Appreciation
Investorline In accounting, ‘appreciation of an asset is an increase in its value. In this sense it is the reverse of depreciation, which measures the fall in value of assets over…
Types of Bond
The following descriptions are not mutually exclusive, and more than one of them may apply to a particular bond. Fixed rate bonds have a coupon that remains constant throughout…
Amortization
Amortization (or amortisation) is the process of decreasing, or accounting for, an amount over a period. The word comes from Middle English amortisen to kill, alienate in mortmain, from Anglo-French…
Aging
A process where accounts receivable are sorted out by age (typically current, 30 to 60 days old, 60 to 120 days old, and so on.) Aging permits collection efforts to…
Accounting period
Accounting period in bookkeeping is the period with reference to which accounting books of any entity are prepared. It is the period for which books are balanced and the financial…
Accrual
Accrual (accumulation) of something is, in finance, the adding together of interest or different investments over a period of time. It holds specific meanings in accounting, where it can refer…
International standard (Finance)
International standards are standards developed by international standards organizations. International standards are available for consideration and use, worldwide. The most prominent organisation is the International Organization for Standardization. International standards…
The Modigliani-Miller theorem
The Modigliani-Miller theorem forms the basis for modern thinking on capital structure. The basic theorem states that, in the absence of taxes, bankruptcy costs, and asymmetric information, and in an…
What is Beta?
In finance, the Beta (β) of a stock or portfolio is a number describing the relation of its returns with those of the financial market as a whole. An asset…
What is meant by OTC?
Over-the-counter (finance) Within the derivatives markets, many products are traded through exchanges. An exchange has the benefit of facilitating liquidity and also mitigates all credit risk concerning the default of…