Mutual funds and hedge funds are pooled investment vehicles. However, both of these types attract different types of investors and follow contrasting investment strategies. Let us discuss what are mutual funds and hedge funds and their key differences. What is a Mutual Fund? A mutual fund is a pooled investment that collects money from several …
Mutual Funds Vs Hedge Funds: What Are the Differences? Read More »
Contribution margin and operating margins are both profitability measures. However, both these metrics provide different types of information to the business. Both these terms have certain similarities and some key differences. Let us discuss these concepts briefly. What is Contribution Margin? The contribution margin is total sales minus variable costs for a company. It can …
Contribution Margin Vs Operating Margin: What Are the Differences? Read More »
Common stocks and treasury stocks are important components of the equity of a company. Although both represent equity, they work in contrasting ways. Let us discuss what are common stocks and treasury stocks and their key differences. What is Common Stock? Common stock or a common share refers to a type of security that represents …
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Hedge funds and private equity funds are pooled investments that offer high investment returns to investors. Both types of funds seek similar investment goals with contrasting tactics. Let us discuss what are hedge funds and private equity funds and their key differences. What is a Hedge Fund? Hedge funds are pooled investments that seek high …
Hedge Fund Vs Private Equity Fund – What are the Key Differences? Read More »
Cash and stock dividends offer discrete benefits to the issuing company and its shareholders. Let us discuss what are cash and stock dividends and their key differences. What is a Cash Dividend? A cash dividend is an income that investors (shareholders) receive from a company in cash form. Cash dividends are paid out of a …
Cash Dividend Vs Stock Dividend – What are the Key Differences? Read More »
Throughput contracts allow two or more parties to set forth terms and conditions for the purchase of commodities and goods for long-term projects. These contracts set the conditions for the minimum order quantity, shipping schedule, and duration of the contract for scheduled deliveries until the contract expires. Let us discuss what is a throughput contract, …
What is a Throughput Contract? Throughput Contract Vs Take-or-Pay Contract Read More »
A rights issue and bonus issue offer new shares to existing shareholders. Companies aim to handle their cash problems using these two methods. However, both of these options offer different benefits and limitations to the issuing companies as well as their shareholders. Let us discuss what is a rights issue, a bonus issue, and their …
Rights Issue Vs Bonus Issue – What are the Differences? Read More »
Marginal cost and the average cost of production are two important costing concepts. Both types of costing methods offer valuable information to the management. Let us discuss what is marginal cost, average cost, and their key differences. What is Marginal Cost? The marginal or incremental cost is the additional cost of producing one unit of …
The intrinsic value of a stock option is the theoretical profit of the option. However, a stock option also has extrinsic value. Let us discuss what is the intrinsic value of a stock option and how to calculate it. Intrinsic Value of Stock Options The intrinsic value of a stock option is the value or …
How to Calculate the Intrinsic Value of a Stock Option? Read More »
Franchising and licensing are two popular business models. Both models offer certain advantages and disadvantages to both parties in the arrangement. Let us discuss what are franchising and licensing and their key differences. What is Franchising? Franchising refers to a business agreement between a franchisor and a franchisee where the franchisor remains the legal owner …
Franchising Vs Licensing – What are the Key Differences? Read More »
