Understanding Net Present Value
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Learn how this value is used to determine the worth of a project.
"Mark-to-market" accounting is a way of valuing assets based on how much they could sell for under current market conditions. In recent decades, it has become the standard way to record financial assets on a company's balance sheet.
An options premium is the amount of money that investors pay for a call or put option. The two components that affect options pricing are the intrinsic value and time value. Matthew is interested in Roadking Auto, a luxury car maker, and finds that he can buy a call option with a strike price of $40 a share.
Weighted average cost of capital may be hard to calculate, but it's a solid way to measure investment quality
Writing an option is the process of selling to another investor the right, but not the obligation, to buy or sell a stock at a given price in the near future. It can also be referred to as shorting an option or selling an option.
Learn more about this commonly used term found in a stock's option chain.
Goodwill is more than just benevolence - it also refers to an accounting term frequently used in M&A. Learn more about it here.
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