How Do I Use the CAPM to Determine Cost of Equity?
The Capital Asset Pricing Model (CAPM) is a financial model that is used to determine the expected return on an investment based on its risk level. The CAPM can be…
What Is a Written Premium in the Insurance Industry?
In the insurance industry, a written premium is the amount of insurance premiums that an insurance company has collected or is expected to collect from its policyholders. The written premium…
Earnings Call
An earnings call is a conference call between a company and analysts or investors in which the company discusses its financial performance, including revenue, profits, and expenses. Earnings calls are…
Corporate Governance Definition: How It Works, Principles, and Examples
Corporate governance is the system of rules, practices, and processes by which a company is directed and controlled. Corporate governance is concerned with the ways in which a company’s management,…
How Escrow Protects Parties in Financial Transactions
Escrow is a financial arrangement in which a third party, known as an escrow agent, holds and manages the funds or assets involved in a financial transaction on behalf of…
Fiscal Quarters (Q1, Q2, Q3, Q4) Explained
Fiscal quarters refer to the three-month periods that make up a company’s financial year. The fiscal year is divided into four quarters: Q1 (first quarter), Q2 (second quarter), Q3 (third…
Chair: Definition in Business, Responsibilties, Vs. CEO
The chair is a leadership role in a business or organization that is responsible for overseeing the operations and strategic direction of the company. The chair is often the highest-ranking…
Syndicate: Definition, How It Works, and Types of Syndicates
A syndicate is a group of individuals or organizations that come together to pool their resources, skills, and expertise in order to achieve a common goal or to invest in…
Simple vs. Compounding Interest: Definitions and Formulas
Interest is the cost of borrowing money or the reward for lending it. There are two types of interest: simple interest and compounding interest. Simple interest is a type of…
Business-to-Business (B2B): What It Is and How It’s Used
Business-to-business (B2B) refers to the sale of products or services from one business to another. B2B transactions are common in industries such as wholesale, manufacturing, and business services, and often…