What Is the Working Class? “Working class” is a socioeconomic term used to describe persons in a social class marked by jobs that provide low pay, require limited skill, or physical labor. Typically, working-class jobs have reduced education requirements. Unemployed persons or those supported by a social welfare program are often included in the working class….
Do You Include Working Capital in Net Present Value (NPV)? Analyzing an investment before jumping in is a laborious, yet crucial, step. Figuring out how much a company is worth is essential to figuring out if the company’s stock is over or under priced. Net present value (NPV) is one of the main fundamental valuation…
Managed health care giant UnitedHealth Group Incorporated (UNH) has a winning streak of beating earnings per share (EPS) estimates in 25 consecutive quarters. The stock is in bear market territory at 21% below its all-time intraday high of $306.71 set on Feb. 19. The stock is also in bull market territory at 29.2% above its…
What Is Consequential Loss? A consequential loss is an indirect adverse impact caused by damage to business property or equipment. A business owner may purchase insurance to cover any damage to property and equipment, and may also obtain coverage for secondary losses. A consequential loss policy or clause will compensate the owner for this lost…
Health care giant Johnson & Johnson (JNJ) is a component of the Dow Jones Industrial Average. The company has a winning streak of beating earnings per share (EPS) estimates in 30 consecutive quarters. The stock is in bear market territory at 20.3% below its all-time intraday high of $154.50 set on Feb. 6, but the…
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…
What Is the Banking and Securities Industry Committee (BASIC)? The Banking and Securities Industry Committee (BASIC) was established in 1970 to standardize, automate, and streamline the processing of stock certificates and options. This committee sought to uphold uniform rules and regulations regarding the trading and settlement of securities. The Banking and Securities Industry Committee attempted…
What Is an Installment Sale? An installment sale is one of several possible approaches to revenue recognition under the rules of Generally Accepted Accounting Principles (GAAP). More specifically, this method accounts for when revenue and expense are recognized at the time of cash collection rather than at the time of sale. Based on GAAP, this…
What Is the Private Securities Litigation Reform Act (PSLRA)? The Private Securities Litigation Reform Act (PSLRA) is a piece of legislation passed by Congress in 1995 to stem the filing of frivolous or unwarranted securities lawsuits. The Private Securities Litigation Reform Act increased the amount of evidence that plaintiffs are required to present before filing…