Start Trading Forex Now!

Q: do you know what the "implicit rental rate" is?

Category: glossary , Asked by: T. Parrish from Odessa, United States

A: The opportunity costs that a firm incurs as a result of using their own assets for ongoing operations instead of other alternative uses. The implicit rental rate can be either greater than or less than the firm's cost of capital. In the event that the implicit rental rate is lower than the firm's cost of capital, then the firm is not likely to be in business for very long. This is because the firm's cost to operate its assets, as measured by its cost of capital, is greater than the firm's best alternative use for those assets. Visit ODL Securities Inc.

    do you know what the "quarterly earnings report" is?

    Category: glossary by S. Cox from Honolulu, United States

    A quarterly filing made by public companies to report their performance. Included in earnings reports are items such as net income, earnings per share, earnings from continuing operations and net sales. These reports follow the end of each quarter. Most companies file in January, April, July and October. An earnings report is a'report card' of sorts for a public companies. It is through these reports that companies let shareholders know how well they have performed over the past time period. Most often the key metrics - net income and EPS - are weighed against the previous years' numbers. By analyzing this comparison, investors can begin to gauge the financial health of the company and whether or not it deserves their investment.

    do you know what the "non-marketable security" is?

    Category: glossary by Katrina Y. From Cork, Ireland

    Any type of security that is difficult to buy or a sell because it does not trade on a normal market or exchange. These types of securities trade over the counter (OTC) or in a private transaction. Finding a party with which to transact business is often difficult; in some cases, these securities can't be resold due to regulations surrounding the security. Some examples of non-marketable securities are savings bonds, series (A, B, EE, etc.) bonds and private shares. The U.S. Government offers both marketable and non-marketable securities to the public. Marketable securities, such as treasury bills and bonds can be purchased and resold to the public. But non-marketable securities, such as savings bonds must be held by the holder until maturity and can't be resold to another party. Limited partnership (LP) interests are often difficult, if not impossible to resell.

    please define the "wash-out round"

    Category: glossary by Brynn G. From United States

    "wash-out round " is A common round of financing to owners of small companies that are not yet financially stable. When such financing is done, the new issuance serves to dilute drastically the ownership of previous investors and owners. Often, the new investors are able to take control of the company because the previous owners are in desperate need of more financing to avoid bankruptcy. Also know as "burn-out round" or "cram-down round". The wash-out round is often the final financing opportunity available to entrepreneurs before a company is forced into bankruptcy. Wash-out rounds often occur when companies are unable to achieve performance levels that have been set in order to receive additional financing from investors. Wash-outs occurred during the dotcom craze of the late 1990s when many companies were significantly overvalued.

Ask a question

Full name:
Email:
Country:
Human?
Question:
Featured Question
    do you know what the "chaos theory" is?
    A mathematical concept that explains that it is possible to get random results from normal equations. The main precept behind this theory is the underlying notion of small occurrences significantly affecting the outcomes of seemingly unrelated events. Also referred to as "non-linear dynamics". Chaos theory has been applied to many different things, from predicting weather patterns to the stock market. Simply put, chaos theory is an attempt to see and understand the underlying order of complex systems that may appear to be without order at first glance. Related to financial markets, proponents of chaos theory believe that price is the very last thing to change for a stock, bond, or some other security. Price changes can be determined through stringent mathematical equations predicting the following factors: 1) A trader's own personal motives, needs, desires, hopes, fears and beliefs are complex and nonlinear. 2) Volume changes 3) Acceleration of the changes 4) Momentum behind the changes Chaos theory is highly controversial and extremely complicated. Visit EToro USA

    Searching for forex software systems, info on forex trading and forex money management? Find out about foreign exchange providers like EToro USA, ACM or Finexo Ltd.; controlled by NFA(US), FSA(GB) and CBRC(China); for deutsch, spanish, russian, french or arabic speakers. Find a palm computer compatible system or an array of educational tutorials.