But many young people also have car loans and more than a little bit of credit card debt. If your employer offers a company-sponsored retirement plan, this should be your first choice. They'll typically provide either a 401 or a 403 plan that will l... Read more
Demand deposit accounts are intended to provide ready money—the funds people need to make a purchase or pay bills. Checking AccountsA checking account is a bank account that allows multiple deposits and withdrawals. A savings account is a typical ac... Read more
Take a look at monthly maintenance fees, minimum balance requirements and transaction fees. Also ensure the account has all of the features you need, like a mobile app. Although most major banks offer low interest rates on their savings accounts, ma... Read more
And the company is usually required to pay an insurance fees for one year or more in advance. In this case, it needs to account for prepaid insurance by properly making journal entries in order to avoid errors that could lead to misstatement on both... Read more
As the loans are returned or paid off sooner, they usually involve small amounts, so that the borrower won’t be burdened with large monthly payments. Are you currently in a tight spot due to a bad credit score? Unsecured personal loans might o... Read more
Financial ratios are relationships determined from a company's financial information and used for comparison purposes. Examples include such often referred to measures as return on investment , return on assets , and debt-to-equity, to name just thr... Read more
When this occurs, the child company is referred to as a "wholly-owned subsidiary." It may hold the majority of shares in a subsidiary company, allowing it to control and manage the organization. Parent and holding companies are often used as interch... Read more
Today, we move beyond CAPM’s simple linear regression and explore the Fama French multi-factor model of equity risk/return. For more background, have a look at the original article published in The Journal Financial Economics, Common risk fact... Read more
The Times Interest Earned ratio is calculated by dividing a company’s earnings before interest and taxes by its periodic interest expense. As you can see, creditors would favor a company with a much higher times interest ratio because it shows... Read more
Funds of hedge fund managers should also put in place policies and procedures to manage the liquidity risk of the fund so that fund investors do not suffer undue difficulty when redeeming their units. For example, equity strategies can provide high... Read more
