Dry powder is a term used to describe the amount of cash that a company has on hand to invest or use for other purposes. It is also used as a measure of a company’s financial health. A company’s dry powder can be used for a variety of purposes, including acquiring other businesses, investing in … Read more
Gain definition refers to the increase in the value of an investment over time. For example, if you purchase a stock for $10 per share and it increases in value to $12 per share, you have made a $2 per share gain. What is stock gain called? “Stock gain” refers to the increase in value … Read more
A profits interest is a type of ownership interest in a partnership or limited liability company (LLC) that entitles the holder to a share of the entity’s profits, but not its assets. The holder of a profits interest does not have an equity stake in the entity and is not entitled to any distribution of … Read more
A lapse in insurance is a period of time when an insurance policy is not in force. A lapse can occur if a policyholder fails to pay a premium, or if a policy is cancelled for non-payment. A lapse in coverage can have serious consequences, as it may result in a loss of benefits, or … Read more
An open offer is when a company makes an offer to buy a certain amount of shares from shareholders at a set price. This is usually done when the company wants to buy back shares, or when it wants to increase its stake in the company. What is difference between open offer and buy back? … Read more
Long-term growth (LTG) is defined as the increase in value of an investment over a prolonged period of time. The main drivers of long-term growth are earnings growth and dividends. To achieve long-term growth, companies must reinvest their earnings and pay out dividends. reinvesting their earnings allows companies to finance new projects or expand their … Read more
An “issue” is a specific event or problem that a company is facing. This can be anything from a new product launch to a financial scandal. When a company is facing an issue, it is important to understand how this will impact the company’s stock price. If the issue is positive, it may lead to … Read more
A “tenbagger” is an investment that increases in value tenfold. For example, if you invest $1,000 in a stock that becomes a tenbagger, it is worth $10,000. The term is often used in the context of stocks, but can technically refer to any type of investment, including bonds, real estate, and even collectibles. Tenbaggers are … Read more
There are many different time periods that investors can choose to focus on when considering their investment returns. Some common time periods include daily, weekly, monthly, quarterly, annually, and over the life of an investment. One way to compare investment returns across different time periods is to annualize them. This simply means converting the return … Read more
When you subscribe to something, you’re agreeing to receive ongoing deliveries of it in exchange for regular payments. For example, when you subscribe to a magazine, you agree to pay a certain amount each month or year in exchange for regular delivery of that magazine to your home. Many subscription services offer a free trial … Read more
