Corporate Finance
Top 2 Ways Corporations Raise Capital
When corporations need to raise capital, there are a number of options available to them. Two of the most common ways corporations raise capital are through debt financing and equity financing. While both methods involve raising funds, they differ in terms of who provides the capital and how it is repaid. Debt financing involves borrowing […]
Internal Growth Rate (IGR): Definition, Uses, Formula and Example
Internal Growth Rate (IGR) is a financial metric that measures the maximum growth rate that a company can achieve using only its existing resources, without requiring any additional external financing. It is an important metric for businesses to track, as it provides insight into the company’s ability to generate growth and profitability without the need […]
Why Do Companies Delay Earning Releases?
Publicly traded companies are required to release their earnings reports on a regular basis, typically every quarter. This report is an important indicator of the company’s financial performance and is eagerly anticipated by investors and analysts. However, some companies choose to delay their earnings release, which can raise questions and concerns among stakeholders. In this […]
What Is a Written Premium in the Insurance Industry?
In the insurance industry, a written premium is a term used to refer to the amount of money an insurance company earns from selling policies to customers. It is essentially the total amount of premiums charged to policyholders during a specific period of time, such as a year, for all policies written during that period. […]
Treaty Reinsurance: Definition, How It Works and 2 Contract Types
Treaty reinsurance is a type of reinsurance contract that provides coverage for an entire class of policies rather than for individual policies. This type of reinsurance is used to transfer a portion of an insurer’s risk exposure to a reinsurer, in exchange for a premium payment. In this article, we’ll take a closer look at […]
Freeze Out
In the world of corporate finance and mergers and acquisitions, the term “freeze-out” refers to a situation in which a controlling shareholder or group of shareholders takes action to exclude minority shareholders from participating in the management or profits of a company. This can occur in a variety of ways, from the manipulation of corporate […]
How Do I Use the CAPM to Determine Cost of Equity?
When evaluating investment opportunities, one of the most critical factors to consider is the cost of equity. This is the rate of return that investors require in order to invest in a particular stock or portfolio. The Capital Asset Pricing Model (CAPM) is a commonly used method for determining the cost of equity, and it […]
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. It encompasses the relationships among a company’s management, board of directors, shareholders, and other stakeholders, as well as the goals for which the corporation is governed. Corporate governance is essential to the long-term success of any business, […]
How Escrow Protects Parties in Financial Transactions
In any financial transaction, both parties involved want to ensure that their interests are protected. One of the most important ways to do this is through the use of an escrow service. Escrow provides a level of security for both the buyer and seller by holding the funds until the agreed-upon conditions of the transaction […]
Fiscal Quarters (Q1, Q2, Q3, Q4) Explained
Fiscal quarters, also known as financial quarters, are used by businesses and organizations to report their financial performance over a given period of time. These quarters typically cover a three-month period and are denoted by Q1, Q2, Q3, and Q4. In this article, we’ll explore fiscal quarters in more detail, including what they are, how […]