Operating cash flow is the amount of cash a company is able to generate from its operations - i.e., how much real cash flow is being generated after accounting for expenses. It is calculated by adjusting net income for items like depreciation and changes in inventory.
A company’s OCF is an important metric in determining whether it can generate cash flow without requiring external financing. The timeliness and frequency of cash flows is important as well, in that a company ideally produces consistent and favorable OCF.
Mutual funds are actively managed. ETFs are mostly passively managed, usually track a specific market index, and can be bought and sold like stocks.
IRA is a tax designation which can be placed on an account at various institutions that offer a list of investment options
A 457 is a deferred compensation arrangement that is available to some government employers and non-profit organizations
The MSCI ACWI is the “All Country World Index” - providing the broadest measure for global stocks
Income tax is paid to the government based on the amount of income earned. There are federal and some state income taxes
Form 2106 is the long-form way to request deductions for unreimbursed business expenses incurred by the employee
Economies of Scale is a concept that the efficiency of production rises as the quantity of goods produced increases
Bill Collectors jobs are to extract as much payment from those who are past-due on payment obligations
Regular pension payments are periodic distributions. This will be the default option on pension arrangements
Federal debt is the money owed by the government. The primary source of this debt is Treasury Bonds