Blog Posts

What Is the Coefficient of Variation (CV)? The coefficient of variation (often abbreviated CV or COV) is a statistical measure of the dispersion of data points around the mean. It is calculated as the ratio of the standard deviation to the mean, and can be expressed as a percentage. In finance, CV is important as […]

What Is Gross Margin? Gross margin is the difference between a product’s selling price and its cost of production. Gross margin is expressed as a percentage of the selling price. For example, if a company sells a product for $100 and it costs the company $90 to produce the product, the gross profit would be […]

What is Working Capital? Working capital (WC), also known as net working capital (NWC), refers to the money that a company has available to meet its short-term obligations. It is a key metric that investors use to assess a company’s financial health and its ability to continue operating and growing. Working capital is calculated by […]

A soft landing in economics and markets refers to central banks being able to engineer lower inflation without triggering a recession. A hard landing, on the other hand, is when central banks tighten monetary policy too much, leading to an economic downturn. Stagflation is a situation of high inflation and low growth. It can be […]

Russia’s invasion of Ukraine and sanctions imposed by NATO countries and western allies put the Russian ruble (RUB) into a tailspin against virtually all other emerging market currencies. The sanctions guarantee that Russia will have bad inflation problems. Tightening monetary policy can help take some of the air out of inflationary pressure, with the trade-off […]

Carbon emissions trading is a type of policy that enables companies to buy or sell allotments of carbon dioxide (CO2) output permitted by governments with regional or national emissions standards. Carbon emissions trading is based on the idea that individuals or institutions can each own, buy or sell permits to produce greenhouse gas. Carbon emission permit […]

An inverted yield curve is an interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the same credit quality. This is considered a negative yield curve, because it is “inverted” from the typical yield curve relationship, in which longer-term rates are higher than shorter-term rates. What Happens […]

Despite being one of the oldest and most well-known indexes in the world, there are still some misconceptions about the S&P 500. Below, we dispel some of the most common myths about this popular market benchmark. 1) The S&P 500 is only made up of US companies A company must be based in the US […]

Form 1099-B is used to report proceeds from broker and barter exchange transactions. This form is used to report the sale of stocks, bonds, commodities, and other securities. The 1099-B must be filed with the IRS by the broker or barter exchange. The 1099-B must also be sent to the taxpayer by February 15. The […]

A Schedule K-1 is a tax form that is used to report the income, losses, and dividends of a partnership or S corporation. Schedule K-1s are usually issued by the end of February. If you are a partner in a partnership or an S corporation, you will need to file a Schedule K-1 with your […]