Finance

Projected Benefit Obligation (PBO)

Projected Benefit Obligation (PBO)

The projected benefit obligation (PBO), also known as the present value of defined benefit obligation (PVDBO), is an actuarial calculation that determines how much money a corporation will need now to fund future pension obligations. It’s the actuarial present value of all potential pension.....

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Simplified Employee Pension (SEP)

Simplified Employee Pension (SEP)

A simplified employee pension (SEP) is an individual retirement account (IRA) that an employer or a self-employed person can establish. SEP IRAs are for business owners, and contributions are tax-deductible. Investments grow tax-deferred until retirement when distributions are taxed as income. Ad.....

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Deferred Profit-Sharing Plan (DPSP)

Deferred Profit-Sharing Plan (DPSP)

Employers sponsor a deferred profit-sharing plan (DPSP) that combines a pension with a retirement plan to help employees prepare for retirement. It is a business-supported Canadian profit-sharing arrangement that is enlisted with the Canadian Revenue Agency, which is fundamentally the Canadian re.....

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Deferred Interest

Deferred Interest

Deferred interest is a deal on what is effectively a loan that allows the borrower to postpone paying interest for a fixed period of time if the loan is paid in full or the expense of a particular item is paid in full. However, the obligation to pay the interest is merely deferred, not eliminated.....

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Discretionary Income

Discretionary Income

Discretionary income is after-tax income that has been deducted from all contributions that must be made to fulfill current obligations. After paying for required or important expenditures, it is the sum of money left over for a person, household, or company. Discretionary income incorporates cas.....

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Vertical Line Charting

Vertical Line Charting

Vertical line charting is a graphical representation of a given asset’s different price points over time, which can range from 15 minutes to five years. It’s a method used by technical traders and market technicians to monitor a security’s price movements. In vertical line chart.....

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Advance-Decline Line

Advance-Decline Line

The advance-decline line (ADL) is a technical indicator that shows the regular difference in the amount of advancing and declining stocks. It’s a stock market technical indicator that investors use to determine how many individual stocks are involved in a market’s rise or fall. The po.....

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Debt Capital Markets (DCM) Group

Debt Capital Markets (DCM) Group

A debt capital markets (DCM) group (or team) will work with a client to arrange borrowing and connect them with a global pool of investors searching for new opportunities. These groups are in charge of giving direct guidance to corporate issuers on debt funding for acquisitions, refinancing exist.....

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Security Market Line (SML)

Security Market Line (SML)

The security market line (SML) is a representation of the capital asset pricing model (CAPM) that plots different levels of systemic, or market risk, of various marketable securities against the market’s expected to return at any given time. It calculates the market’s expected to retu.....

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Capital Market Line (CML)

Capital Market Line (CML)

The capital market line (CML) is a theoretical principle that determines the best risk-free asset and market portfolio combinations. It’s a tangent line drawn from the risk-free asset’s point to the risky asset’s feasible field. The CML addresses portfolios that ideally join haz.....

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Efficient Market Hypothesis (EMH)

Efficient Market Hypothesis (EMH)

The efficient market hypothesis (EMH) or efficient market theory is a financial economics hypothesis that states that asset prices represent all available information. It is a form of investment theory that is based on ideas from Eugene Fama’s study, as outlined in his book “Efficient Cap.....

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Market Efficiency (Definition, Types)

Market Efficiency (Definition, Types)

Market efficiency is a general concept that refers to any metric that measures the dispersion of information in a market. It refers to the extent to which market prices represent all applicable and accessible data. A market that is effective is one in which all information is distributed perfectl.....

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