How the Q Ratio – Tobin’s Q Works.

The Q ratio is a measure of the market value of a company’s assets relative to the replacement cost of those assets. The ratio is also known as Tobin’s Q. The Q ratio is named after James Tobin, a Nobel Prize-winning economist who developed the measure in 1969. Tobin’s motivation for creating the ratio was … Read more

What Is FATCA?

The Foreign Account Tax Compliance Act (FATCA) is a U.S. federal law that requires U.S. persons who have financial interests in foreign countries to disclose those interests to the Internal Revenue Service (IRS). FATCA was enacted in 2010 in an effort to combat tax evasion by U.S. taxpayers with foreign accounts. FATCA requires financial institutions … Read more

What is a letter of change?

The bill of exchange is a title of credit with which one person orders another to pay a monetary amount on a certain date. It is a commercial document that expresses an unconditional order to pay a borrower or beneficiary of a sum of money, in a place and with a specific expiration date. At … Read more