Short Position (Trading) – Explained

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

What is a Short Position?A short position is a directional position used by investors when trading securities in the market. This position entails a trader selling a security with the aim or repurchasing the same security when there is a decline in security price so...

Shoestring Budget – Explained

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

What is a Shoestring Budget?”On a Shoestring Budget” refers to a project or task that is attempted with a small budget or minimal capital funding – which is generally insufficient for the proposed capacity of the project. A shoestring budget is...

Child and Dependent Care Credit – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is the Child And Dependent Care Credit?Child and dependent care credit is a tax credit, usually non-refundable, offered to taxpayers who pay for childcare using money from their own pockets. The main purpose of this credit is to help the low income working...

Shareholder’s Equity – Explained

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

What is Equity on the Balance Sheet? Equity, also known as Shareholder’s Equity, is a special type of category of accounts representing  the owner’s interest in the business or the owner’s claim on the assets. Generally, this consists of what the...

Bank Wire – Explained

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

Update Table of Contents What is a Bank Wire?How Does a Bank Wire Transfer Work?Bank Wire and Security What is a Bank Wire?A bank wire refers to a direct and electronic transfer of messages, account information and notifications from one bank account to another. It is...

Bank Rate – Explained

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

Update Table of Contents What is a Bank Rate?How Does a Bank Rate Work?Discount Rate Versus Overnight RateHow the Bank Rate Affects Consumer Interest Rates What is a Bank Rate?A bank rate refers to the interest rate that the central bank charges commercial and...

Bank Stress Test – Explained

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

Update Table of Contents What is a Bank Stress Test?How Does a Bank Stress Test Work?Impact of Stress Tests What is a Bank Stress Test?A bank stress test is an analysis conducted using weak and unfavorable economic situations to predict how banks are likely to perform...

Balance Sheet – Explained

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

What is the Balance Sheet?A balance sheet is a report or statement containing all the assets, liabilities and shareholders’ equity owned by a business at a specific time. Balance sheet is important in financial accounting, it is the financial statement that...

Contributed Capital – Explained

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

What is Contributed Capital?Contributed capital refers to the funds invested in a company by owners in exchange for company ownership (a number of a company’s stock).  Contributed capital is otherwise called paid-in-capital.How does Contributed Capital Work?On a...

Contra Account – Explained

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

What is a Contra Account?A contra account is an account whose balance is the opposite of a corresponding account. In finance, a contra account reduces the value of related or corresponding account. It offsets the balance of the related account, which means when the...