Down Round (Understanding) A scenario in which the value of a firm at the time of investment is lower than the value of the same business during a…
Down Payment (Understanding, Advantages, and Disadvantages) A down payment (also known as a deposit in British English) is a non-refundable sum made ahead for the purchase of a high-priced object such…
Price to Tangible Book Value (PTBV) The price to tangible book value (PTBV) is an important indicator for value investors since it compares a company’s Tangible Book Value to its current…
Asset Valuation Asset valuation is the process of determining the value of a specific asset, such as stocks, options, bonds, buildings, machinery, or land, which is typically…
Reserve Ratio The reserve ratio, also known as the bank reserve ratio, the bank reserve requirement, or the cash reserve ratio, is the proportion of deposits that…
Exchange Rate Mechanism (ERM) The exchange rate mechanism, or ERM, is a method of setting and stabilizing exchange rates by limiting the amount of movement in the value of…
Advantages of Value Engineering In the engineering stages of a project, value engineering is a creative, team-based approach to seeking and selecting the best alternative for achieving a function…
Bear Raid A bear raid is an unlawful activity of conspiring to drive the price of a stock lower by coordinated short selling while disseminating unfavorable rumors…
Wash Trading Wash trading, also known as round trip trading, is a kind of market manipulation in which speculators purchase and sell the same financial assets at…
Subscription Agreement A subscription agreement is a written agreement between a corporation and an investor to acquire shares in the company at a certain price. Limited partnership…
Accredited Investor An accredited investor, sometimes known as a sophisticated investor, is an individual or institutional investor who has satisfied the Securities and Exchange Commission’s (SEC) standards.…
Activist Investor Activist investing is the practice of purchasing a substantial quantity of a company’s stock in order to gain influence and pressure the company’s leadership team…