Naked Call Option – Explained

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

What is a Naked Call Option?A naked call is a call option strategy where a speculator or investor writes (sells) a call option on a security without having the ownership on that underlying security. It is a very risky option strategy as opposed to the covered call...

Net Book Value – Explained

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

What is Net Book Value?In accounting, the book value of an asset is its written down value in the balance sheet after deducting the accumulated depreciation from its purchase cost. The book value of a company is the net worth of the company calculated by deducting the...

Negotiable Order of Withdrawal (NOW) Account – Explained

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

Update Table of Contents What is a Negotiable Order of Withdrawal Account?How Does a NOW Account Work? What is a Negotiable Order of Withdrawal Account?The Negotiable Order of Withdrawal Account, commonly known as NOW account is a deposit account that pays interest...

National Credit Union Association – Explained

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

Update Table of Contents What is the National Credit Union Administration?What Does the National Credit Union Administration Do? What is the National Credit Union Administration?The National Credit Union Administration (NCUA) is an independent agency in the executive...

Bank Examination – Explained

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

Update Table of Contents What is a Bank Examination?How Does a Bank Examination Work? What is a Bank Examination?Bank Examination is a regular inspection of banks (and other depository institutions), conducted periodically by a federal agency appointed by the...

NASDAQ – Explained

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

What is the National Association of Securities Dealers Automated Quotations (NASDAQ)?NASDAQ is an electronic securities marketplace which is the second largest stock exchange in the world in terms of market capitalization, right behind the New York Stock Exchange. The...

New York Stock Exchange – Explained

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

What is the New York Stock Exchange?The New York Stock Exchange is the oldest stock exchange in the United States located at 11 Wall Street, Lower Manhattan, New York City, New York. It was founded in 1792 and by far the largest stock exchange in the world based on...

Nominal Rate of Return – Explained

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

What is Nominal Rate of Return?The Nominal Rate of Return is the rate of return on an investment before factoring in the expenses related to inflations, taxes and investment fees. The dollar amount of the return is compared to the investment amount to get the nominal...

Net Income – Explained

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

What is Net Income?Net income of a business is calculated by deducting all expenses incurred in an accounting period from the total revenue earned in that same period.How is Net Income Used?The operating costs, interests, depreciation, taxes and all other expenses are...

Carried Interest (Finance) – Explained

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

What is Carried Interest?Carried Interest (or carry) is the share of the earnings that the general owners of hedge funds and private equity funds get as compensation when the funds investments are profitable. This compensation method is intended to motivate the...