JPMorgan Chase & Co. announced the creation of JPM Coin, a digital token representing a fiat currency, in a news release issued in February 2019. JPM Coin uses blockchain technology that will facilitate the transfer of payments between institutional clients. The coin is fundamentally different from cryptocurrencies like Bitcoin. Most significantly, it is redeemable at…
The capital-to-risk weighted assets ratio, also known as the capital adequacy ratiois one of the most important financial ratios used by investors and analysts. The ratio measures a bank’s financial stability by measuring its available capital as a percentage of its risk-weighted credit exposure. The purpose of the ratio is to help banks protect their…
Taking a road trip across the United States offers an alternative to flying that can be more fun and, sometimes, less expensive. If your point of origin and destination are not located near major airports that offer an abundance of cheap flights, then the price of an airline ticket can be steep. Although oil prices…
At first glance, credit services companies appear to be front-line casualties as governments impose travel bans and implant social distancing measures to limit the impact of the deadly coronavirus. Understandably, severely reduced consumer spending on everything from upcoming summer vacations to restaurants has prompted many industry stalwarts to slash quarterly and yearly earnings projections. However, judging…
What Is Earnings Before Interest, Depreciation and Amortization ( EBIDA)? Earnings before interest, depreciation and amortization (EBIDA) is a measure of the earnings of a company that adds the interest expense, depreciationand amortization back to the net income number. However, it does include tax expenses. This measure is not as well known or used as…
What Is International Finance? International finance, sometimes known as international macroeconomics, is the study of monetary interactions between two or more countries, focusing on areas such as foreign direct investment and currency exchange rates. Key Takeaways International finance is the study of monetary interactions that transpire between two or more countries. International finance focuses on…
What Are Progress Billings? Progress billings are invoices requesting payment for work completed to date. Progress billings are prepared and submitted for payment at different stages in the process of a major project. This type of billing is common in projects that last a long time. It allows the person billing—usually a contractor—to fund the…
What Is a Fractional Share? Less than one full share of equity is called a fractional share. Such shares may be the result of stock splits, dividend reinvestment plans (DRIPs), or similar corporate actions. Typically, fractional shares aren’t available from the stock market, and while they have value to investors, they are also difficult to sell. Key…
What Is Deferred Income Tax? A deferred income tax is a liability recorded on a balance sheet resulting from a difference in income recognition between tax laws and the company’s accounting methods. For this reason, the company’s payable income tax may not equate to the total tax expense reported. The total tax expense for a specific…