Finance
Question Archives

The Benjamin Graham Formula is a mathematical formula that was devised by finance legend Benjamin Graham. The formula is designed to provide a margin of…

A Bermudan option is an exotic type of options contract that allows the holder to exercise the option at certain predetermined dates. The name “Bermudan…

A benchmark is a point of reference against which the performance of an investment or fund manager can be measured. In finance, benchmarks are usually i…

Behavioral portfolio theory (BPT) is an investment theory that seeks to explain how and why investors make the decisions they do when constructing a por…

A bear market rally is when the stock market experiences a temporary rebound after a prolonged period of decline. This typically happens after investors…

Behavioral finance is a field of finance that considers the psychological and behavioral aspects of people when making financial decisions. It studies h…

A bear market is when the stock market falls by 20% or more from its recent highs.

There are two schools of thought on how a bear market happens. On…

A security is a tradable asset of any kind. In accounting, security refers to any form of financial instrument that can be traded. A security is a contr…

Sales journal is a book of original entries in which transactions relating to sales are recorded. It is also known as the “book of sales.” Sales journal…

Revenue recognition is the accounting process of recognizing revenue earned. This involves recording sales or other transactions as revenue on the compa…

Production accounting is a branch of accounting that deals with the financial aspects of film and television production. It includes tracking income and…

Profit and loss account is a financial statement that shows the revenue, expenses, and profit or loss of a company over a certain period of time. This s…

Project accounting is a system that allows businesses to track the financial progress of specific projects. This type of accounting can give businesses …

Positive assurance is a type of accounting that helps to ensure the accuracy of financial statements. This is done by providing third-party verification…

Payroll refers to the process of calculating and distributing employee wages. This process can be completed manually or through payroll software. Payrol…

Positive accounting is the branch of accounting that attempts to explain and predict accounting phenomena from a positive perspective, rather than from …

The pro-forma amount is the estimated or projected value of something. In accounting, pro-forma amounts are often used to estimate future income or expe…

The P/E ratio, or price-to-earnings ratio, is a financial metric used to assess the relative value of a company’s stock. The ratio is calculated by divi…

Petty cash is a small amount of money that businesses keep on hand for minor, everyday expenses. The petty cash fund is usually kept in a lockbox or dra…

Operating expenses are the costs associated with running a business on a day-to-day basis. This can include everything from rent and utilities to salari…

Online accounting is the process of recording, storing, and retrieving financial transactions via the internet. It allows businesses to manage their fin…

Management Control is the process by which an organization’s management team controls and oversees the various activities within the organization. This …

Basis risk is the risk that the price of an asset will move differently than the underlying asset. This can happen when two assets are not perfectly cor…

Basel II is an international banking accord that regulates how much capital banks must set aside to cover their assets. It was introduced in 2004 and re…

A basis swap is an interest rate swap where the floating leg references a different index than the fixed leg. The most common type of basis swap is the …

The Basel Committee on Banking Supervision is the primary global standard-setter for the prudential regulation of banks and provides a forum for coopera…

Basel III is the third in a series of banking regulations put forth by the Basel Committee on Banking Supervision, which seeks to ensure that banks have…

The Barone-Adesi and Whaley model is a quadratic approximation method used to price options. It is also known as the “Binomial Put Approximation” model….

The Basel Accords are a set of international banking regulations developed by the Basel Committee on Banking Supervision. The accords are designed to pr…

Basel I is the first of the Basel Accords, which are a series of international banking standards agreed upon by the Basel Committee on Banking Supervisi…

Bankruptcy is a legal process that helps people who can’t pay their debts get a fresh start by liquidating their assets to repay their creditors.

Th…

A bank holding company is a company that controls one or more banks. They can be either diversified or non-diversified. A diversified bank holding compa…

A banking license is a type of financial license that allows a company or individual to engage in the business of banking. Banking licenses are regulate…

A banknote is a piece of paper or cloth that is used as a form of currency. Banknotes are usually issued by a government and are often backed by gold or…

Bank regulation is the process by which banks are supervised and monitored to ensure that they operate within the law. Bank regulators typically have a …

In finance, backwardation is the condition where future prices are lower than spot prices. This happens when the demand for a commodity is greater than …

The Bank for International Settlements (BIS) is an international financial institution that provides central banking services to its member banks. It al…

The balance sheet is a financial statement that provides an overview of a company’s assets, liabilities and shareholder equity. The balance sheet can be…

Balance sheet analysis is the process of reviewing a company’s financial statement in order to better understand its financial health. The balance sheet…

A bank is a financial institution that accepts deposits from customers and makes loans to borrowers. The finance industry uses banks to help businesses …