Capital Asset Pricing Model
The Capital Asset Pricing Model (CAPM) is a financial model used to estimate the expected return on an investment based on its systematic risk and the overall market conditions.
Finance
The study of money, currency, and assets. More specifically, it looks at how these financial instruments are managed. It covers areas such as public, private, and corporate finance.
Credit Default Swap
A credit default swap (CDS) is a financial derivative that offers protection against the risk of default on a debt instrument.
Bull Market
A bull market is a financial market where prices of securities are generally rising, indicating positive investor sentiment and a favorable economic outlook.
Capital Gains Tax
Capital gains tax is a tax imposed on the profit realized from the sale of a capital asset, such as stocks, real estate, or businesses.
Depreciation
Depreciation is an accounting method that allocates the cost of an asset over its useful life to reflect its gradual decrease in value or usefulness.
Adjusted Gross Income
Adjusted gross income refers to an individual’s total income from all sources, minus specific deductions and exemptions, and serves as the starting point for calculating taxable income.
Current Ratio
The current ratio is a financial metric that measures a company’s ability to meet its short-term liabilities with its short-term assets.
Due Diligence
Due diligence is a comprehensive investigation and analysis process conducted to assess risks, verify information, and evaluate the viability and potential value of a transaction or decision.
Earnest Money
Table of Contents What is Earnest Money? Purpose of Earnest Money How Much Earnest Money is Required? Is Earnest Money Refundable? The Earnest Money Deposit Process What Happens to Earnest Money at Closing? Potential Risks and Protections in Earnest Money Examples of Earnest Money Transactions FAQs Earnest Money: Definition, Purpose & Examples Written by Paul
Fico Score
A FICO score is a numerical representation of an individual’s creditworthiness, calculated based on factors such as payment history, credit utilization, and length of credit history.
