Buy and Hold (Investing Strategy) – Explained

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

What is a Buy and Hold Investing Strategy?Buy and hold refers to a passive investment strategy where the investor tends to buy stocks and hold them for a long time irrespective of the market fluctuations. The person who is ready to invest in buy and hold investment...

Buy-Stops Above – Explained

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

What are Buy Stops Above?Buy Stops Above is a form of trading strategy where an investor is of the view that the price of a stock will increase at a certain point of time after it passes a certain phase of resistance. In this strategy, an investor prefers to place a...

Buy-Write (Options) – Explained

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

What are Buy-Write (Options)?Buy-write is an options-based strategy in which an investor buys a stock, and at the same time, sells a call option on that very stock or asset. In this way, he/she can earn option premium, and hence, create income. Since the underlying...

Buyback Ratio – Explained

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

What is a Buyback Ratio? Buyback ratio refers to the money that an organization pays to buy back its own common shares over the previous year divided by the market capitalization at the period when buyback starts. This ratio clearly helps in identifying and comparing...

Buydown (Mortgage) – Explained

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

Update Table of Contents What is a Buydown of a Mortgage?How Does a Buydown Work?Buydown Structuring3-2-1 Buydown2-1 Buydown What is a Buydown of a Mortgage?A buydown refers to a technique used for mortgage financing in which the buyer tries to receive a lesser...

Ideation – Explained

by TheBusinessProfessor | Feb 23, 2025 | Strategy, Entrepreneurship, & Innovation

What is Ideation?Ideation is the process of forming ideas and recognizing the ideas generated. Processes involved in how ideas are formed might include conception of the idea, the sequence of thoughts that are invested in forming the idea, and thoughts on how the idea...

Multiple Discriminant Analysis – Explained

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

What is Multiple Discriminant Analysis?Multiple discriminant analysis (MDA) is a statistical measure that financial planners use to ascertain the prospective investments when a lot of variables need to be considered. It minimizes the dissimilarity between many...

Income Tax – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is Income Tax?An income tax refers to the amount of money that individuals and businesses are mandated to pay on income earned and profits made. There is no fixed rate for income tax, rather, the amount paid differs from person to person and business to business....

Income Statement (P&L Statement) – Explained

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

What is an Income Statement?An income statement is a financial statement that states the losses incurred and profits accrued by a company over a period of time. Note: The income statement is also known as the Profit and Loss statement, P&L Statement, expense...

Income Exclusion Rule – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Taxation

What is the Income Exclusion Rule?In a tax system, an income exclusion is defined as a rule that distinguishes taxable income from non-taxable income. In the United States, the Internal Revenue Service developed the concept of income exclusion, there are certain...