Advance Decline Line Ratio – Explained

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

What is an Advance/Decline Line (A/D)?The advance/decrease line is an indicator used in the stock market that shows the magnitude or volume of the stock market, it reflects the cumulative number of stocks that are declining or rising over a period of time. The...

Accumulated Fund – Explained

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

Update Table of Contents What is an Accumulated Fund?How is an Accumulated Fund Used?Academic Research for Accumulated Fund What is an Accumulated Fund?An association, charity, club, or any non-profit organization can have an accumulated fund. Money goes into the...

ABC Agreement – Explained

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

What is an ABC Agreement?An ABC Agreement refers to a contract holding between an investment house and an employee. An investment house is also known as a brokerage firm while an employee is known as the broker of an investment house. The contract contains the...

Abnormal (Inventory) Shrinkage – Explained

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

What is Abnormal Shrinkage?Inventory shrinkage, or contraction, is used to describe inventory loss. For instance, if a retailer’s inventory records report that there are 3,261 units of Product X available, but a physical count shows that only 3,248 are...

Above Market Cost (Market Trading) – Explained

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

What is Above the Market Cost?Above the market is an order to either buy or sell at a price that is higher than the current market price. Excessive markets refer to orders which are bought, as well as, sold at prices that are higher than the current market price....

Retained Earnings (Accounting) – Explained

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

What are Retained Earnings?Retained earnings, also known as Accumulated Earnings or Accumulated Earnings and Profits, can be defined as a company’s accumulated surplus or profits after paying out the dividends to shareholders. Generally, Retained earnings...

Roth IRA – Explained

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

What is a Roth IRA?Roth IRA is a special retirement plan that offers valuable tax benefits. Named after Delaware Senator William Roth, Roth IRA was established by the Taxpayer Relief Act of 1997. It offers tax benefits to encourage individuals to save. It offers...

Rate of Return – Explained

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

What is a Rate of Return?Rate of Return (RoR) refers to the net profit or loss of an investment over a period expressed as a proportion of the original cost of an investment. Profits are the income realized from the sale of an investment plus the capital gains. A loss...

Weighted Average Cost of Capital – Explained

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

What is Weighted Average Cost of Capital?The weighted average cost of capital (WACC) commonly known as the company’s cost of capital, is a method that investors use to assess their investments returns in a company. Debt and equity are two major components that...

Yield to Maturity – Explained

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

What is a Yield To Maturity?Yield to maturity (YTM) refers to the total return someone earns when he or she purchases a bond and holds it to the maturity date. The YTM is also referred to as, book yield or internal rate of return. This type of bond yield is long-term...