What Is a Capitalized Cost Reduction? A capitalized cost reduction is any upfront payment that reduces the cost of financing. A capitalized cost reduction is generally associated with the purchase of a home or automobile. Reductions can be made from cash, the value of a trade-in vehicle, or through rebates. Key Takeaways Capitalized cost reductions reduce the…
What Is a Perfected Lien? A perfected lien is a lien that has been filed with the appropriate filing agent in order to make the securing interest in an asset binding. A lien is used in secured loans and integrated into the lending contract. Liens can also be involved in other special situations. A perfected lien provides…
From a microeconomics perspective, competition can be influenced by five basic factors: product features, the number of sellers, barriers to entry, information availability, and location. Each factor hinges on the availability or attractiveness of substitutes and, when no alternatives exist and the company is a single seller of a unique product, a monopoly exists and…
142%. That’s the increase in demand for professionals to mow and trim lawns during March, according to data released by Thumbtack, an online platform that connects over 10 million customers with local small businesses. The company says there’s been a dramatic drop in activity last month, especially in San Francisco (-61%), San Jose (-60%) and New…
Pelosi wants a bill bigger than $1 trillion to fund and expand coronavirus assistance programs A targeted approach with health care as priority is what McConnell advocates Trump supports direct payments, more loans for small businesses and infrastructure spending White House officials discuss tax cuts, 50 Year bond, liability waiver for businesses Growing calls for…
What Does Small Minus Big Mean? Small minus big (SMB) is one of the three factors in the Fama/French stock pricing model. Along with other factors, SMB is used to explain portfolio returns. This factor is also referred to as the “small firm effect,” or the “size effect,” where size is based on a company’s…
What Is a Walk-Through Test? A walk-through test is a procedure used during an audit of an entity’s accounting system to gauge its reliability. A walk-through test traces a transaction step-by-step through the accounting system from its inception to the final disposition. However, walk-throughs aren’t required for accountants but can be instrumental in addressing weaknesses…
Shopify Inc. (SHOP) shares fell more than 3% during Tuesday’s session after Raymond James downgraded the stock from Outperform to Market Perform without a price target. Analyst Brian Peterson believes that near-term headwinds could create a more challenging narrative for the stock. He views last week’s guidance withdrawal as an indication of slowing trends in…
Precious metals are often sought after during periods of heightened market volatility because of their historic nature of acting as one of few natural hedges. More specifically, global investors often look to this group within the commodities market as a store of value due to the supply and demand characteristics of the underlying metals. As…