A League Table is a list of investment bankers that highlights their rankings in the deal-making industry. Popular services provided by investment bankers include underwriting, mergers and acquisitions (M&A), and financial and legal advisory services. A league table can be ranked according to several metrics, such as Deal Value, Deal…
What are the 5 P’s of Marketing? The 5 P’s of Marketing – Product, Price, Promotion, Place, and People – are key marketing elements used to position a business strategically. The 5 P’s of Marketing, also known as the marketing mix, are variables that managers and owners control to satisfy customers in their target market,…
