What is Series B Financing? Series B financing (also known as series B round or series B funding) is one of the stages in the capital-raising process of a startup. Essentially, the series B round is the third stage of startup financing and the second stage of venture capital financing. How Does Series B Financing…
What is Series A Financing? Series A financing (also known as series A round or series A funding) is one of the stages in the capital-raising process by a startup. Essentially, the series A round is the second stage of startup financing and the first stage of venture capital financing. Similar to seed financing, series…
What is Seed Financing? Seed financing (also known as seed capital, seed money, or seed funding) is the earliest stage of the capital-raising process of a startup. Seed financing is a type of equity-based financing. In other words, investors commit their capital in exchange for an equity interest in a company. Generally, this is done…
What is the Theory of Liquidity Preference? The Theory of Liquidity Preference states that agents in financial markets demonstrate a preference for liquidity. Formally, if U(Asset A) > U(Asset B) and rA = rB, then L(Asset A) > L(Asset B), where: U(Asset A) is an investor’s utility from holding asset A U(Asset B) is an investor’s…
What are Capital Markets? Capital markets are the exchange system platform that transfers capital from investors who want to employ their excess capital to businesses that require the capital to finance various projects or investments. Types of Capital Markets Capital markets primarily feature two types of securities: equity securities and debt securities. Both are forms…
What is the Stochastic Oscillator? The Stochastic Oscillator is an indicator that compares the most recent closing price of a security to the highest and lowest prices during a specified period of time. It gives readings that move (oscillate) between zero and 100 to provide an indication of the security’s momentum. The stochastic readings are…
Capital Investment Model Template This capital investment model template will help you calculate key valuation metrics of a capital investment including the cash flows, net present value (NPV), internal rate of return (IRR), and payback period. Below is a preview of the template: Download the Free Template What is a Capital Investment Model Most companies…
What are Pivot Points? Pivot points refer to technical indicators used by day traders to identify potential support and resistance price levels in a securities market. They are based on the previous day’s high, low, and closing prices. Traders use pivot points and the support and resistance levels they provide to determine potential entry, exit,…
What is the Chaikin Money Flow (CMF)? The Chaikin Money Flow (CMF) is an indicator created by Marc Chaikin in the 1980s to monitor the accumulation and distribution of a stock over a specified period. The default CMF period is 21 days. The indicator readings range between +1 and -1. Any crosses above or below…
