What Is Direct to Consumer Advertising (DTC Advertising)? Direct to consumer advertising (DTC advertising) is marketing that is aimed toward consumers when access to a product may require an intermediary. Direct to consumer (or D2C) advertising may utilize print, social media, TV, radio, and other forms of media with the goal of informing a customer…
What Is Comparative Advertising? Comparative advertising is a marketing strategy in which a company’s product or service is presented as superior when compared to a competitor’s. A comparative advertising campaign may involve printing a side-by-side comparison of the features of a company’s products next to those of its competitor. It may also feature a comparison…
What Is Capital at Risk (CaR)? Capital at risk (CaR) refers to the amount of capital set aside to cover risks. It applies to entities and people who are self-insured, as well as to insurance companies that underwrite insurance policies. Capital at risk can be used to pay losses or it can be used by investors…
In accounting, an asset retirement obligation (ARO) describes a legal obligation associated with the retirement of a tangible, long-lived assetwhere a company will be responsible for removing equipment or cleaning up hazardous materials at some future date. AROs should be included in a company’s financial statement to present a more accurate and holistic snapshot of…
Indicators, such as moving averages and Bollinger Bands®are mathematically-based technical analysis tools that traders and investors use to analyze the past and anticipate future price trends and patterns. Where fundamentalists may track economic data, annual reports, or various other measures of corporate profitability, technical traders rely on charts and indicators to help interpret price moves….
What Is a Loss Payable Clause? A loss payable clause is an insurance contract endorsement where an insurer pays a third party for a loss instead of the named insured or beneficiary. The loss payable provision limits the rights of the loss payee to be no higher than the rights guaranteed to the insured. A…
What Is an Accounts Payable Subsidiary Ledger? An accounts payable subsidiary ledger is an accounting ledger that shows the transaction history and amounts owed to each supplier and vendor. An accounts payable (AP) is essentially an extension of credit from a supplier that gives a business (the buyer in the transaction) time to pay for the…
What Are Participatory Notes? Participatory notes also referred to as P-notes, or PNs, are financial instruments required by investors or hedge funds to invest in Indian securities without having to register with the Securities and Exchange Board of India (SEBI). P-notes are among the group of investments considered to be Offshore Derivative Investments (ODIs). Any dividends…
What Is the Sum-of-the-Parts Valuation – SOTP? The sum-of-the-parts valuation (SOTP) is a process of valuing a company by determining what its aggregate divisions would be worth if they were spun off or acquired by another company. The valuation provides a range of values for a company’s equity by aggregating the standalone value of each…