What Is a Subscription Right? A subscription right is the right of existing shareholders in a company to retain an equal percentage ownership by subscribing to new stock issuances at or below market prices. The subscription right is usually enforced by the use of rights offeringswhich allow shareholders to exchange rights for shares of common stock … Read more
What Is a Leverage Ratio? A leverage ratio is any one of several financial measurements that look at how much capital comes in the form of debt (loans) or assesses the ability of a company to meet its financial obligations. The leverage ratio category is important because companies rely on a mixture of equity and … Read more
What Is a Red Clause Letter Of Credit? A red clause letter of credit is a specific type of letter of credit in which a buyer extends an unsecured loan to a seller. Red Clause Letters of Credit permit documentary credit beneficiaries to receive funds for any merchandise outlined in the letter of credit. These … Read more
What Is the Average Annual Return (AAR)? The average annual return (AAR) is a percentage used when reporting the historical return, such as the three-, five-, and 10-year average returns of a mutual fund. The average annual return is stated net of a fund’s operating expense ratio. Additionally, it does not include sales charges, if … Read more
What Is Section 16? Section 16 is a rule within the Securities Exchange Act of 1934 (SEA) that articulates the regulatory filing responsibilities that directors, officers, and principal stockholders are legally required to adhere to. The Securities and Exchange Act of 1934 is a law that governs the secondary trading of securities in the U.S. … Read more
What Is a Revolver? A revolver refers to a borrower—either an individual or a company—who carries a balance from month to month, via a revolving credit line. Borrowers are only obligated to make minimum monthly payments, which go toward paying interest and reducing principal debt. Revolvers are used in finance by corporations to fund working … Read more
Is Walmart’s Biggest Liability Labor Costs? In a company as large as Walmart Stores Inc (WMT), it can be hard to increase profit by a measurable degree. Increasing margins on soap won’t affect the bottom, nor will saving on nominal expenses like plastic bags. What Walmart can control though, is its labor force. Walmart’s biggest … Read more
Dr. Alexander Elder cleverly named his first indicator Elder ray because of its function, which is designed to see through the market like an X-ray machine. Developed in 1989, the Elder-ray indicator can be applied to the chart of any security and helps traders determine the strength of competing groups of bulls and bears by … Read more