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What is a Run Rate?
Run rate is a term that can be applied to a certain type of accounting and management estimation or to the depletion of equity options. The first kind is when a current metric (such as sales revenue for a quarter) is assumed to extend out to the end of the year or accounting period for estimation or valuation purposes. The second kind uses the average dilution from the past three years, generally, to show the effect that convertible securities are having on the share price of a company. Continue reading...
How many investment choices should I have in my portfolio?
You can get substantial diversification through mutual funds and ETFs, but it is good to have increasing amounts of diversification the larger a portfolio is. Here are some general guidelines: If your portfolio is less than $50,000, probably 4-5 Mutual Funds will suffice. If your portfolio is from $50,000-$100,000, you might consider adding a few more exotic Mutual Funds or buying a couple of ETFs. Continue reading...
How Does Reimbursement Work? A Comprehensive Guide
Reimbursement is a financial mechanism where an organization compensates an individual or another entity for expenses they've incurred on the organization's behalf. This is not a reward or a bonus but a repayment for out-of-pocket expenses. Common scenarios include business-related expenditures, insurance claims, and overpaid taxes. Importantly, unlike regular compensation, reimbursements are typically not subject to taxation. Continue reading...
How Does "Ghosting" Represent the Unsettling Aspect of Stock Market Manipulation?
Ever heard of 'Ghosting' in the stock market? It's not about vanishing traders, but a shadowy manipulation tactic. Dive deep into this illicit strategy where prices are artificially driven, and discover the tools guarding the market's integrity. Be informed, stay ahead! Continue reading...
How did Uber evolve over time?
From a chilly Paris night's dilemma to global disruption, discover Uber's transformative journey. Dive deep into its genesis, challenges, and visionary endeavors. Witness how necessity spurred a ride-sharing revolution. 🚖🌍 #UberEvolution #InnovationJourney Continue reading...
What Is Demonetization?
Demonetization is a significant economic intervention that involves stripping a currency unit of its legal tender status. This process entails withdrawing the existing currency from circulation and often introducing new notes or coins. In some cases, an entire overhaul of the currency system takes place. This article delves into the concept of demonetization, its historical examples, advantages, disadvantages, and its impact on economies. Continue reading...
What is the Homeowners Protection Act (HPA)?
The HPA was enacted to protect consumers from the unscrupulous practices of some private mortgage insurance companies, which were not informing consumers of the consumer’s right to cancel their mortgage insurance at least by the time the individual had paid off 80% of their home. Consumers may be required to pay for private mortgage insurance to protect the lending institution if the borrower makes an initial payment of less than 20% of the value of the home. By law, lenders cannot require borrowers to have PMI after 80% of the original value of the mortgage has been paid off. Continue reading...
How Do Reverse Mergers Offer a Shortcut to Going Public?
Will Ripple Make a Superior Payment System?
Ripple is already making waves in the banking world and may be poised to become the #1 option for cross-border settlements between banks worldwide. Ripple is described as giving cross-border payments a protocol as universal as Http does for the web. The current default system for communicating cross-border payments, SWIFT, has been around since the 1970s, but transactions can take nearly a week to settle. This is because SWIFT only provides secure messaging services for the requests from different institutions, but each transaction still requires several intermediaries who each might take a day to negotiate or complete their part in the deal. Ripple offers a revolutionary way to complete transactions in a matter of seconds, by directly linking banks around the world and cutting out the middlemen wherever possible. Continue reading...
What is a Spin-off?
A spin-off is when a division or subsidiary of a company is separated from the parent corporation and starts to offer its own shares. The term can also colloquially refer to a situation where a group of talent leaves the larger company to start their own firm doing similar work as they used to do. As far as the SEC is concerned, the definition of a spin-off must include the shareholders of the parent corporation being offered a substantially proportionate amount of shares in the new company. Continue reading...
What is a Hostile Takeover?
A hostile takeover may not be as intense as it sounds, but it may not be pleasant for all those involved. It is an acquisition in which the controlling interest of shares in one company has come under the direction of another company, and the newly controlling company has decided to integrate the target company into their operations, which often results in cutting redundant jobs and making other decisions that the target company would probably not have made on its own. Continue reading...
What Is a Stock Market Crash?
Stock market crashes have posed a threat to both U.S. financial markets and citizens throughout history. Here is a timeline detailing each event. When a stock market crashes, it represents the culmination of a complex array of events that drive unexpected results. Markets can often absorb unexpected events, but if the level of uncertainty implied by these economic events spurs many investors to act out of fear, a market crash is far more likely to happen. Continue reading...