Blog Posts

Seasonal trading refers to the tendency of financial markets to exhibit patterns or trends at specific times of the year. These recurring patterns provide opportunities for traders to take advantage of price fluctuations by adjusting their trading strategies accordingly. In this article, we’ll explore seasonal spread trading, stock market seasonality, and the reasons behind the […]

Factor investing is an investment strategy that focuses on selecting securities based on certain characteristics, known as factors, that have been proven to drive investment returns over time. This approach helps investors build more efficient and diversified portfolios, ultimately improving risk-adjusted returns. In this article, we’ll look into the key factors in investing, including value, […]

Mortgage-Backed Securities (MBS) are financial instruments that have been at the heart of the fixed-income market for decades. They pool together mortgage loans from various borrowers and allow investors to participate in the real estate market indirectly. MBS pricing and risk are closely related to the concept of convexity, which measures the sensitivity of bond […]

The Predetermined Overhead Rate (POR) is a critical aspect of cost accounting that enables businesses to allocate overhead costs efficiently and effectively. Understanding and accurately calculating the POR not only helps organizations maintain a competitive edge but also supports more informed decision-making for budgeting and pricing. This article covers the predetermined overhead rate, its importance, […]

Initial public offerings (IPOs) are a significant milestone for companies seeking to raise capital from the public by selling their shares on the stock market. The entire process of going public can be complex, with several factors that companies need to consider. One such factor is the “Greenshoe option,” a relatively lesser-known term that plays […]

In finance and business, understanding and controlling costs is important for the success and growth of any organization. Prime Cost is one key financial metric that businesses rely on to measure and manage the cost of producing a product or service. In this article, we’ll delve into the concept of Prime Cost, explore its components, […]

Understanding the difference between the Effective Annual Rate (EAR) and the Annual Percentage Rate (APR) is important when navigating the world of loans and credit. Both rates are used to determine the cost of borrowing, but they are calculated differently and serve distinct purposes. This article will provide an understanding of EAR and APR, their […]

One of the most critical parts of running a successful business is understanding the financial metrics and terminology used in accounting. Among these terms, “service revenue” and “asset” are commonly used, and it’s important to differentiate between the two. This article will explore whether service revenue can be considered an asset and provide insights into […]

Retained earnings, an essential component of a company’s financial statement, often raises the question: are they considered an asset? The answer to this is not straightforward. So, this article talks about retained earnings and its relation to assets.   Key Takeaways – Is Retained Earnings an Asset?  Retained earnings are accumulated net income that a […]

Bankruptcy is a legal process in which an individual or a company declares the inability to repay debts. This process is often misconceived as a situation where taxpayers bear the burden of the bankruptcy. However, there are several stakeholders involved in a bankruptcy, and the cost is distributed among them. This article will provide a […]