Par value and market value are distinctly different from one another. In a nutshell, to understand what is par value refers to the stated or face value of an asset such as a house, a car, a stock, a bond, or anything that has a tradable value. While market value is determined by someone’s willingness […]
What Is Net Income – How To Calculate And Find It?
Financial reports, or financial statements, include a balance sheet (statement of financial position), income statement (P&L or statement of comprehensive income), statement of changes in equity (statement of retained earnings) and cash flow statement. The bottom line of the income statement is net income. This is why many people may want to ask: “what is […]
Mutual Funds For Dummies Book Review
Mutual funds are one of the most common ways of investing money, whether you are an active trader, just looking to save money for retirement, or anything in between. Mutual Funds for Dummies is one of the best-selling introductory books that approach these investment vehicles. In this article, we review its most recent edition to help you […]
What Is the Prime Rate and How Does It Work? | Finance for Dummies
Simply put, the prime rate is the interest rate a bank will charge on a loan to its most creditworthy customers. The prime rate can fluctuate from bank to bank and is partially determined by another interest rate known as the Federal Fund Target Rate (FFTR). There is a good deal more that goes into […]
What Is a Stakeholder’s Role and Responsibilities? | Finance for Dummies
Although you have heard the term many times, do you still find yourself asking, “what is a stakeholder?” What are their responsibilities and what role do they play in business? Do you know the difference between a shareholder and a stakeholder? Well, if you want to learn ‘what is a stakeholder’ you will find plenty […]
What Is Working Capital and Examples
From industry to industry, no matter the size or age of a company, they all have something in common. They all find it useful to know day-to-day what is working capital. Working capital is simple to calculate but its implications are huge. It is a number closely investigated by management, potential, and current investors, internal […]