The Investopedia Team

The capital-to-risk weighted assets ratio, also known as the capital adequacy ratio, is one of the most important financial ratios used by investors and analysts. The ratio measures a bank’s financial stability by measuring its available capital as a percentage of […]

The Value of Live Meetings Carefully going through a company’s financial statements is a good way to research a possible investment. But meeting members of a company’s management team and/or participating in an investor conference call can give you added

What Is Intellectual Property in Terms of a Capital Asset? Some types of intellectual property are considered capital assets and may be recorded on a company’s balance sheet as intangible assets. Intellectual property is a fairly broad term and can

Social Security isn’t just for retirement. It also provides benefits to the dependents of covered workers, including spouses, dependent parents, children, and grandchildren. Ex-spouses may also qualify under certain circumstances. How much a dependent receives is determined by their relationship

There are differences between how the U.S. Generally Accepted Accounting Principles (GAAP) and the International Financial Reporting Standards (IFRS) treat unusual or infrequent income or expense items, also known as nonrecurring. Irregular items are occurrences unrelated to a business’s operational

Social Security is a federal program in the United States that provides taxpayers with certain benefits, including retirement and disability income. Medicare, Medicaid, and death and survivorship benefits are also part of the Social Security program. Social Security taxes are

Accounting vs. Economics: An Overview Accounting is a profession that records, analyzes, and reports income and expenses for individuals and businesses. Economics is a branch of social sciences concerned with production, consumption, and market forces. An economist uses data to

Interest rates typically decline during recessions as loan demand slows, bond prices rise, and the central bank eases monetary policy. During recent recessions, the Federal Reserve has cut short-term rates and eased credit access for municipal and corporate borrowers. Key

A recession is a significant, persistent, and widespread contraction in economic activity. Since the Great Depression, the United States has suffered 14 official recessions. Here, we break down each one. Key Takeaways A recession is an economic downturn that typically

Gearing ratios form a broad category of financial ratios, of which the debt-to-equity ratio is the predominant example. Accountants, economists, investors, lenders, and company executives use gearing ratios to measure the relationship between owners’ equity and debt. Gearing ratios are