EBITDA, or earnings before interest, taxes, depreciation, and amortization, is a widely used measure of profitability in financial analysis. However, it has its limitations as it does not take into account net income. To address this, a more accurate measure called nebitda, or net earnings before interest, taxes, depreciation, and amortization, has emerged. Nebitda includes … Read more
A Charitable Remainder Annuity Trust (CRAT) is a complex and specialized gift transaction that combines philanthropy with financial planning. It involves the creation of an irrevocable trust, in which a donor contributes assets that are then used to provide a fixed income to noncharitable beneficiaries through an annuity. The annuity value is determined as a … Read more
Joint supply and joint demand are important concepts in economics that describe the relationship between multiple goods or services. Joint supply refers to the production of two or more outputs from a single product or process. Changes in one product in joint supply can have significant effects on the other. Joint demand, on the other … Read more
Money flow is a crucial concept in trading that assesses the movement of funds into and out of a stock. By comparing the stock’s purchase price (uptick) to its selling price (downtick), money flow can be determined. If the volume of shares bought during the uptick exceeds the volume sold during the downtick, the net … Read more
Retained earnings in accounting play a crucial role in evaluating a company’s financial well-being. Essentially, they represent the cumulative net profits or earnings of a company after accounting for dividend payments. The decision to retain or distribute earnings rests with the management, who may choose to utilize them for various purposes such as expanding production … Read more
CWT, or Hundredweight, is a unit of measurement that has been traditionally used in commodities trading and shipping. It is commonly employed to measure products such as steel, cattle, oil, seeds, and grains. In the US, CWT is equivalent to 100 pounds, while in the UK, it is equal to 112 pounds. Despite its historical … Read more
A trading desk is a physical location where securities transactions occur, serving as a crucial element in the functioning of financial firms involved in various markets. It provides market liquidity and is also known as a dealing desk. Traders specializing in specific security types or market segments converge in a trading floor or trading room, … Read more
The bearish harami is a candlestick pattern that often signals a potential reversal in an uptrend. This pattern consists of a long white candle followed by a small black candle, with the second candle’s opening and closing prices contained within the body of the first candle. Traders commonly use additional technical indicators, such as the … Read more
Yield spread, also known as yield differential, is a measure of the difference in yields between various debt instruments. It is commonly used to evaluate the relative performance of different sectors by subtracting the yield of one instrument from another. Yield spreads are often quoted in relation to U.S. Treasuries or AAA-rated corporate bonds and … Read more
Quantity demanded is a fundamental concept in economics that refers to the total amount of a good or service that consumers are willing and able to purchase at a given price within a specific time frame. It plays a crucial role in understanding consumer behavior and the dynamics of market demand. The relationship between quantity … Read more