Month: May 2020

A non-interest-bearing current liability (NIBCL) is a category of expenses that an individual or a company must pay off within the calendar year but will not owe interest on. Taxes that do not include late penalties as well as accounts payable are examples of NIBCLs that can be found on a company’s balance sheet.

The Treynor ratio, also known as the reward-to-volatility ratio, is a performance metric for determining how much excess return was generated for each unit of risk taken on by a portfolio.

There ain’t no such thing as a free lunch (TANSTAAFL), also known as there is no such thing as a free lunch (TINSTAAFL), is an expression that describes the cost of decision-making and consumption. The expression conveys the idea that things appearing free always have a cost or that nothing in life is truly free.

Listed is being included and traded on a given exchange. Most exchanges have specific requirements which companies must meet in order to be listed and continue to stay listed.

Value at risk (VaR) is a statistic that measures and quantifies the level of financial risk within a firm, portfolio or position over a specific time frame. This metric is most commonly used by investment and commercial banks to determine the extent and occurrence ratio of potential losses in their institutional portfolios.

The International Finance Corporation (IFC) provides financing of private-enterprise investment in developing countries around the world, through both loans and direct investments. Affiliated with the World Bank, it also provides advisory services to encourage the development of private enterprise in nations that might be lacking the necessary infrastructure or liquidity for businesses to secure financing.

An externality is an economic term referring to a cost or benefit incurred or received by a third party. However, the third party has no control over the creation of that cost or benefit.

The North American Securities Administrators Association (NASAA) is an organization of securities regulators whose aim is to protect investors from fraud. Founded in 1919 in Kansas, its membership of 67 securities administrators from across North America works to protect customers of investment advice or securities as part of a complementary regulatory system that works at the federal, state/provincial and industry levels.

Quarterly revenue growth is an increase in a company’s sales in one quarter compared to sales of a different quarter. The current quarter’s sales figure can be compared on a year-over-year basis (e.g., 3Q sales of Year 1 compared with 3Q sales of Year 2) or sequentially (3Q sales of Year 1 compared with 4Q sales of Year 1). This gives analysts, investors, and additional stakeholders an idea of how much a company’s sales are increasing over time.

A junior mortgage is a mortgage that is subordinate to a first or prior (senior) mortgage. A junior mortgage often refers to a second mortgage, but it could also be a third or fourth mortgage (e.g. home equity loans or lines of credit (HELOCs)). In the case of a foreclosure, the senior (first) mortgage will be paid down first.