Refi bubble

refi-bubble

Refi bubble is referred to such a period when a significant number of existing mortgages are refinanced to take advantage of the drop in interest rates. A typical refi bubble is seen in the Real Estate market for home mortgages. According to Federal Reserve Bulletin in 2001 – 2003 an incredible number of mortgages are … Read more

Market

market

Market is a physical place or a virtual place accessible through the internet where sellers and buyers of particular products or services can interact directly or through intermediaries to trade at prices determined by the forces of demand and supply. Market facilitates a transaction to take place. It should have the potentials of (1) convenient … Read more

Accelerated depreciation

accelerated-depreciation

Accelerated depreciation method is a depreciation method that charges major portion of the cost of assets in earlier years and minor portion in later years of assets life. This depreciation method defers tax liabilities in earlier years of assets life since higher depreciation expense reduces taxable income. The logic behind the accelerated depreciation method is … Read more

Payroll

payroll

Primarily, Payroll refers to “the list of all employees of an organization or company”. Nowadays it became a polysemic word. It has some other meanings too, these are: Payroll means the employees of an organization, along with their information. Payroll is the total amount of money an organization pays to its employees during each pay … Read more

Finance

finance

Finance is the discipline of study that basically deals with money, management of money, and the value of money over time. It teaches us how to obtain the required fund at least possible cost and how to invest our available resources for maximum possible return. Finance intends to price assets based on their Rate of … Read more

Project

project

Project is a limited-time venture, planned with a set of tasks to achieve the desired goal or goals which are not available now. The desired goal could be a product, service, result, business model or a strategy. In today’s competitive and technological advanced business environment it could be anything. Project and routine operations are not … Read more

Mortgage

home-mortgate

Simply, a mortgage is a loan to purchase your home. A bank or mortgage lender gives you money to buy your dream house. Sounds great, huh! When you decided to buy a house and have decent monthly income but you could not pay the entire value now, then the bank or mortgage lenders come like … Read more

CPA – Certified Public Accountant

become-a-cpa

Certified Public Accountant or CPA is a professional accounting degree. From another perspective, CPA is the license to provide accounting services to public. In many English speaking countries, CPA is the title for qualified accountants who provide business and financial consulting services. In United States, to become a CPA you must fulfill the ‘3E’ requirement. … Read more

Financial Leverage

Financial leverage is the degree to which an entity uses interest-bearing debt to finance its assets. The higher the share of debt financing in the capital structure of the company, the higher the financial leverage and also the financial risk. A high proportion of financial debt also means high-interest payments. Which may have a negative … Read more

EBITDA

EBITDA stands for Earnings before Interest, Taxes, Depreciation, and Amortization. It refers to the earnings of a company before interest, taxes, depreciation, and amortization are deducted. That is, it is understood as the gross operating profit calculated before the deduction of financial expenses and accounting deductions. Although it is not part of the income statement … Read more