Month: March 2020

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Investments glossary

Capitalization

Capitalization is an accounting method in which a cost is included in the value of an asset and expensed over the useful life of that asset, rather than being expensed in the period the cost was originally incurred. In finance, capitalization refers to the cost of capital in the form of a corporation’s stock, long-term debt, and retained earnings. In addition, market capitalization refers to the number of outstanding shares multiplied by the share price.

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Drugs

What is the current treatment for coronavirus “COVID-19”?

As of writing this blog post March 3rd 2020, there isn’t an official drugs that can cure coronavirus yet, the world of medicine are busy at work on finding the drug to cure it. The best only solution we have today is isolate or also known as quarantine those that are infected.

For those that afraid of getting it, and how to avoid getting it is below.

Wash your hands often with soap and water for at least 20 seconds, especially after going to the bathroom; before eating; and after blowing your nose, coughing, or sneezing.
If soap and water are not readily available, use an alcohol-based hand sanitizer with at least 60% alcohol. Always wash hands with soap and water if hands are visibly dirty.
Avoid touching your eyes, nose, and mouth with unwashed hands.
Avoid close contact with people who are sick.
Stay home when you are sick, and keep children home from school when they are sick.
Cover your cough or sneeze with a tissue, then throw the tissue in the trash.
Clean and disinfect frequently touched objects and surfaces using a regular household cleaning spray or wipe. read more

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Investments glossary

Treasury Bond (T-Bond)

Treasury bonds (T-bonds) are government debt securities issued by the federal government that have maturities greater than 10 years. T-bonds earn periodic interest until maturity, at which point the owner is also paid a par amount equal to the principal. Treasury bonds are part of the larger category of U.S. sovereign debt known collectively as treasuries, which are typically regarded as virtually risk-free since they are backed by the U.S. government’s ability to tax.

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Investments glossary

Tragedy Of The Commons

The tragedy of the commons is an economic problem in which every individual has an incentive to consume a resource at the expense of every other individual with no way to exclude anyone from consuming. It results in overconsumption, under investment, and ultimately depletion of the resource. As the demand for the resource overwhelms the supply, every individual who consumes an additional unit directly harms others who can no longer enjoy the benefits. Generally, the resource of interest is easily available to all individuals; the tragedy of the commons occurs when individuals neglect the well-being of society in the pursuit of personal gain.

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Investments glossary

Brand Awareness

Brand awareness is a marketing term that describes the degree of consumer recognition of a product by its name. Creating brand awareness is a key step in promoting a new product or reviving an older brand. Ideally, awareness of the brand may include the qualities that distinguish the product from its competition.

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Investments glossary

Writ of Seizure and Sale

A writ of seizure and sale is an order issued by a court that allows the petitioner (usually a creditor) to take ownership of a property from a borrower. Once the property has been seized by the creditor, it can be sold usually at auction. Writs of seizure and sale are used to take possession of the property when a borrower has failed to make payments on the debt or loan for an extended period of time.

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Investments glossary

Group of 3 (G3)

Group of 3 refers to a ten-year free trade agreement between Mexico, Colombia and Venezuela that began in 1995 and lasted until 2005. The pact covered numerous issues including intellectual property rights, public-sector investments and the easing of trade restrictions.

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Investments glossary

Wash-Out Round

A wash-out round (also known as burn-out round or cram-down deal) is when a round of new financing usurps control of previous equity holders. When such financing is done, the new issuance drastically dilutes the ownership stake of previous investors and owners. New investors are thus able to take control of the company because the previous owners are in desperate need of more financing to avoid bankruptcy. Wash-out rounds are most often associated with smaller companies or with startup ventures that lack financial stability or a strong management team.

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Investments glossary

Gross Spread

Gross spread is the difference between the underwriting price received by the issuing company and the actual price offered to the investing public. The gross spread is the compensation that the underwriters of an initial public offering (IPO) make to cover expenses, management fees, commission (or takedown) and risk. The majority of profits that the underwriting firm earns through the deal are often achieved through the gross spread. In addition to the gross spread, an initial public offering typically involves fixed costs, such as legal and accounting consultants and registration fees.

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Investments glossary

Lower of Cost or Market Method

The lower of cost or market (LCM) method states that when valuing a company’s inventory, it is recorded on the balance sheet at either the historical cost or the market value. Historical cost refers to the cost at which the inventory was purchased.