This Gearing Doesn’t Mean Faster or Slower.

This gearing doesn’t mean faster or slower. It just means that the company’s debt is higher than its equity. So, if the company’s assets are $1,000 and its liabilities are $500, its gearing ratio is 50%. Is high gearing good? High gearing is generally considered to be a good thing, as it allows a company … Read more

Tax Shelter Definition.

A tax shelter is an investment or arrangement designed to minimize or defer taxes. The term can also refer to a legal entity created for the purpose of tax avoidance or evasion. The term “tax shelter” is most commonly used in reference to investments, such as real estate, that are used to minimize or defer … Read more

What Is Tender in Finance?

How It Works, With Example. Tender in Finance: How It Works, With Example. What is the difference between a merger and a tender offer? A merger occurs when two companies combine to form a new company, while a tender offer is when one company makes an offer to buy another company. In a merger, both … Read more