What is the National Securities Clearing Corporation (NSCC)? The National Securities Clearing Corporation (NSCC) provides risk management, settlement, and clearing services to the U.S securities exchange market. It acts as a central clearing counterparty (CCP) for trade in equities, foreign exchange, corporate debt, and other investments in the U.S. market. Founded as a…
What is a Vocational Degree? A vocational degree is a certificate from an academic institution that is awarded to students who have completed degree requirements for a specific field or trade. Vocational degrees are different than traditional degree programs, such as a bachelor’s degrees or master’s degrees. The former takes less time than the latter…
What is an Asset Management Company (AMC)? An asset management company (AMC) is a firm that invests a pooled fund of capital on behalf of its clients. The capital is used to fund different investments in various asset classes. Asset management companies are commonly referred to as money managers or money management firms as well….
What is Expected Value? Expected value (also known as EV, expectation, average, or mean value) is a long-run average value of random variables. It also indicates the probability-weighted average of all possible values. Expected value is a commonly used financial concept. In finance, it indicates the anticipated value of an investment in the future. By determining…
What is Net Current Asset Value Per Share (NCAVPS)? Net Current Asset Value Per Share, or NCAVPS for short, is a financial metric for evaluating the attractiveness of a stock. It is a term pioneered by American economist, investor, and professor, Benjamin Graham, who is widely considered the “Father of Value Investing.” Therefore, NCAVPS is…
What is Net Change? Net change is the difference between the closing price of a prior trading period and the closing price of the current trading period for a financial security. Net change is generally used for stock prices, bond prices, mutual funds, derivative products, and other tradeable securities. The net change usually refers to…
What is Central Tendency? Central tendency is a descriptive summary of a dataset through a single value that reflects the center of the data distribution. Along with the variability (dispersion) of a dataset, central tendency is a branch of descriptive statistics. The central tendency is one of the most quintessential concepts in statistics. Although it…
What is the Average Age of Inventory? The average age of inventory represents the average number of days that pass before a company sells its inventory balance. It is an important working capital efficiency metric that is also referred to as days’ inventory on hand (DOH). How to Calculate the Average Age of Inventory The…
