Pro-Rata Participation Rights
What are Pro-Rata Participation Rights? Pro-rata participation rights, or pro-rata investing rights, guarantee existing investors the right to participate in future fundraising activities. Pro-rata participation rights allow private investors to maintain and/or expand their share of a business by participating in future funding rounds. As a result, the rights allow private investors to protect against...
Weighted Average Cost Method
What is Weighted Average Cost (WAC)? In accounting, the Weighted Average Cost (WAC) method of inventory valuation uses a weighted average to determine the amount that goes into COGS and inventory. The weighted average cost method divides the cost of goods available for sale by the number of units available for sale. The WAC method...
Share Capital
What is Share Capital? Share capital (shareholders’ capital, equity capital, contributed capital, or paid-in capital) is the amount invested by a company’s shareholders for use in the business. When a company is first created, if its only asset is the cash invested by the shareholders, the balance sheet is balanced with cash on the left...
Startup Valuation Methods
What are Startup Valuation Methods? Valuing a startup is one of the most challenging tasks often required by financial analysts. In this article, we will discuss how to value a startup as well as some of the more popular valuation methods. Startups, in the most general sense, are new business ventures created by an entrepreneur....
Advanced Technical Analysis
What is Advanced Technical Analysis? Advanced technical analysis usually involves using either multiple technical indicators or a rather sophisticated (i.e., complex) indicator. “Sophisticated” does not necessarily mean “better” – it just means more difficult to calculate than, say, an arithmetic average. Technical analysis is a means of interpreting the price action over time of a...
