Accreted Value – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is Accreted Value?Accreted value is a value that accumulates interest, but will not pay out that interest at any given time until it reaches maturity. Accreted value is commonly applied on zero-coupon bonds or on cumulative preferred stock.How does Accreted Value...

Accretion of Discount – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is Accretion of Discount?The accretion of discount refers to the increase in the value of a discounted security as its maturity date approaches. In other words, it is a procedure in accounting used to adjust the value of a bond which has been bought at a...

Accrued Interest Adjustment – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is an Accrued Interest Adjustment?Accrued interest adjustment is an accounting adjustment to the taxable income charged to the purchase of a convertible bond or other convertible security instrument. Basically, a convertible instrument accrues interest as its...

Activity Driver Analysis – Explained

by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting

What is an Activity Driver Analysis?Activity cost driver analysis is a method used to assess and identify factors that influence the operation cost. This is usually a cost related to goods and services which forms part of activity-based costing (ABC). In other words,...

Activity Quota (Sales) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Principles of Marketing

What is an Activity Quota?This refers to a minimum level of sales set by an organization where every salesperson is supposed to meet within a specified period of time. In other words, it is a method used to measure the sales employees performance. This is usually in...

Active Bond – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is an Active Bond?An active bond refers to either a corporate bond or other fixed-income security which is often traded in largely on the New York Stock Exchange (NYSE). This isn’t to be mistaken for actively managed bond investment techniques.How Does an...

Active Bond Crowd – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is an Active Bond Crowd?Active bond crowd refers to the name given to the New York Stock Exchange (NYSE) members and the particular bond trading departments which are recognized as traders who engage in frequent trading of active bonds. How Does an Active Bond...

Active Index Fund – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is an Active Index Fund?An active index fund refers to a basket of assets which holdings from a benchmark index is used by the fund manager to construct the initial investment. The fund manager then includes securities that are not related to the underlying index...

Actual Deferral Percentage / Contribution Percentage Tests – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles

What are the Actual Deferral Percentage & Actual Contribution Percentage TestsThe Actual Deferral Percentage/Actual Contribution Percentage simply refers to two separate 401 (k) nondiscrimination plan tests. ERISA and the IRS require that a 401K pass these tests...

Adjusted Funds from Operations – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What are Adjusted Funds From Operations?Adjusted funds from operations is the evaluation of financial performance that is used while observing real estate investment trusts, commonly known as REITs. There are several methods to assess adjusted funds from operations of...