Discount for Lack of Marketability (Stock) – Explained

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

What is a Discount for Lack of Marketability?The Discount for Lack of Marketability, often called a liquidity discount, is a fixed amount or percentage deducted from the selling price of a block of shares that lacks marketability. These are the closely held or...

Lack of Control Discount (Stock) – Explained

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

What is a Discount for the Lack of Control?A Discount for Lack of Control is a fixed amount or percentage deducted from the selling price of a block of shares. The amount is deducted from the share value because that block of shares lacks some or all powers of control...

Discount Share (Stock) – Explained

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

What is a Discount Share (Stock)?These are the stocks issued in the market to be sold for less than its nominal value or par value. It also refers to selling shares below the fair market value. The nominal value or par value of a share is the minimum price for a...

Debt Financing – Explained

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

What is Debt Financing?Businesses can raise operational capital (or other sorts of capital) by selling debt instruments like bonds, debentures, and other types of debt security. The act of raising capital by selling debt instruments is called debt financing. The...

Debenture – Explained

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

What is a Debenture?A debenture is a form of debt instrument used by companies for borrowing money. In the US a debenture is not backed by any physical asset or collateral; rather, it is secured on the borrowers reputation and credit history. In the UK, in contrast, a...

Days Sales Outstanding – Explained

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

What is Days Sales Outstanding?Days Sales Outstanding is the average collection period of a company. Days Sales Outstanding is also known as “days receivable”, “average collection period”, or “average debtor days”. It is calculated...

Days Payable Outstanding – Explained

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

What is Days Payable Outstanding?Days Payable Outstanding is an efficiency ratio indicating the average number of days a company takes to pay its bills and invoices. A company needs to make payments to suppliers, vendors, and other companies on a regular basis for the...

Days Inventory Outstanding – Explained

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

What is Days Inventory Outstanding?Days inventory outstanding, also known as days sales of inventory, days inventory, days cover or stock cover, is an efficiency ratio representing the average number of days worth of products remain in the inventory of a company...

Daily Active Users – Explained

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

What are Daily Active Users?The number of unique users interacting with an online product on a given day is calculated as the daily active users. It is a way to measure the success of an online product, be it an online game, social networking site or online...

Duty Drawback – Explained

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

What is a Duty Drawback?Duty drawback, also known as simply the drawback, is a trade program established in the U.S. that allows importers, exporters, and manufacturers to claim a refund of certain duties, taxes, and certain fees paid as importation charges....