What are Office REITs? Office REITs are REITs that build, manage, and maintain office buildings, and they lease the offices to companies that need space to accommodate their employees. While there are companies that own the buildings where they operate from, most companies turn to office REITs that specialize in leasing office space in central…
What is a Lender? A lender is defined as a business or financial institution that extends credit to companies and individuals, with the expectation that the full amount of the loan will be repaid. The lender earns interest on the credit, which is charged at a specific percentage of the total amount of loan extended…
What is a Credit Analyst Cover Letter? A credit analyst cover letter is a letter of introduction that accompanies the resume, and it provides information on the applicant’s competencies and experience. The credit industry is highly competitive, and there are thousands of credit analyst job hunters for every credit analyst position that is advertised. In…
What is the Credit Analyst Career Path? For professionals looking to take the credit analyst career path, they need to obtain a bachelor’s degree in business, finance, or accounting, or at least an associated degree and relevant experience in a financial institution. Credit analysts work in the credit department of a bank or other financial…
What is a Credit Analysis Report? A credit analysis report is a document prepared by a credit bureau, and it contains information about the credit history of an individual. The report breaks down how borrowers pay their bills, the amount of unpaid debt, and the duration they have been managing the credit accounts. When compiling…
What is the Friedman Doctrine? The Friedman Doctrine is also referred to as the Shareholder Theory. American economist Milton Friedman developed the doctrine as a theory of business ethics that states that “an entity’s greatest responsibility lies in the satisfaction of the shareholders.” Therefore, the business should always endeavor to maximize its revenues to increase…
What is the Treynor Ratio? The Treynor Ratio is a portfolio performance measure that adjusts for systematic risk. In contrast to the Sharpe Ratio, which adjusts return with the standard deviation of the portfolio, the Treynor Ratio uses the Portfolio Beta, which is a measure of systematic risk. These ratios are concerned with the risk…
What is Basis Point (Beep)? A Basis Point, often referred to as a Beep (using the notation bp), is a measurement of one-hundredth of a percent or one ten-thousandth and is a term commonly used in finance. Basis points are commonly used in situations where differences of less than 1% are noteworthy. This is most…
What is the Foreign Exchange Spread? The foreign exchange spread (or bid-ask spread) refers to the difference in the bid and ask prices for a given currency pair. The bid price refers to the maximum amount that a foreign exchange trader is willing to pay to buy a certain currency, and the ask price is…
What is Public Finance? Public finance is the management of a country’s revenue, expenditures, and debt load through various government and quasi-government institutions. This guide provides an overview of how public finances are managed, what the various components of public finance are, and how to easily understand what all the numbers mean. A country’s financial…
