What is Equity Ratio? The equity ratio is a financial metric that measures the amount of leverage used by a company. It uses investments in assets and the amount of equity to determine how well a company manages its debts and funds its asset requirements. Formula for Equity Ratio The formula for Equity Ratio is:…
What is Simple Interest vs Compound Interest? In this article, we will discuss simple interest vs compound interest and illustrate the major differences that can arise between them. Interest payments can be thought of as the price of borrowing funds in the market. They are paid by the borrower to the lender with the payment…
What are Residential Properties REITs? Residential properties REITs are REITs that own and manage residential units for renting out to tenants. Residential REITs may be categorized into either single-family or multi-family structures that are available for occupation for non-business purposes. They may include condominiums, vacation homes, student housing, apartment buildings, etc. Residential real estate REITs…
What is MJSD (March, June, September, and December)? MJSD is an acronym that stands for the months of March, June, September, and December. The months are the final months of the four annual quarters for releasing financial earnings and declaring dividends. Public companies operating in the United States are required to file quarterly earnings reports…
What is Ethical Banking? Ethical banking involves consciousness of how banking practices affect society and the environment. Financial institutions that emphasize ethical practices seek profit like any other financial institution. However, they strive to generate earnings without sacrificing principles or causing harm. The term is a fairly broad one, which means it covers a wide…
What are Adjusted Funds From Operations (AFFO)? Adjusted Funds From Operations (AFFO) is a measure of the financial performance of a REIT, and it is used as an alternative to Funds From Operations (FFO). AFFO is a superior measure compared to FFO because the former considers the maintenance costs of the real estate property over…
What is the NCREIF? NCREIF is an acronym of the National Council of Real Estate Investment Fiduciaries, and it operates as a non-profit entity. The main aim of the NCREIF is to inform concerned parties on the actual performance of the real estate industry, so they can use the information to make informed decisions. The…
What are Private REITs vs Publicly Traded REITs? The article below covers private REITs vs publicly traded REITs. Real estate investment trusts (REITs) can be classified into either private or public, traded or non-traded. REITs specifically invest in the real estate sector, and they lease and collect rental income on the invested properties that is…
What is the Redemption Rights Clause? The redemption rights clause gives the owner of a property the right to reclaim his/her property during a foreclosure auction. The clause is often included in a mortgage agreement. Redemption rights allow the borrower to prevent foreclosure on the property by paying all liens or back taxes on the…
What are a Bank’s Business Segments? A bank’s major business segments are retail banking, wholesale banking, and wealth management. While banks might take on different names for their various business operations, they still perform the same business functions as these three categories. Some larger banks also run business segments outside of the traditional three, such…
