What are the Most Important Fixed Income Terms? Welcome to CFI’s guide to the most important fixed income terms. For a complete understanding of bonds and fixed-income securities, check out our Fixed Income Fundamentals course. Annuity: An annuity is a series of payments in equal time periods, guaranteed for a fixed number of years. Annuity…
What is a Subsidiary? A subsidiary (sub) is a business entity or corporation that is fully owned or partially controlled by another company, termed as the parent, or holding, company. Ownership is determined by the percentage of shares held by the parent company, and that ownership stake must be at least 51%. What are the…
What is Simple Interest? Simple interest is a calculation of interest that doesn’t take into account the effect of compounding. In many cases, interest compounds with each designated period of a loan, but in the case of simple interest, it does not. The calculation of simple interest is equal to the principal amount multiplied by…
What is a Vendor? A vendor refers to an individual or company that sells something to another individual or entity. Vendors can be utilized at different spots in the supply chain, and with multiple occurrences throughout. The term vendor can encompass retailers or suppliers broadly with what is often a component in a larger product….
What is the Vacancy Rate? The vacancy rate is how many available dwellings are on the market for rent within a specified geographic region. The number is presented as a percentage and is often defined within a city, town, province, or state. Vacancy rates can also apply to commercial/office space (storefronts or high-rises) and reflect…
What is Voodoo Economics? Voodoo economics is the term George H.W. Bush used to describe U.S. President Ronald Reagan’s economic policies before becoming his vice president. Bush invented the term, which was deemed derogatory, in 1980. The former vice president was of the opinion that Reagan’s supply-side policies were not only going to fall short…
What is a Vulture Capitalist? A vulture capitalist is a type of investor that scavenges off distressed companies for profit, like a vulture scavenges off the dead bodies of animals. (Vulture capitalists typically receive criticism because their tactics involve the targeting of individuals and/or companies who are already experiencing financial difficulties!) Hedge funds and private…
What is Inventory Turnover? Inventory turnover, or the inventory turnover ratio, is the number of times a business sells and replaces its stock of goods during a given period. It considers the cost of goods sold, relative to its average inventory for a year or for any set period of time. A high inventory turnover generally means…
