Structured Investment Vehicle – Explained

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

What is a Structured Investment Vehicle?A structured investment vehicle (SIV) is a type of fund or investment pool that seeks to generate profit from credit spreads short-term liabilities or debts and long-term assets. Conduits is another name structured investment...

Treasury Stock Method – Explained

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

What is the Treasury Stock Method?Treasury stock method is used to compute the amount of new company shares or net increase in shares that can be created from outstanding in-the-money warrants or options. These increases (extra shares) are calculated by the diluted...

Unlevered Beta – Explained

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

What is an Unlevered Beta?An unlevered beta is a risk measurement technique that measures the market risk of a company without considering debts. It is also known as asset beta. An unlevered beta seeks to find the beta of a company excluding the impact of debt or...

Unlevered Free Cash Flow – Explained

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

What is an Unlevered Free Cash Flow?Unlevered free cash flow (UFCF) refers to the money available to a company without interest payments. It is the cash flow of a company based on the belief that the company owes no debt therefore has no interest payments to make....

Unlevered Cost of Capital – Explained

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

What is an Unlevered Cost of Capital?The unlevered cost of capital is the evaluating of the expected rate of return on a company’s assets using a hypothetical debt-free situation. The unlevered cost of capital is purely theoretical, it is an evaluation of a...

Turing Test – Explained

by TheBusinessProfessor | Feb 23, 2025 | Operations, Project, & Supply Chain Management

What is the Turing Test?Developed in 1950 by Alan Turing, the Turing test is a measure for determining if a machine can perform basic human tasks, or matches up with human technology in actions, words and imaginations. This test is the foundation of Artificial...

Peak and Trough (Economics) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is a Trough (Economy)?A trough is a period which signifies that a country’s economy or business cycle has stopped declining. Troughs usually signify that economic decline has now turned in the opposite direction, and the economy is either growing or...

Master Swap Agreement – Explained

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

What is a Master Swap Agreement?Master swap agreement refers to a contract that is standardized established in 1980s by the International Derivatives Association. It can also be defined as an agreement either made or is yet to be made between the borrower and the bank...

World Gold Council – Explained

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

What is the World Gold Council?The World Gold Council, with its headquarters in London, is a nonprofit organization of the finest gold producers of the world. It works as a market development association for the gold sector, and consists of 25 members, among which...

Workout Period (Trading) – Explained

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

What is a Workout Period?Workout period is the time period when adjustments are made for temporary yield differences in fixed income securities. This period works as a reset period where credit rating agencies and institutions issuing bonds analyze problems associated...