What Is an Interest Rate Gap?

An interest rate gap is the difference between the interest rates that a financial institution pays on its liabilities and the interest rates that it earns on its assets. The interest rate gap is a key metric for assessing a financial institution’s interest rate risk. A financial institution’s interest rate risk is the risk that … Read more

What is a decision support system (DSS) and how do businesses use them?

What Is a Decision Support System (DSS)? A decision support system (DSS) is a computerized information system used to support decision-making in organizations. DSSs are designed to help decision makers use data and information to solve problems and make better decisions. DSSs are used in a variety of businesses and organizations, including healthcare, government, and … Read more

Sales Mix.

Sales mix is the term used to describe the composition of a company’s sales. The sales mix can be expressed in terms of products, services, geographic regions, or customer types. The sales mix is an important factor in financial planning and analysis, as it can have a significant impact on a company’s revenue and profitability. … Read more

What Is a Special Purpose Vehicle (SPV) and Why Companies Form Them.

A Special Purpose Vehicle/Entity (SPV/SPE) is a legal entity (usually a limited company of some type or, sometimes, a partnership) created to isolate financial risk. SPVs are typically used by companies to raise capital by issuing debt securities. The proceeds from the sale of the securities are used to finance the company’s activities, without putting … Read more

SEC Form 25.

SEC Form 25 is a filing that must be made by a corporation when it ceases to be a public company. The form is filed with the Securities and Exchange Commission (SEC) and must be signed by the company’s CEO or CFO. What happens to shareholders after delisting? When a company is delisted from a … Read more

What Is Corporate Capital?

Corporate capital refers to the funds that a corporation uses to finance its operations. This can include money that is raised through the sale of equity, as well as debt financing. The funds that are generated from these sources can be used to cover a variety of expenses, such as the costs of raw materials, … Read more

What Is a Reverse Stock Split?

A reverse stock split is when a company decreases the number of shares outstanding by consolidating them into a smaller number of shares. For example, if a company has 1,000 shares outstanding and does a 1-for-2 reverse stock split, then it would have 500 shares outstanding after the split. The main reason companies do reverse … Read more


Capacity refers to the amount of output that a company can produce given its current resources. It is usually expressed as a maximum amount that can be produced in a certain period of time, such as per day, per week, or per month. The term can also refer to the amount of products or services … Read more

Financial Intermediary.

A financial intermediary is an entity that provides financial services to two or more other parties. Financial intermediaries are typically financial institutions, such as banks, credit unions, and investment firms. They can also be non-financial companies, such as insurance companies and pension funds. Financial intermediaries use their own capital to fund transactions between their clients. … Read more

What Is a Capacity Cost?

A capacity cost is a type of sunk cost associated with the decision to add capacity to a business. A capacity cost is incurred when a business expands its operations by adding new facilities, equipment, or personnel. The cost is considered sunk because it has been incurred regardless of whether or not the expansion ultimately … Read more