Finance

Features of Real Estate Investing

Features of Real Estate Investing

When it comes to real estate, we can say that it takes a lot of foresight and capital investment to see a profit. Some of the best real estate investments generate a consistent monthly income while also increasing wealth through long-term asset appreciation. As a result, real estate investments a.....

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Classification of Real Estate

Classification of Real Estate

Real estate includes the land as well as any permanent improvements attached to it, whether natural or man-made, such as water, trees, minerals, buildings, homes, fences, and bridges. Real estate investing is the purchase of property for the purpose of generating income rather than living in it a.....

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Impact Investing

Impact Investing

Impact investing is defined as investments undertaken with the explicit objective of generating a beneficial social or environmental impact in addition to financial rewards. Impact investments can take the shape of a variety of asset types and have a variety of results. Impact investing is, at it.....

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Lock-Up Agreement

Lock-Up Agreement

A lock-up agreement is a contract between business insiders and an underwriting firm that states that company insiders are not allowed to sell their shares of the company’s stock for a set length of time. It’s a legally enforceable agreement struck between a company’s insiders a.....

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Seller’s Discretionary Earnings (SDE)

Seller’s Discretionary Earnings (SDE)

Seller’s discretionary earnings (SDE) is an earnings indicator used to assess a company in order to provide potential purchasers a more realistic picture of the cash flow available. It includes a company’s profit before taxes and interest, as well as non-cash costs, unusual one-time i.....

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Static Budget

Static Budget

Static budgets are tools for projecting business expenses for an accounting period. It is a type of budget in which the income and expenditures of the relevant body are pre-determined for the coming period. There will be differences between the budgeted amount and the actual spending amount, espe.....

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Reserve Currency

Reserve Currency

A reserve currency is a foreign currency that central banks or other monetary authorities hold in significant quantities as part of their foreign exchange reserves. It is a large amount of currency held by central banks and other major financial institutions in order to prepare for investments, t.....

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Loss Ratio

Loss Ratio

The loss ratio is a percentage representation of the ratio of losses paid out to premiums generated in the insurance sector. It’s the inverse of the gross profit margin (commonly known as the gross profit margin). It’s the ratio of premiums earned to losses paid. That is, a comparison.....

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Statutory Reserves

Statutory Reserves

A statutory reserve is a legislative obligation for insurance firms to keep a specified amount of money in reserve in order to secure policyholders’ future benefits and keep the insurers financially healthy. It is the measure of cash, protections, or resources that should be saved as a legi.....

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Earnings Estimate

Earnings Estimate

Earnings estimates are a valuable tool for both existing and potential investors when considering whether to purchase or sell stock since they are a good predictor of future growth. It is an analyst’s prediction of a company’s earnings per share (EPS) for the following quarter or fisc.....

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Earnings Multiplier

Earnings Multiplier

The earnings multiplier, often known as the price-to-earnings ratio (P/E), is a financial statistic that compares a company’s current stock price to its earnings per share (EPS), which is simply calculated as price per share/EPS. In straightforward words, it is a proportion of valuation to .....

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Retention Ratio

Retention Ratio

The retention ratio, also known as the net income retention ratio or the plowback ratio, is the percentage of earnings that are held in the firm as retained earnings. The retention ratio is the percentage of a company’s profits that are reinvested in the business rather than given out as di.....

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