The process of budgeting for capital expenditures (capex) is essential for a business to operate and grow in a healthy and profitable way. Capital expenditures are expenses a company makes to sustain and expand its business over a period of years. A capital expense is the cost of an asset that has usefulness, helping create…
“It’s better to file for Social Security later rather than earlier,” is common advice spread by financial advisors and laymen alike. After all, if you delay receiving benefits for as long as you can, payments can go up significantly. The advantage of delaying taking benefits will apply (and appeal) to most people. But filing earlier…
There is a variety of market indexes which function as statistical gauges of the market’s activities. Many investors look at the Dow Jones Industrial Average (DIJA) or the Nasdaq Composite Index as benchmarks or representatives of the stock market as a whole. On the downside, these indices are composed of only 30 and 100 stocks,…
Dow component The Home Depot, Inc. (HD) reports fourth quarter 2019 earnings in Tuesday’s pre-market session, with Wall Street analysts expecting earnings per share (EPS) of $2.11 on revenue of $25.8 billion. Market players will be watching results closely after the home improvement giant missed third quarter revenues and lowered fiscal year 2020 guidance in…
Financial accounting is the process by which an organization’s revenue, receivables and expenses are collected, measured, recorded and finally reported into a financial statement. This process is designed to accurately reflect business activity; help companies meet legal, fiscal and statutory requirements; present financial accounts to business owners; allow for in-depth financial analysis; and facilitate efficient…
A credit rating can be the deciding factor on whether a borrower does or does not receive a loan. Good credit ratings allow people, companies, and governments to easily borrow from financial institutions or public debt markets. At the consumer level, banks will usually base the terms of a loan as a function of a…
Over the past quarter of a century, 401(k) plans have evolved into the dominant retirement plan scheme for most U.S. workers. While many improvements have been made to the structure and features of 401(k) plans since their creation, they’re not perfect. There are issues with the current 401(k) structure that make such vehicles less than…
What Is Subprime? Subprime is a below-average credit classification of borrowers with a tarnished or limited credit history, and which are subject to higher than average interest rates. Lenders will use a credit scoring system to determine which loans a borrower may qualify for. Subprime loans carry more credit risk, and as such, will carry…
What Is Tier 3 Capital? Tier 3 capital is tertiary capital, which many banks hold to support their market risk, commodities risk, and foreign currency risk, derived from trading activities. Tier 3 capital includes a greater variety of debt than tier 1 and tier 2 capital but is of a much lower quality than either…