Guide to Equity vs. Fixed Income Both equity and fixed-income products are financial instruments that can help investors achieve their financial goals. Equity investments generally consist of stocks or stock funds, while fixed income securities generally consist of corporate or government bonds. Equity and fixed-income products have their respective risk-and-return profiles; investors will often choose…
What is Leveraged Finance? Leveraged finance is the use of an above-normal amount of debt, as opposed to equity or cash, to finance the purchase of investment assets. Leveraged finance is done with the goal of increasing an investment’s potential returns, assuming the investment increases in value. Private equity firms and leveraged buyout firms will employ…
What is SCQA? SCQA is an abbreviation that stands for Situation, Complication, Question, and Answer. The SCQA method is a framework used to structure information in a way that captures a reader’s attention. It is very important in business writing, as the reader is more likely to understand the text and agree with its message….
What is the Weighted Moving Average (WMA)? The weighted moving average (WMA) is a technical indicator that traders use to generate trade direction and make a buy or sell decision. It assigns greater weighting to recent data points and less weighting on past data points. The weighted moving average is calculated by multiplying each observation…
What is a Revolving Credit Facility? A revolving credit facility is a line of credit that is arranged between a bank and a business. It comes with an established maximum amount, and the business can access the funds at any time when needed. The other names for a revolving credit facility are operating line, bank…
What is Revenue Run Rate? Revenue Run Rate is an indicator of financial performance that takes a company’s current revenue in a certain period (a week, month, quarter, etc.) and converts it to an annual figure to get the full-year equivalent. This metric is often used by rapidly growing companies, as data that’s even a…
Project Finance – A Primer Project finance is the financial analysis of the complete life-cycle of a project. Typically, a cost-benefit analysis is used to determine if the economic benefits of a project are larger than the economic costs. The analysis is particularly important for long-term projects of growth CAPEX. The first step of the…
What are Public Securities? Public securities, also known as marketable securities, are debt or equity securities that are openly or easily traded in a market. In a previous article, the classification of such investment methods was further discussed. The securities are either equity or debt-based. An equity security is an investment based on the equity…
What is the Equity Capital Market? The equity capital market is a subset of the broader capital market, where financial institutions and companies interact to trade financial instruments and raise capital for companies. Equity capital markets are riskier than debt markets and, thus, also provide potentially higher returns. Instruments Traded in the Equity Capital Market…
