What Is a Venture Capital Trust (VCT)? The term venture capital trust (VCT) refers to an investment vehicle that operates in the United Kingdom. The VCT is a closed-end fund that was created by the U.K. government in the 1990s to help direct investment into local private businesses. These funds are tax-efficient and allow individual…
In finance, a company’s gross margin is simply the difference between revenue and cost of goods sold (COGS) divided by that revenue figure. Unlike gross profitswhich are expressed as absolute dollar amounts, gross margins are expressed in percentage forms. The calculation for gross margin is expressed by the following equation: Gross Margin = ( Revenue…
What Are Water Rights? Water rights pertain to the legal rights of property owners to access and use bodies of water adjacent to lands they hold. Different types of waters rights exist based on various forms of water that border or exist on a property. In the United States, water rights can vary in the…
What Is a Zero-Lot-Line House? A zero-lot-line house is a piece of residential real estate in which the structure comes up to, or very near to, the edge of the property line. Rowhouses, garden homes, patio homes, and townhomes are all types of properties that may be zero-lot-line homes. They may be attached (as in…
What Is a Leaseback? A leaseback is an arrangement in which the company that sells an asset can lease back that same asset from the purchaser. With a leaseback—also called a sale-leaseback—the details of the arrangement, such as the lease payments and lease duration, are made immediately after the sale of the asset. In a…
While some of the world’s top coffee-producing nations are well-known, others may come as a surprise. More than 70 countries produce coffee, but the majority of global output comes from the top five producers: Brazil, Vietnam, Colombia, Indonesia, and Ethiopia. 1. Brazil The production of coffee has played a pivotal role in the development of…
The Federal Reserve cuts fed funds rate to 0-0.25% to stem crisis Pledges $700 billion in quantitative easing measures Loosens reserve requirement for banks In its latest move to wield monetary policy to combat the economic impact of the coronavirus, the Federal Reserve, on Sunday, lowered the federal funds rate to 0-0.25%, a 1% cut…
What Is a Stabilizing Bid? A stabilizing bid is a purchase of stock by underwriters to stabilize or support the secondary market price of a security immediately following an initial public offering (IPO). After an IPO, the price of the newly issued shares may falter or be shaky in trading. Key Takeaways A stabilizing bid…
What Is Do It Right The First Time (DRIFT)? Do It Right The First Time (DRIFT) is a managerial accounting technique or practice that centers around decreasing waste and increasing efficiency in the production process. Do It Right The First Time is part of inventory management, whereby only the inventory materials that are needed are…