What is Negative Goodwill? The negative goodwill (NGW) amount, also known as the “bargain purchase” amount, is the difference between the purchase price paid for an asset and its actual fair market value. Negative goodwill is an accounting principle that occurs when the price paid for an asset is lower than its value in the…
What is the National Registration Database (NRD)? The National Registration Database (NRD) is a web-based registration system for individuals and companies whose businesses include trading, advising, or underwriting of financial securities. The NRD allows such businesses to register online by filling forms electronically and is only accessible to authorized personnel. History of the…
What is the National Futures Association (NFA)? The National Futures Association (NFA) is a self-regulatory organization that regulates the U.S. derivatives industry and provides investors with protection by ensuring that member firms employ industry best practices and meet regulatory requirements. The NFA is an independent, non-profit organization and it is funded by membership and assessment…
What is an Assumable Mortgage? An assumable mortgage is a mortgage that can be transferred from the current owner of the property to the buyer, with the terms that were agreed upon originally. In other words, the buyer is able to “assume” the owner’s mortgage, eliminating the need for raising funds through new debt. How…
What is Caveat Emptor? Caveat emptor is a Latin phrase that is translated as “let the buyer beware.” The phrase describes the concept in contract law that places the burden of due diligence on the buyer of a good or service. Caveat emptor is a fundamental principle in commerce and contractual relationships between a buyer…
What is Appreciation? Appreciation is an increase in the value of an asset over time. The term is widely used in several disciplines, including economics, finance, and accounting. In accounting, appreciation refers to the positive adjustment made to the initially booked value of an asset. Moreover, accountants determined additional criteria to define the concept: The…
What is Lead Time? Lead time refers to the time taken – or allowed for – between the start and completion of an operation or project. The term is commonly used in supply chain management, project management, and manufacturing fields. Longer lead times often result in inefficiencies and wastage of resources, and companies should review…
What are the Top Undergraduate Case Competitions? Undergraduate case competitions require students to take the information provided in a case study and produce some type of analysis, which they must then present or submit for scoring. Case competitions exist for a wide range of fields, including business, science (physics, chemistry, etc.), math, humanities, and more….
What is the Net Interest Rate Differential (NIRD)? Net interest rate differential (NIRD) occurs when there is a difference in interest rates between two countries or regions. It normally takes place in the international foreign exchange markets when a person takes a long position in one currency and a short position in another currency. The…
What is the Morningstar Sustainability Rating? The Morningstar Sustainability Rating is a consistent and objective way for investors to evaluate mutual funds and exchange-traded funds (ETFs) based on their environmental, social, and corporate governance (ESG) impact. Implemented in 2016, the Morningstar Sustainability Rating is a rating out of five globes, instead of stars. It indicates…
