What is Earnings Volatility? Earnings volatility is a statistical concept that determines the associated risk and helps predict the market price of a particular stock. Volatility is the risk related to different degrees of change in a security’s value. Higher volatility implies higher risk. A market witnessing sustained rises and falls over a significant period…
What is an Acquirer? An acquirer is a registered company that purchases a portion of, or all the rights to, another company. The acquiring company takes over the management of another company by obtaining a majority stake in the target, effectively giving it control of the company through stock voting rights. Alternatively, the acquirer may…
What is Profit vs Cash? Understanding the difference between profit vs cash is very important in the finance industry. Profit is defined as revenue less all the expenses of a company in a certain period, while cash flow is cash that flows in and out to/from a business throughout a certain period of time. Profit…
What are Sources of Finance? Companies always seek sources of funding to grow their business. Funding, also called financing, represents an act of contributing resources to finance a program, project, or need. Funding can be initiated for either short-term or long-term purposes. The different sources of funding include: Retained earnings Debt capital Equity capital Other…
What is Shareholder Base? Shareholder base refers to the total number of shareholders in a company. In other words, it is a base of owners (investors) of a company that holds a certain number of stock (shares) in the business distributed proportionally, depending on the amount of investment made. Shareholders are diverse, which means that…
What are Provisions? Provisions represent funds put aside by a company to cover anticipated losses in the future. In other words, provision is a liability of uncertain timing and amount. Provisions are listed on a company’s balance sheet under the liabilities section. Example of a Provision An example of a provision is a product warranty…
What is Investment? Investment is the process of allocating capital to a financial instrument (e.g., stocks, bonds) backed by an expectation to receive certain benefits in the future. In the financial world, the benefit of investment is referred to as a return. The return can be either positive (gain) or negative (loss). Returns can be…
How to Repeat Previous Command in Excel? Repeating commands is an important function in Microsoft Excel while working on a worksheet. Using the Repeat the Previous Command in Excel helps to avoid typing and entering the same command or formula on each and every cell of the sheet. There are two ways by which one…
What are Naked Credit Default Swaps? Naked Credit Default Swaps (CDS) are credit default swaps holdings that are not backed by a sufficient amount of the underlying asset. Holding a naked CDS holding is like getting automobile insurance without owning a car or taking fire insurance on someone else’s house. Naked credit default swaps allow…
What is P/AFFO? The P/AFFO is calculated by adding the P/FFO to any rent increases and subtracting capital expenditures and routine maintenance costs. The P/AFFO is a measure of the financial performance of a REIT (Real Estate Investment Trust). It is equal to the P/FFO adjusted to consider capital expenditures and regular maintenance costs, making…
