Accumulation Phase (Annuities) – Explained

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

What is the Accumulation Phase (Annuities)?In annuities, an accumulation phase refers to the period when investors make deposits into annuity so as to build up the cash value of the annuity. Once the cash in the annuity plan accrues, the annuitization phase can then...

Accounts Receivable Subsidiary Ledger – Explained

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

What is an Accounts Receivable Subsidiary Ledger?An accounts receivable subsidiary ledger is an account book that shows a list of customers or clients who owe a company. Customers that are in debt to a company are listed in the ledger in order to ensure easy tracking...

Accounts Receivable Financing – Explained

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

What is Accounts Receivable Financing?Accounts receivable financing is a method of financing in which a company obtain funding for its operations through money owed by its customers. When a business sells its accounts receivable with the aim of converting them to cash...

Accounts Receivable Conversion (Banking) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry

Update Table of Contents What is Accounts Receivable Conversion?How Does Accounts Receivable Conversion Work?Accounts Receivable Conversion and Financial Innovation in Commercial Banking  What is Accounts Receivable Conversion?An accounts receivable conversion (ARC)...

End Loan – Explained

by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry

Update Table of Contents What is an End Loan?How Does an End Loan Work?How borrowers use end loans What is an End Loan?An end loan is a particular form of long-term loan that a person borrows for repaying a construction loan in the short-run, or some other kind of...

Empirical Probability – Explained

by TheBusinessProfessor | Feb 23, 2025 | Research, Quantitative Analysis, & Decision Science

What is Empirical Probability?Empirical probability refers to an estimated probability that considers the number of occurrences that an outcome has in a sample set. This is further used for knowing the probability of that very outcome. In simpler words, if the event X...

Check Truncation – Explained

by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry

Update Table of Contents What is Check Truncation?How Does Check Truncation Work?Why Check Truncation was CreatedBenefits of Check TruncationCheck Truncation LawCheck Truncation Operations and ClearingOutward Clearing Inward Clearing  What is Check Truncation?Check...

Callable Security – Explained

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

What is a Callable Security?A callable security is a security that allows the issuer to redeem or repurchase it at a specified time before its maturity date. This means that the holder of a callable security can have the security repurchased by the issuer before its...

Candlestick (Price Chart) – Explained

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

What is a Candlestick Price Chart?A candlestick is a price chart that helps investors or traders identify price direction and movements for a particular period. This chart embodies data for different periods and each period is clearly demarcated by price bars....

Capital Adequacy Ratio – Explained

by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry

Update Table of Contents What is a Capital Adequacy Ratio?How Does a Capital Adequacy Ratio Work?Tier-1 capital Tier-2 capital Risk-Weighted Assets Capital Adequacy Ratio What is a Capital Adequacy Ratio?The capital adequacy ratio (CAR) is otherwise called Capital to...