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Investments glossary

Expanded Accounting Equation Definition

The expanded accounting equation is derived from the common accounting equation and illustrates in greater detail the different components of stockholder equity in a company.

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Investments glossary

Welfare Loss Of Taxation

Welfare loss of taxation refers to the decreased economic well-being caused by the imposition of a tax. It measures the effect of deadweight loss caused by a change in taxes or the tax system.

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Investments glossary

Shareholders’ Agreement

A shareholders’ agreement, also called a stockholders’ agreement, is an arrangement among a company’s shareholders that describes how the company should be operated and outlines shareholders’ rights and obligations. The agreement read more

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Investments glossary

Tax Evasion

Tax evasion is an illegal activity in which a person or entity deliberately avoids paying a true tax liability. Those caught evading taxes are generally subject to criminal charges and substantial penalties. To willfully fail to pay taxes is a federal read more

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Investments glossary

Net Proceeds

Net proceeds are the amount the seller receives following the sale of an asset after all costs and expenses are deducted from the gross proceeds. Depending on the asset sold, the costs may account for a small percentage of the gross proceeds or a read more

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Investments glossary

Enterprise Value-to-Sales – EV/Sales Definition

Enterprise value-to-sales (EV/sales) is a valuation measure that compares the enterprise value (EV) of a company to its annual sales. EV-to-sales gives investors a quantifiable metric of how much it costs to purchase the company’s sales.

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Investments glossary

Annualized Income

Annualized income is an estimate of the sum of money that an individual or a business generates over a year’s time. Annualized income is calculated with less than one year’s worth of data, so it is only an approximation of total income read more

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Investments glossary

Conventional Mortgage or Loan

A conventional mortgage or conventional loan is any type of home buyer’s loan that is not offered or secured by a government entity. Instead, conventional mortgages are available through private lenders, such as banks, credit unions, and mortgage read more

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Investments glossary

Money Flow Index – MFI Definition and Uses

The Money Flow Index (MFI) is a technical oscillator that uses price and volume data for identifying overbought or oversold signals in an asset. It can also be used to spot divergences which warn of a trend change in price. The oscillator moves between read more

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Investments glossary

Agribusiness

Agribusiness is the business sector encompassing farming and farming-related commercial activities. The business involves all the steps required to send an agricultural good to market: production, processing and distribution. It is an important component read more