Board of Directors
What is a Board of Directors? A board of directors is a panel of people who are elected to represent shareholders. Every public company is legally required to have a board of directors. Nonprofits and many private companies, while not required to have a board of directors, may elect to have one to help govern...
Capital Markets Sales Career Profile
What is Capital Markets Sales? Capital markets sales is a career path within the capital markets division at an investment bank. This salesperson is responsible for assisting clients in buying and selling capital market instruments such as stocks, bonds, foreign exchange, and derivatives to earn trading revenue and commissions for the bank. The bank’s clients...
Market Valuation Approach
What is the Market Approach to Valuation? The market approach is a valuation method used to determine the appraisal value of a business, intangible asset, business ownership interest, or security by considering the market prices of comparable assets or businesses that have been sold recently or those that are still available. Price-related indicators like sales,...
Standard Deviation
What is Standard Deviation? From a statistics standpoint, the standard deviation of a dataset is a measure of the magnitude of deviations between the values of the observations contained in the dataset. From a financial standpoint, the standard deviation can help investors quantify how risky an investment is and determine their minimum required return on the...
Multiple Expansion
What is Multiple Expansion? Multiple expansion is a form of arbitrage that employs the purchase of a security at a lower valuation multiple and selling a security at a higher valuation multiple. Generally, companies with lower valuation multiples are smaller and with higher investment risk compared to companies with higher valuation multiples. In addition, the...
