What is a Stock Split? Publicly-traded companies all have a given number of outstanding shares of stock in their company that have been purchased by and issued to investors. A stock split is a decision by the company to increase the number of outstanding shares by a specificied multiple. More About Stock Splits When a company…
What is a Shareholder? A shareholder can be a person, company, or organization that holds stock(s) in a given company. A shareholder must own a minimum of one share in a company’s stock or mutual fund to make them a partial owner. Shareholders typically receive declared dividends if the company does well and succeeds. Also…
What is Capital Gains Tax? Capital gains tax is a tax imposed on capital gains or the profits that an individual makes from selling assets. The tax is only imposed once the asset has been converted into cash, and not when it’s still in the hands of an investor. For example, assume that an individual…
What is Asset Management? Understanding asset management starts with defining the word “asset.” In the broadest sense, an asset is anything that delivers value to its owner and the stakeholder(s) it serves. Stocks, bonds, residential properties, and commercial office buildings are all examples of assets. In finance, asset management describes managing money on clients’ behalf….
What is the Management Expense Ratio (MER)? The management expense ratio (MER) – also referred to simply as the expense ratio – is the fee that must be paid by shareholders of a mutual fund or exchange-traded fund (ETF). The MER goes toward the total expenses used to run such funds. The fee is not transferred…
What is Personal Finance? Personal finance is the process of planning and managing personal financial activities such as income generation, spending, saving, investing, and protection. The process of managing one’s personal finances can be summarized in a budget or financial plan. This guide will analyze the most common and important aspects of individual financial management….
What is Financial Analysis? Financial analysis involves using financial data to assess a company’s performance and make recommendations about how it can improve going forward. Financial analysts primarily carry out their work in Excel, using spreadsheets to analyze historical data and make projections of how they think the company will perform in the future. This guide will cover…
What is Regulatory Risk? Regulatory risk is the risk that a change in regulations or legislation will affect a security, company, or industry. Companies must abide by regulations set by governing bodies that oversee their industry. Therefore, any change in regulations can cause a rippling effect across an industry. Regulations can increase costs of operations,…
