What is a Credit Analyst Description? Individuals seeking to join the credit industry look at a credit analyst description to find out if they are qualified for the job. A credit analyst is a credit professional specialized in financial risk analysis. Credit analysts are employed in commercial banks, credit card companies, and investment banks. The main…
What is Debt? Debt is the money borrowed by one party from another to serve a financial need that otherwise cannot be met outright. Many organizations use debt to procure goods and services that they can’t manage to pay for with cash. Under a debt agreement, the borrower obtains authorization to get whatever amount of…
What is an Activist Shareholder? An activist shareholder is a shareholder of a corporation who attempts to use his or her equity stake in a company to achieve certain goals. The main goal of activist shareholders is bringing change within or for the company. They intend to affect the behavior of a company by exercising…
What is Throughput? Throughput (also known as the flow rate) is a measure of a business process flow rate. Essentially, it measures the movements of inputs and outputs within the production process. It is an important metric in the operations management of a company. This variable primarily indicates the efficiency of operations that are vital to…
What is Mosaic Theory? The mosaic theory is an approach to financial security analysis that involves the analysis of a variety of resources, including public and non-public material and non-material information, to determine the underlying value of a security. The theory provides a more comprehensive and meticulous approach to the valuation of financial securities because…
What is an Alternative Investment? An alternative investment is an investment in assets different from cash, stocks, and bonds. Alternative investments can be investments in tangible assets such as precious metals or wine. In addition, they can be investments in financial assets such as private equity, distressed securities, and hedge funds. Generally, alternative investments tend…
What is the Goodwill to Assets Ratio? The goodwill to assets ratio measures the amount of goodwill a company has recorded on its books compared to its total assets. Therefore, the goodwill/assets ratio is used to determine what portion of a company’s assets are classified as intangible assets versus its tangible assets. What is Goodwill? Goodwill is…
What is a Stock Exchange? A stock exchange is a marketplace where securities, such as stocks and bonds, are bought and sold. Bonds are typically traded Over-the-Counter (OTC), but some corporate bonds can be traded on stock exchanges. Stock exchanges allow companies to raise capital and investors to make informed decisions using real-time price information. Exchanges can…
What is Forced Sale Value? A forced sale value is the estimate of the amount that a business would receive if it sold off its assets one piece at a time during an unforeseen or uncontrollable event. The appraiser assumes that the business needs to sell its assets within a short duration at an immediate…
