Brian Beers

Risk measurement is a very big component of the finance industry. While it plays a role in economics and accounting, the impact of accurate or faulty risk measurement is most clearly illustrated in the investment sector. Knowing the probability that […]

What Is Interest on Interest? Interest on interest—also referred to as compound interest—is the interest earned when interest payments are reinvested. Compound interest is commonly used in the context of bonds. Coupon payments from bonds are assumed to be reinvested

At some point for newer investors, an enticing opportunity comes to mind for dividend-paying stocks: Why not buy some shares right before the dividend, collect the money, and then sell them? At first glance, this strategy appears terrific in its

Typically, the ask price of a security should be higher than the bid price. This can be attributed to the expected behavior that an investor will not sell a security (asking price) for lower than the price they are willing to pay for it

What Are Current Liabilities? Current liabilities are a company’s short-term financial obligations; they are typically due within one year. Examples of current liabilities are accrued expenses, taxes payable, short-term debt, payroll liabilities, and dividend payables, among others. Current liabilities are

The health of the financial services sector is integral to the overall level of global economic activity. For this reason, the major macroeconomic indicators are also very important pieces of data for the outlook of this sector. Financial services companies

What Is a Hostile Takeover? A hostile takeover happens when an acquiring company moves forward with buying another company, the target company, despite objections from the target company’s board of directors. Some of the most noteworthy examples of hostile takeovers

Inflation is the rate at which the general level of prices for goods and services rises and results in a decrease in the purchasing power of a country’s currency. There are two common measures of inflation: the consumer price index (CPI),

CAPEX vs. Current Expenses: An Overview Current expenses are the necessary purchases that keep a business going from day to day, such as rent, utility bills, and office supplies. Meanwhile, capital expenditures, or CAPEX, are considered asset purchases, or long-term

A shutdown point is a concept in managerial economics that suggests a business should at least temporarily stop production and close its doors because it’s no longer profitable to sustain operations. This theory grew out of the neoclassical models of