To understand net investment, it is important to differentiate it from gross investment. Gross investment refers to the total amount of investment made without considering any depreciation or reduction in value. While gross investment provides an initial view of the total amount invested, net investmen...
Taxes cash flow: Income tax refund received and income tax paid (sales tax received and paid should be equivalent) Cash for income taxes = Income taxes + decrease or – increase in income tax payable – income tax refund Other cash flow: Any other cash received, such as investment capital...
If you’ve worked at a private company that’s intending to go public one day, sometimes part of your compensation is given through equity, part-ownership of the firm. It’s a way to hire talented people without a lot of cash upfront. And if the company does go public, you get a ...
Accounts receivable is not considered cash because it isn’t currency. It is, however, considered an equivalent because it is highly liquid and easily converted into cash in a short period of time. Thus, it would be included in equivalents calculation. ...
While private investment can offer lucrative opportunities, it is essential to understand the underlying risks and complexities involved. Investors must carefully assess their risk tolerance, conduct thorough due diligence, and seek professional advice when venturing into this realm. ...
Discover what logistics is & what it means for businesses. Learn more about the various types & processes with examples.
A CD ladder is a type of saving strategy that involves opening both short- and long-term CDs. This provides more flexibility than putting cash in one CD, so you can go for the higher rates of a three- to five-year CD and still have regular access to some of your money over time. ...
Smart beta, like factor investing, is a mix of passive and active investment strategies and below you can see what makes smart beta a combination of passive and active: Also, the smart beta includes the strategies that usually refer to the style factors within a single asset class (bonds, ...
Liquidity:Cash equivalents must trade in liquid markets. That's because these investments must be very easy to convert to cash. If an investment is not liquid, it cannot be considered a cash equivalent. For example, a CD that doesn't allow for early redemption before thematurity dateis not ...
A liquid asset is either available cash or an instrument that can easily be converted to cash. Liquid assets are perceived as being essentially identical to cash because they don't lose value when they're sold. A cash equivalent is an investment with a short-term maturity such as stocks, b...