What is a Parent Company? A parent company is a company that owns more than 50% of the outstanding voting shares of another company. Therefore, it controls the other company or companies and can directly influence the business’ operations or take a more hands-off approach on ownership. A parent company typically actively manages its own…
What is Pareto Analysis? Pareto analysis is a decision-making tool used to compare and fix problems strategically. It uses the Pareto principle, which is also known as the 80/20 rule – named after Italian economist Vilfredo Pareto. He found that many phenomena or trends follow the 80/20 rule. For example, in Pareto’s first works, he…
What is Chebyshev’s Inequality? Chebyshev’s inequality is a probability theory that guarantees that within a specified range or distance from the mean, for a large range of probability distributions, no more than a specific fraction of values will be present. In other words, only a definite fraction of values will be found within a specific…
What is Participating Preferred Stock? Participating preferred stock gives the holder the right to a specific dividend which is separate from the dividends common stockholders receive and is also received before common stockholders. It is a clause that also gives preferred stock holders priority of accumulated dividends over common stockholders in the event that the…
What is the Molodovsky Effect? The Molodovsky Effect is the imperial observation by Nicholas Molodovsky that at the bottom of an economic cycle, P/E ratios are high, and earnings are low. However, at the top of an economic cycle where there is an economic boom, the P/E ratios are low, and earnings are high. The…
What is Liquidation Preference? Liquidation preference determines the order in which a bankrupt firm’s liquidated assets are paid out to claimants of the firm. It is determined based on the clauses in outstanding agreements and contracts by a liquidator. Further, the liquidation preference can also influence the value of financial securities as it can alter…
What are Holdovers? When you receive a check, you deposit it with a bank to transfer it to your account. From the time it is deposited to the time it is transferred to the account, it is a holdover check. Checks are the most common type of holdover transactions. Causes of Holdover Transactions Holdovers may…
What is a Holdover Tenant? A holdover tenant continues to live in the tenement after the expiry of the initial agreement. Effectively, there is no lease agreement, and the owner and the tenant may come to an unsaid agreement. The tenant continues to pay the rent, and, in some jurisdictions, it may be treated as…
To reduce Excel file size, remove unnecessary worksheets, data, formulas, and formatting. Additionally, convert formulas to values, remove Pivot Cache, and save in binary format (.xlsb). Compressing the file into a zip archive can also help. Each method improves performance and ease of sharing but comes with trade-offs. How to Reduce Excel File Size The…
