Structured Finance
What is Structured Finance? Structured finance deals with financial lending instruments that work to mitigate serious risks related to complex assets. For most, traditional tools such as mortgages and small loans are sufficient. However, borrowers with greater needs, such as corporations, seek structured finance to deal with complex and unique financial instruments and arrangements to...
Return on Assets (ROA): Formula, Calculation, and Financial Analysis
What Is Return on Assets? Return on assets (ROA) is a profitability ratio that measures how efficiently a company generates profit from its total assets, calculated by dividing net income by total assets. A higher ROA indicates a company is more effective at converting its asset investments into earnings. For example, an ROA ratio of...
Return on Investment: Formula, Meaning, and How to Calculate It
Every major financial choice begins with a simple question: Does this investment create value? Understanding ROI equips you to compare options, assess potential outcomes, and allocate capital with confidence. In this guide, you’ll learn how to determine ROI by analyzing scenarios that account for initial cost, risk appetite, and an investment’s projected performance. Join over...
Unicorn
What is a Unicorn? In finance, “unicorn” is a term that describes a privately-owned startup with a valuation of over $1 billion. The term was introduced by venture capital investor, Aileen Lee, in 2013 to describe rare tech startups that were valued at more than $1 billion. The phenomenon of unicorns is quite controversial. Although...
REIT vs REOC
What is REIT vs REOC? As an investor, it is important to know the differences between REIT vs REOC. A real estate investment trust (REIT) and a real estate operating company (REOC) are types of real estate companies that trade in a public exchange market but come with functional and operating differences. A REIT is a...
