Finance Definitions

Once again, guest blogger Mitchell Pauly takes us on a financial definitions ride through his fun, funny and informative take on finance definitions! This week’s insight: Carrying Costs.

Once again, guest blogger Mitchell Pauly takes us on a financial definitions ride through his fun, funny and informative take on finance definitions! This week’s insight: Marginal Return.

Join guest blogger Mitchell Pauly for the second part of the current ratio definition with the math involved in the Adjusted Current Ratio.

Last week, I introduced the current ratio. This calculation can help families and businesses in dire straits determine if they have enough assets to cover liabilities when the going gets really rough. Let’s continue now with the adjusted current ratio and schedule. Warning: contains math.

Join guest blogger Mitchell Pauly for a serious definition: the current ratio.

Life can turn inexplicably bad, a fact of life that ranks up there alongside death and taxes. I have recently discovered this far more intimately than I wish; my aunt was diagnosed with terminal cancer. As she begins her first round of chemotherapy and begins to lose her hair, my thoughts turn to her family’s current financial situation.

Once again, guest blogger Mitchell Pauly takes us on a financial definitions ride through his fun, funny and informative take on finance definitions! This week’s def: credit scores.

Once again, please join guest blogger Mitchell Pauly for a fun, funny and informative take on finance definitions!

Think back to mid-2008 when the financial turmoil in America was spreading like a bad joke throughout the rest of the world: seemingly everyone was underwater in their mortgage. The water couldn’t have been that nice. We all understand now that one of the main causes of that meltdown was the average American borrowing more than they could afford to pay back — that is, they were over-leveraged.

Leverage is Important

Hi y’ all! Please join MomVesting as we welcome Mitchell Pauly, a guest blogger who loves to discuss finance in fun, funny and informative ways. We look forward to his continued definition contributions while he builds his own site; so put on your spectacles and get ready to learn and laugh!

Debits and Credits

As we move forward in our financial definitions series, we are presented with Unit Investment Trusts, also known as UITs. This type of investment is similar to the mutual fund and the closed-end fund because all three are types of investment companies. Whoa, you say? What is an investment company? Well, let’s take a look at both investment companies and UITs.

Investment Companies

If any of you out there has had a toddler or knows one fairly well, then you already have the means to understand the term "volatility." One minute, your toddler is happily making sweet potato art on his high chair tray while the next minute finds him screaming because no one will give him a steak knife.

Volatility, then, is when something varies greatly over a given period of time. Though pages and pages could be written about this phenomenon and kids, the same concept also applies to the investing and financial world. Today, we take a closer-yet-simple look at price volatility.

As we continue to look at stock and finance definitions, we come to all those pesky margin definitions. Gross profit? EBIT? Pretax profit? Eek! What do all of these mean? And what do they mean to you? Well let’s take a look!

Gross Profit Margin

To begin, let’s look at the definition of a gross profit margin. Basically, a margin is a defining factor about the company in which you are interested in investing. These neat little numbers can tell you a lot about the strength of a company.