Gross annual income is the total value of money received by an individual or a business during a fiscal year. It includes fixed or variable income sources and these can be active or passive income sources. Let us discuss what is gross annual income and how to calculate it using a simple step-by-step guide. What […]
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The capital infusion is a widely used term for investments made in entities under financial difficulties. It comes in the form of debt and equity. Let us discuss what is capital infusion and how it works. What is Capital Infusion? Capital Infusion refers to investment in a company or project through debt, equity, or both.
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When a financial market is appreciating generally, it is termed a bull market. Contrarily, when it is depreciating, it is termed a bear market. Both these terms are commonly used in the stock markets. These market conditions come with contrasting features and causes. Therefore, investors deploy different investing strategies during these contrasting times. Let us
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What is a Bull Market? A Bull Market is a phenomenon in financial markets when asset prices rise continuously and the investor sentiment remains optimistic. In simple words, it is a market condition when stocks and other assets appreciate regularly. This happens for an extended period and with an established trend. A bull market is
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What is Closed-End Credit? Closed-end credit is a facility where the borrower can draw the available amount once and must repay by a specific date including interest. It comes with a specified term, interest rate, installment method, and repayment terms. The borrower can only withdraw the available funds once and will repay over the loan
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Compulsory liquidation is the process of following court orders to dissolve a company and sell its assets to satisfy creditors. This process often takes place with creditors appearing in court. However, other stakeholders like regulators and shareholders can also apply for it. Let us discuss what is compulsory liquidation, how it works, and what are
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A loan and a line of credit are two different types of debt instruments. Both these products offer a certain type of borrowing facilities to borrowers. Depending on the type and the borrower’s needs, a loan and a line of credit may offer different benefits and drawbacks. Let us discuss what are the key differences
Loan Vs Line of Credit – What’s the Difference? Read More »
Annual percentage rate (APR) and annual percentage yield (APY) are both types of interest rates. Both these terms look similar but are significantly different. APR is a simple interest rate whereas APY is the yield that considers the compounding effect of interest. This results in significantly different uses for both these rates. Let us discuss
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Portfolio rebalancing is the periodic adjustment of asset allocation in an investment portfolio. It can be performed for individual and corporate investors. The main purpose of rebalancing is to maintain the risk exposure of the portfolio within the defined objectives of the investor. Let us discuss what is portfolio rebalancing, how it works, and what
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The compound annual growth rate and the internal rate of return are both commonly used types of rates of return. Individual investors and businesses can use these two metrics to compare different investment options. Both of these metrics offer different perspectives and can be used in different situations. Let us discuss what are CAGR and
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