Finance

An accumulated benefit obligation (ABO) is an estimation of the present value of pensions or retirement benefits to which an individual is entitled when the…

Convertible Preference Shares Convertible preference shares give the preference shareholders the right to convert their shares into a specified number of common shares. These shares…

The current market price of a security, currency, or product available for purchase/sale for immediate settlement is the spot price (or spot rate). In finance,…

A dividend usually comes in the form of a transfer of cash that is paid to investors from the profits of the company. A business…

Revolving Credit A revolving credit account sets a credit limit—a maximum amount you can spend on that account. This refers to a kind of letter…

Transaction date is a term used to describe (successful or not) a certain day or time of the week when the transfer was completed. The…

Non-participating Preference Shares Preference shares having no right to participate in the surplus profits or any surplus on liquidation of the company are referred to…

Participating Preference Shares Participating preference share is where the issuing company is entitled to pay an increased dividend to the owners, in addition to preference…

In finance, the value date is a future date that is used to evaluate the present value of a commodity or price-fluctuating security. It refers…

The Return on Sales (ROS) is a percentage calculation used to demonstrate how effectively a company converts revenues into profits. This measure offers insight into…

Non-cumulative Preference Shares Non-cumulative preferred stock does not issue any unpaid dividends. If the company has not paid dividends in any given year, the shareholders…

Cumulative Preference Share is a preference share whose annual fixed-rate dividend if it cannot be paid in any year, accrues until it can. These shares…