Finance and Economics

A basis point (bp) is a unit of measure used in finance to express the change in the value or rate of a financial instrument. One basis point equals 1/100th…

A Required Minimum Distribution (RMD) is the minimum amount you must withdraw from your retirement accounts, such as a traditional IRA or a 401(k), once you reach a certain age….

A credit score is a three-digit number that represents your creditworthiness, typically ranging between 300 and 850. It helps financial institutions determine your eligibility for loans, credit cards, and other…

Definition of Cap Rates Cap rates, short for capitalization rates, are a crucial metric in evaluating the performance of a piece of rental real estate. As an investor, understanding how…

Debt ratio is a financial metric used to assess a company’s financial health, specifically its ability to handle its debt obligations. It indicates the proportion of a company’s assets financed…

Dividends are payments made by a company to its shareholders as a portion of the company’s earnings. They provide a stream of income for investors in addition to any potential…

Average total assets refer to the mean value of a company’s assets during a specific time period. This metric is often used to evaluate a company’s financial performance, management efficiency,…

APR, or Annual Percentage Rate, is a crucial aspect of credit cards that you should be aware of, as it affects the amount of interest you pay on your outstanding…

Navigating the world of car insurance can feel like a daunting task, filled with jargon, percentages, and varying rates. But understanding how your insurance premiums are calculated can empower you…

When you sell an investment or asset for a profit, the profit is subject to capital gains tax. Capital gains tax applies to the sale of capital assets, such as…