INVESTING ESSENTIALS

Definition: A credit balance is a situation where a person’s available credit limit is greater than their current credit utilization. This means that the person has available credit that they can use, if needed. Explanation: Example: If a person has a credit limit of $10,000 and their current credit utilization is $2,000, they have a […]

The highest price a bidder is willing to pay for an asset or security in an auction or tender. It is the price that a bidder submits as a bid, hoping to win the auction or tender. Key Points: Examples: Additional Notes: FAQs

Definition: Ad infinitum is a Latin phrase that means “to infinity.” It is used to describe something that is boundless, limitless, or without bounds. Meaning: Examples: Mathematical Notation: ∞ (infinity symbol) is used to represent infinity in mathematics. For example: lim x→∞ (x^2 – 1) = ∞ Synonyms: Antonyms: FAQs

Capital appreciation is the increase in the value of an asset over time. It is a type of investment that involves the purchase and sale of assets with the goal of generating profit from their appreciation. Types of Capital Appreciation: Causes of Capital Appreciation: Advantages of Capital Appreciation: Disadvantages of Capital Appreciation: Examples of Capital […]

An accredited investor is a person who meets certain financial criteria established by the Securities and Exchange Commission (SEC) that qualify them to participate in certain investment opportunities. These opportunities include private offerings, hedge funds, and other alternative investments. Eligibility Criteria: To be accredited as an investor, you must meet one of the following criteria: […]

Definition: Risk capital is a type of investment capital that is used to finance high-risk, high-return investments. It is typically provided by venture capitalists, angel investors, or other investors who are willing to take on the risk of failure in exchange for the potential for a high return on investment. Key Features: Examples: Advantages: Disadvantages: […]

An investment analyst is a financial professional who analyzes the financial performance of companies and other investments. They use their knowledge of financial modeling, quantitative analysis, and economic trends to make investment recommendations to clients. Key Responsibilities: Qualifications: Typical Salary: The salary of an investment analyst in the United States varies depending on experience, location, […]

An exit strategy is a plan that outlines the process of exiting an investment or business. It defines the specific actions that will be taken to dispose of the asset and generate a return on investment. Common Exit Strategies: 1. Primary Market Offering:– Selling the asset to a public company through an initial public offering […]

Capital loss is a reduction in the value of an asset that is used in the production or sale of goods and services. It is also used to refer to a loss on the sale of an asset that is classified as capital property. Here are some examples of assets that can generate capital losses: […]

Special Purpose Acquisition Company (SPAC) A special purpose acquisition company (SPAC) is a company formed primarily to acquire a target company, typically in a particular industry or with specific financial characteristics. Unlike traditional companies, SPACs do not have their own operating assets or revenue streams. Instead, they raise money from investors to acquire and improve […]