Tag: long term

Degree Of Relative Liquidity – DRL definition explanation

What is Degree Of Relative Liquidity – DRL?
A liquidity metric that looks at a company’s ability to support short-term expenditures. Degree of relative liquidity is determined by looking at the total percentage of cash that a company has available on hand. The cash must be earned through regular operations and be able to be spent on expenditures and short-term debt obligations through a specific period.

Companies that possess a higher degree of relative liquidity will probably have less difficulty in retrieving funds for payment purposes. Read more for examples and further explanation including related video clips and also comments
Continue reading “Degree Of Relative Liquidity – DRL definition explanation”

Startup definition explanation

What is Startup?
A company that is in the first stage of its operations. These companies are often initially bank rolled by their entrepreneurial founders as they attempt to capitalize on developing a product or service for which they believe there is a demand. Due to limited revenue or high costs, most of these small scale operations are not sustainable in the long term without additional funding from venture capitalists. Read more for examples and further explanation including related video clips and also comments
Continue reading “Startup definition explanation”

Capitalize definition explanation

What is Capitalize?
An accounting method used to delay the recognition of expenses by recording the expense as long-term assets.

In general, capitalizing expenses is beneficial as companies acquiring new assets with a long-term lifespan can spread out the cost over a specified period of time. Companies take expenses that they incur today and deduct them over the long term without an immediate negative affect against revenues. Read more for examples and further explanation including related video clips and also comments
Continue reading “Capitalize definition explanation”

Style definition explanation

What is Style?
The investment approach or objective that a fund manager uses to make choices in the selection of securities for the fund’s portfolio. While there are a variety of styles, there are nine basic investing styles for both equity and fixed-income funds. For stock funds, company size and value/growth characteristics determine the style. For bonds, style is defined by maturities and credit quality. Read more for examples and further explanation including related video clips and also comments
Continue reading “Style definition explanation”

Haurlan Index definition explanation

What is Haurlan Index?
A technical analysis indicator, developed by P.N. Haurlan, that is used to detect market breadth. There are three components of the Haurlan index:

Short Term: a 3-day exponential moving average is taken of the net NYSE advances over declines.

Intermediate Term: same, using a 20-day exponential moving average.

Long Term:same, using a 200-day exponential moving average. Read more for examples and further explanation including related video clips and also comments
Continue reading “Haurlan Index definition explanation”

Capital Gain definition explanation

What is Capital Gain?
1. An increase in the value of a capital asset (investment or real estate) that gives it a higher worth than the purchase price. The gain is not realized until the asset is sold. A capital gain may be short term (one year or less) or long term (more than one year) and must be claimed on income taxes. A capital loss is incurred when there is a decrease in the capital asset value compared to an asset’s purchase price.

2. Profit that results when the price of a security held by a mutual fund rises above its purchase price and the security is sold (realized gain). If the security continues to be held, the gain is unrealized. A capital loss would occur when the opposite takes place. Read more for examples and further explanation including related video clips and also comments
Continue reading “Capital Gain definition explanation”

Corporate Governance Quotient – CGQ definition explanation

What is Corporate Governance Quotient – CGQ?
A metric developed by Institutional Shareholder Services (ISS) that rates publicly traded companies in terms of the quality of their corporate governance. Each public company covered by the metric is assigned a rating based on a number of factors that are considered by the ISS model. Factors used in the CGQ formula include board structure and composition, the executive and director compensation charter, and bylaw provisions. Read more for examples and further explanation including related video clips and also comments
Continue reading “Corporate Governance Quotient – CGQ definition explanation”

Forward Premium definition explanation

What is Forward Premium?
When dealing with foreign exchange (FX), a situation where the spot futures exchange rate, with respect to the domestic currency, is trading at a higher spot exchange rate then it is currently. A forward premium is frequently measured as the difference between the current spot rate and the forward rate, but any expected future exchange rate will suffice. Read more for examples and further explanation including related video clips and also comments
Continue reading “Forward Premium definition explanation”