58 relations: Annual percentage yield, Average, Bank, Capital budgeting, Capital gain, Cash flow, Compound annual growth rate, Compound interest, Cost of capital, Deposit account, Difference of two squares, Dividend, Dividend tax, Dollar cost averaging, Economic value added, Effective interest rate, Exchange-traded fund, Expected return, Finance, Financial capital, Financial risk, Holding period return, Inequality of arithmetic and geometric means, Inflation, Interest, Interest rate, Internal rate of return, Internal Revenue Service, Investment, Life annuity, Modified Dietz method, Mutual fund, Net asset value, Net present value, Poker tools, Principles of Corporate Finance, Profit (accounting), Profitability index, Purchasing power, Rate of profit, Return of capital, Return on assets, Return on capital, Return on capital employed, Return on equity, Return on investment, Returns (economics), Risk-free interest rate, Separate account, Simple Dietz method, ..., Tax, Time value of money, Time-weighted return, U.S. Securities and Exchange Commission, Value investing, Variable universal life insurance, Volatility (finance), Yield (finance). Expand index (8 more) » « Shrink index
Annual percentage yield (APY) is a normalized representation of an interest rate, based on a compounding period of one year.
In colloquial language, an average is a middle or typical number of a list of numbers.
A bank is a financial institution that accepts deposits from the public and creates credit.
Capital budgeting, and investment appraisal, is the planning process used to determine whether an organization's long term investments such as new machinery, replacement of machinery, new plants, new products, and research development projects are worth the funding of cash through the firm's capitalization structure (debt, equity or retained earnings).
A capital gain refers to profit that results from a sale of a capital asset, such as stock, bond or real estate, where the sale price exceeds the purchase price.
A cash flow describes a real or virtual movement of money.
Compound annual growth rate (CAGR) is a business and investing specific term for the geometric progression ratio that provides a constant rate of return over the time period.
Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest.
In economics and accounting, the cost of capital is the cost of a company's funds (both debt and equity), or, from an investor's point of view "the required rate of return on a portfolio company's existing securities".
A deposit account is a savings account, current account or any other type of bank account that allows money to be deposited and withdrawn by the account holder.
In mathematics, the difference of two squares is a squared (multiplied by itself) number subtracted from another squared number.
A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits.
A dividend tax is the tax imposed by a tax authority on dividends received by shareholders (stockholders) of a company.
Dollar cost averaging (DCA) is an investment strategy with the goal of reducing the impact of volatility on large purchases of financial assets such as equities.
In corporate finance, economic value added (EVA) is an estimate of a firm's economic profit, or the value created in excess of the required return of the company's shareholders.
The effective interest rate (EIR), effective annual interest rate, annual equivalent rate (AER) or simply effective rate is the interest rate on a loan or financial product restated from the nominal interest rate as an interest rate with annual compound interest payable in arrears.
An exchange-traded fund (ETF) is an investment fund traded on stock exchanges, much like stocks.
The expected return (or expected gain) on a financial investment is the expected value of its return (of the profit on the investment).
Finance is a field that is concerned with the allocation (investment) of assets and liabilities (known as elements of the balance statement) over space and time, often under conditions of risk or uncertainty.
Financial capital is any economic resource measured in terms of money used by entrepreneurs and businesses to buy what they need to make their products or to provide their services to the sector of the economy upon which their operation is based, i.e. retail, corporate, investment banking, etc.
Financial risk is any of various types of risk associated with financing, including financial transactions that include company loans in risk of default.
In finance, holding period return (HPR) is the return on an asset or portfolio over the whole period during which it was held.
In mathematics, the inequality of arithmetic and geometric means, or more briefly the AM–GM inequality, states that the arithmetic mean of a list of non-negative real numbers is greater than or equal to the geometric mean of the same list; and further, that the two means are equal if and only if every number in the list is the same.
In economics, inflation is a sustained increase in price level of goods and services in an economy over a period of time.
Interest is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (i.e., the amount borrowed), at a particular rate.
An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited or borrowed (called the principal sum).
The internal rate of return (IRR) is a method of calculating rate of return.
The Internal Revenue Service (IRS) is the revenue service of the United States federal government.
In general, to invest is to allocate money (or sometimes another resource, such as time) in the expectation of some benefit in the future – for example, investment in durable goods, in real estate by the service industry, in factories for manufacturing, in product development, and in research and development.
A life annuity is an annuity, or series of payments at fixed intervals, paid while the purchaser (or annuitant) is alive.
The modified Dietz method is a measure of the ex post (i.e. historical) performance of an investment portfolio in the presence of external flows.
A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities.
Net asset value (NAV) is the value of an entity's assets minus the value of its liabilities, often in relation to open-end or mutual funds, since shares of such funds registered with the U.S. Securities and Exchange Commission are redeemed at their net asset value.
In finance, the net present value (NPV) or net present worth (NPW) is a measurement of profit calculated by subtracting the present values (PV) of cash outflows (including initial cost) from the present values of cash inflows over a period of time.
Poker tools are a variety of software or web-based applications that allow the statistical analysis of poker players, games or tournaments.
Principles of Corporate Finance is a reference work on the corporate finance theory edited by Richard Brealey, Stewart Myers, and Franklin Allen.
Profit, in accounting, is an income distributed to the owner in a profitable market production process (business).
Profitability index (PI), also known as profit investment ratio (PIR) and value investment ratio (VIR), is the ratio of payoff to investment of a proposed project.
Purchasing power (sometimes retroactively called adjusted for inflation) is the number and quality or value of goods and services that can be purchased with a unit of currency.
In economics and finance, the profit rate is the relative profitability of an investment project, of a capitalist enterprise, or of the capitalist economy as a whole.
Return of capital (ROC) refers to principal payments back to "capital owners" (shareholders, partners, unitholders) that exceed the growth (net income/taxable income) of a business or investment.
The return on assets (ROA) shows the percentage of how profitable a company's assets are in generating revenue.
Return on capital (ROC), or return on invested capital (ROIC), is a ratio used in finance, valuation and accounting, as a measure of the profitability and value-creating potential of companies after taking into account the amount of initial capital invested.
Return on capital employed is an accounting ratio used in finance, valuation, and accounting.
In corporate finance, the return on equity (ROE) is a measure of the profitability of a business in relation to the book value of shareholder equity, also known as net assets or assets minus liabilities.
Return on investment (ROI) is the ratio between the net profit and cost of investment resulting from an investment of some resource.
Returns, in economics and political economy, are the distributions or payments awarded to the various suppliers of the factors of production.
The risk-free interest rate is the rate of return of a hypothetical investment with no risk of financial loss, over a given period of time.
A separate account is a segregated accounting and reporting account held by an insurance company not in, but rather "separate" from its general account.
The simple Dietz method is a means of measuring historical investment portfolio performance, compensating for external flows into/out of the portfolio during the period.
A tax (from the Latin taxo) is a mandatory financial charge or some other type of levy imposed upon a taxpayer (an individual or other legal entity) by a governmental organization in order to fund various public expenditures.
The time value of money is the greater benefit of receiving money now rather than later.
The time-weighted return (TWR) is a method of calculating investment return.
The U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government.
Value investing is an investment paradigm which generally involves buying securities that appear underpriced by some form of fundamental analysis, though it has taken many forms since its inception.
Variable universal life insurance (often shortened to VUL) is a type of life insurance that builds a cash value.
In finance, volatility (symbol σ) is the degree of variation of a trading price series over time as measured by the standard deviation of logarithmic returns.
In finance, the yield on a security is the amount of cash (in percentage terms) that returns to the owners of the security, in the form of interest or dividends received from it.
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