Cash Reserves – Meaning, Importance And How To Calculate It
Cash Reserves is the amount or fund that a business or individual keeps aside for meeting emergency needs. Basically, it is a type of saving to meet unexpected or …
Investment Decisions
Weighted Average Shares Outstanding – Meaning, Calculation And More
Weighted Average Shares Outstanding incorporates any changes in the outstanding shares over a reporting period. This number is of great significance as it is useful for creating key financial …
Financial Risk – Meaning, Types, Management And More
Financial risk is an inherent part of the investment and is applicable to the businesses, government, individual, and even financial markets. It basically represents the chance that the parties …
Commodity Exchange – Functions, Advantages And More
A Commodity Exchange or Comex is a regulated market allowing the purchase and sale of contracts backed by commodities such as gold, silver, crude oil and so on. Such …
Primary Market vs Secondary Market – All You Need To Know
The term market in the finance world usually refers to both – primary market and the secondary market. Both markets are part of the capital market. The primary market, …
ROI vs IRR – All You Need To Know
Return on Investment (ROI) and Internal Rate of Return (IRR) are two popular metrics to measure the performance of an investment. Although the internal rate of return is more …
NPV vs IRR vs PB vs PI vs ARR
Every firm has to take several investment decisions in its life. Investment decisions are the firm’s decision to invest its funds, most efficiently, into long term assets. The firms …
Effective Interest Rate – Meaning, Formula, Importance And More
Effective Interest Rate is the true interest rate that a company or an individual earns or pay over a given period of time as a result of compounding. It …
Sustainable Growth Rate or SGR
Growth is a significant success factor for any firm. The growth in revenue, profit, asset base or other things helps to measure the growth of the business. Both high …
Present Value Table – Meaning, Important, How To Use It
A Present Value table is a tool that assists in the calculation of present value (PV). To get the present value, we multiply the amount for which the present …
