GDP, or Gross Domestic Product, is one of the most-watched economic indicators in the U.S. economy. It is an important measure of the health and stability of the nation’s economic health. Movement in the stock market is often associated with positive or negative GDP reported results. Thus, it is important to understand what is real […]
What Is Shorting a Stock?
There are numerous ways to invest in the stock market and begin building the foundations of a robust, profitable stock portfolio. One unusual, risky way to profit off a company’s bad decisions is by shorting a stock. Shorting a stock is borrowing money to invest in shares in a corporation at a lower price than […]
What Is a Collateral Loan?
An illustration well answers the question, what is a collateral loan? Imagine you are in a tricky situation, and you badly need financial assistance. Your immediate family members or friends are the first people to contact. But, what if you need more cash than your friends or family can afford to raise? The solution would […]
What Is a Balloon Payment?
When buying anything from a car to a house, you might choose a loan with a balloon payment at the end of the finance term. But, before entering such agreement, be sure you can answer the following question: What is a balloon payment? Simply put, a balloon payment is a massive, single payment that is […]
What Is a Revocable Trust?
So, what is a revocable trust? A revocable trust is a legal entity that is created to hold assets. The revocable trust could act as a self-defense tool to direct the use of assets should the creator of the trust become incapacitated. Parents can also use revocable trusts to hold assets for the benefit of […]
What Is Contribution Margin?
In accounting, contribution margin is the difference between a company’s total sales, revenue, and variable costs. You can use the contribution margin formula to determine how much of a company’s revenues will be contributing to the business’s net income and fixed costs, after deducting the variable costs. It can be presented as the amount for a […]
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