A revenue reserve is a portion of a company's profit that is set aside for a variety of purposes. This reserve is recorded in the profit and loss account and is available for use as follows:
Given the unemployment rate and any major exogenous variables, investors can use the Phillips curve principle to estimate where inflation might go in the short or long term. Knowing that inflation has an inverse relationship with unemployment in the...
CPI is an abbreviation for consumer price index, which is an average of several consumer goods and services used to calculate inflation.
FAANG is an acronym for the five largest companies in the technology sector of the US Stock Market. They are:
Purchasing Google stock is not the only way to invest in the tech giant. Many investors may already own Google stock without realising it. Because Google is a major component of the NASDAQ index, many popular ETFs have exposure to it.
Cash over and short is an income statement account that records errors in cash receipts or payments that result in overages or shortages. In other words, cash over and short is an account that shows the impact of errors in cash collection and payment...
A base rate is the interest rate charged by a central bank, such as the Bank of England or the Federal Reserve, to commercial banks on loans. The base rate may also be referred to as the bank rate or the base interest rate.
A hostile takeover is a type of corporate acquisition in which a company is acquired without the approval of its management. Without friendly negotiations with the target company's management, an acquiring company may see some benefit in owning a...
Capital gains tax (or CGT) is a tax levied by the government on profits made from the sale of financial assets. CGT regulations and levels differ by country.