Banking checks are a great instrument for any transaction as they are easy to use and offer a secure way to transfer money. Non-negotiable checks are an even more secure form of banking check, as they cannot be transferred or negotiated further. Non-negotiable checks will include the phrase “non-negotiable” on …

A transaction between two parties involves some form of compensation. For most businesses, it occurs through cash or bank payments. In most cases, these payments happen when a customer buys a product or service from a supplier or at a later date. Sometimes, however, customers may also pay in advance …

Every market may contain uncertainty due to the inflation prevalent in the country. Usually, inflation increases, impacting investment strategies for investors. Investors around the world aim to invest in assets that can help protect against the rise in inflation in their respective countries. Therefore, they also contemplate their investment strategies …

Every individual, business, or organization that wants to open a bank account, needs to determine the correct title of the account. Bank account titles can range from simple – such as “John Smith” or “ABC Corporation” – to more complex, depending on the type of ownership and other factors. A …

Variations can exist in any process. In finance, identifying and analyzing these variations falls under management accounting. Companies may use several tools to achieve that. One of these includes the exception report. However, its application is not limited to the financial field. It can be beneficial in other areas as …

A swap is an agreement or contract between two parties that allows them to exchange cash flows from different underlying instruments. This agreement is the basis for the derivative contract between the parties involved. Based on underlying assets, the swap agreement may fall into different types. However, the tax treatment …

When it comes to the stock market, the average trade price is an important metric to consider. It reflects the average cost of one share of a certain stock over a specific period. This number can be useful in understanding how much investors have paid for that particular stock throughout …

Investors select assets based on the returns they provide. This return may come in different forms based on the underlying investment. For example, for stocks, it may include dividends and capital gains. For debt instruments, it consists of the interest received. The combined return from underlying investments is known as …

In every business venture, it is important to incorporate a margin of safety when calculating risks and rewards. This buffer allows investors to protect their investments from any unexpected losses and maximize profits in the long run. A margin of safety is the difference between the estimated intrinsic value of …

A bond’s value may fluctuate depending on various factors. Sometimes, these factors can be internal. However, external factors play a more prominent role in the changes. There are several metrics to measure this sensitivity, including PV01 and DV01. Both methods differ in their application. Before understanding the differences between the …