Term of the Day


The gradual elimination of a liability, such as a mortgage, in regular payments over a specified period of time. Such payments must be sufficient to cover both principal and intere ... Read more

Follow Us

Featured Subjects and Definitions

Browse All Subjects

Investing Tip

Corporate Executives and Making Money

by Milton Friedman

Do corporate executives, provided they stay within the law, have responsibilities in their business activities other than to make as much money for their stockholders as possible? ...

Income vs. Revenue

When evaluating a company from an investment perspective two of the key figures to look at are the revenue and income amounts generated by that company.  This ...

Amortization vs. Depreciation

In accounting, the terms amortization and depreciation are both used a great deal and it can be difficult for non-accountants to follow exactly what they’...

Lease vs. Buy?

Leasing or buying an asset can be a tough decision for any business to make. Which option works best for your company is contingent on a series of factors that ...

How to Calculate Free Cash Flow

Free Cash Flow is a very useful metric for investors when assessing a company as it provides insight into the viability of the company to fund its own growth an...

Valuation of Options

The option’s value is called its premium. This is the current value of each option contract. It is expressed as a single numeral with two decimal places. ...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z