Investors need a consistent strategy to analyze stocks for a successful portfolio. Therefore, they use various metrics or ratios to help them in deciding between investments. Usually, investors evaluate how each investment fits into their portfolio. There are several analytical tools that they can use. The two most common types …

A Line of Credit (LOC) is a type of financing arrangement available to businesses and individuals. It has various characteristics and features that provide users with benefits. When it comes to choosing a line of credit facility, there are two prevalent options from which users must choose. These are the …

Usually, companies have the choice to choose between either equity finance or debt finance to fund their operations. While equity finance may not usually involve any conditions, debt finance may come with certain restrictions. It is because debt finance providers will limit the risk they want to take on it. …

For companies and their investors, identifying and reacting to risks is crucial. Some risks are more critical than others. Usually, companies or investors need to investigate those promptly. Among these businesses, risk and financial risk are often prevalent. There are some differences between both, however, which is necessary to understand. …

Costs are an essential part of management accounting. They represent a monetary value that companies or businesses spend on producing a product or service. For advanced analysis, companies may classify their costs based on several factors. For example, companies can categorize them based on nature, element, behaviour, or function. When …

When choosing between various investments, it is necessary to compare them. Whether it is investors or companies, they will face such decisions. There are several aspects of each project they must consider. Similarly, they can use different tools to consider those aspects. One such tool that is prevalent in investing …

What is Opportunity Cost? Opportunity costs refer to the potential benefits that companies or businesses relinquish when choosing one alternative over another. It is a concept that usually applies to economics and financial management. In other words, it represents the value of the next best option when a company chooses …

Banks are a significant part of any country’s economy. Some countries also heavily rely on their financial institutes for their survival. In the case of banks failing, many economies collapse. There are many examples of how banking system failures have affected a country’s or the global economy. Various analytical tools …

What is a Bond? A bond is a fixed-income instrument that refers to a loan made to a borrower by an investor. Usually, the borrower may be a company or a government entity. A bond gives the bondholder an entitlement to a future payment. Usually, companies or government bodies use …

Investors must base their investment decisions on a set of assumptions and inputs. Sometimes, these assumptions may be uncertain and may impact their judgments. This impact comes in the form of investment risk. Therefore, investors may use various tools to assess the influence that these risks have and compare them …