Return on Investment (ROI) – Explained

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

What is Return on Investment?Return on investment (ROI) is a profitability ratio used for measuring the amount of profit generated by an investment relative to its cost. It evaluates the cost efficiency of an investment and is expressed as a percentage or ratio.How to...

Return on Assets – Explained

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

What is Return on Assets?Return on Assets or ROA measures the profitability of a business in relation to its overall assets. It allows a company to estimate how efficiently the assets of the company are being used for generating revenue. Return on Assets is a type of...

Request for Proposal – Explained

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

What is a Request for Proposal?A Request for Proposal is a document issued by companies or organizations inviting qualified vendors (or service providers) to bid for an available project or program.How a Request for Proposal WorksThe organization or the company...

Reprice (Stock Options) – Explained

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

What does it mean to Reprice Stock Options?Repricing is a strategy of replacing the worthless stock options held by employees with new options. Companies use this strategy to deal with underwater stock options. Underwater stock options are those whose exercise price...

Regulation C (Mortgage Lending) – Explained

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

Update Table of Contents What is Regulation C?How Does Regulation C Work? What is Regulation C?In the U.S., Regulation C implements the Home Mortgage Disclosure Act of 1975 that mandates certain financial institutions disclose mortgage data to the public. The...

Redlining (Discrimination) – Explained

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

Update Table of Contents What is Redlining?How Does Racial Redlining Work? What is Redlining?Redlining is an unethical and unlawful discriminatory practice of systematic denial of services to a certain race or ethnic group. The term is used for describing a situation...

Recapitalization – Explained

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

What is Recapitalization?Recapitalization is a financial strategy of readjustment of a company’s capital structure by exchanging one type of financing for other. It is generally done with an objective of optimizing leverage and stabilizing the capital finance...

Real Effective Exchange Rate (REER) – Explained

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

What is the Real Effective Exchange Rate? The Real Effective Exchange Rate (REER) is the weighted average of a country’s currency against a basket of other major currencies (after adjusting for inflation differentials). The REER is expressed as an index number...

Housing Policy Counsel – Explained

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

Update Table of Contents What is the Housing Policy Council?How Does the Housing Policy Council Work?The HPC and the HOPE NOW Alliance What is the Housing Policy Council?The Housing Policy Council (HPC), created in 2003, is a non-profit organization based in...

Housing and Economic Recovery Act – Explained

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

Update Table of Contents What is the Housing and Economic Recovery Act?How Does the Housing and Economic Recovery Act Work? What is the Housing and Economic Recovery Act?The Housing and Economic Recovery Act (HERA) came into being as a countermeasure to recover the...