Balance Sheet Definition
The balance sheet is a key financial statement that public and private companies report on. It highlights a firm’s assets, liabilities, and equity.
Finance
Income Statement Definition
The income statement details the firm’s revenue and expenses during a period of time. Also known as a ‘profit and loss statement’, it highlights how much the firm has sold and how much it has spent.
EBITDA Definition
EBITDA stands for Earnings Before Interest, Tax, Depreciation, and Amortization. It is a useful financial metric which is found an a companies income statement.
Retained Earnings Definition
What are Retained Earnings Retained Earnings Formula Retained Earnings Explained Example of Retained Earnings Retained Earnings on Balance Sheet Retained Earnings vs Profit Limitations of Retained Earnings Retained Earnings Definition WRITTEN BY PAUL BOYCE | Updated 14 July 2022 What are Retained Earnings Retained earnings account for the net income of a business minus any …
Equity Definition
Equity refers to the value of an individuals ownership over an asset where there is an associated debt or other liability. In other words, it’s the value which is left over after any financial obligations are taken into consideration.
Common Stock Definition
Common stock is a financial asset which represents ownership of a company. Those who have common stock have voting rights and an ability to have a say in how the company is run.
Preferred Stock Definition
A preferred stock is a type of stock which receives preferential treatment over common stock owners. It is often seen as a mix between a bond and a stock.
Net Income Definition
Net income (NI) is the amount of income an individual or business receives, minus any expenses. For individuals, this takes into account expenses such as tax, pension contributions, and student loan re-payments.
ETF Definition
Exchange-traded funds, known as ETFs, is an investment fund which offers shares on the stock-market. Generally, ETFs specialize in indexes such as the FTSE 100.
Floating Exchange Rate Definition
A floating exchange rate is where the value of a nation’s currency, when compared to another, is determined by supply and demand. There are millions of traders across the world who buy and sell currencies which helps dictate its value in relation to others.
