Accelerated Cost Recovery System (ACRS) – Explained

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

What is Accelerated Cost Recovery System?Accelerated Cost Recovery System, or ACRS, is an accounting method for depreciating assets When using ACRS, a company assigns each asset an expected class life. The class life is the period over which a company will depreciate...

Private Investment in Public Equity – Explained

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

What is a Private Investment in Public Equity?A private investment in public equity (PIPE deal) is when a public company sells some of its shares (either common shares or preferred shares) directly to private investors – rather than selling the shares to the...

Payment in Kind – Explained

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

What is Payment-In-Kind?When we use products or services to make a payment in place of cash, it is said to be a PIK (Payment-in-Kind). It also means a financial tool that makes payment of dividends or interest to the stockholders of notes, certificates, bonds, and...

Churn Rate – Explained

by TheBusinessProfessor | Feb 23, 2025 | SEO, Social Media, Direct Marketing

Update Table of Contents What is Churn Rate?How does a Churn Rate Work? Academic Research on Churn Rate What is Churn Rate?Often, customers see a product, like it, and save it to their shopping cart. But they may not be able to buy it due to any reason. So, they...

Gold Exchange Standard – Explained

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

What is the Gold Standard?The Gold Standard is an exchange system for money or currency that is secured or backed by gold. Countries using this gold exchange standard system has a fixed-rate for this gold and does business with this fixed rate. The gold standard...

Offshore Financial Centers – Explained

by TheBusinessProfessor | Feb 23, 2025 | Global Business, International Law & Relations

What are Offshore Financial Centers?An Offshore Financial Center, otherwise known as an OFC, is defined as a country or jurisdiction that makes available financial services to non residents with the purpose of circumventing aspects of the non-resident’s home...

Investment Grade – Explained

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

What is Investment Grade?Investment grade is a quality designation for a security of financial instrument. The higher the credit rating, the lower the risk of default and vice versa. Default means a failure to pay or live up to the obligations of the instrument. The...

A Posteriori – Explained

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

What is A Posteriori?A posteriori is a Latin phrase that means “from the later.” It refers to knowledge gained following the analysis of an issue. It is the opposite of A Priori, which is knowledge obtained prior an analysis. It is deemed to be...

Price Elasticity of Demand – Explained

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

What is Price Elasticity of Demand?The ratio of change in the quantity of product that is demanded or the product purchased to the change in price is called as Price Elasticity of Demand. Its formula in terms of economics is as follows PED = (dQ/Q) / (dP/P) Economists...

Good Til Cancelled (Investment Order) – Explained

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

What is a Good Til Canceled?Good til canceled (GTC) order is an investment order to buy or sell a security or stock at a specified set price that remains in effect or active until it is executed, or the investor cancels the order. For example, an investor can specify...