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Learn how to calculate this common formula in finance.

## In This Series

6. ### What Is Inflation?

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Hot Definitions
1. ### Retirement Planning

Retirement planning is the process of determining retirement income goals and the actions and decisions necessary to achieve ...
2. ### Drawdown

The peak-to-trough decline during a specific record period of an investment, fund or commodity. A drawdown is usually quoted ...
3. ### Inverse Transaction

A transaction that can cancel out a forward contract that has the same value date.
4. ### Redemption

The return of an investor's principal in a fixed income security, such as a preferred stock or bond; or the sale of units ...
5. ### Solvency

The ability of a company to meet its long-term financial obligations. Solvency is essential to staying in business, but a ...
6. ### Dilution

A reduction in the ownership percentage of a share of stock caused by the issuance of new stock. Dilution can also occur ...
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