Finance

What is the price-to-book (P/B) ratio? Companies use the price-to-book ratio (P/B ratio) to compare a company’s market capitalization to its book value. It is calculated by dividing the company’s stock price by its book value per share (BVPS). An advantage book value is equal to its book value on the balance sheet, and companies…

What is a short gold ETF? A short gold ETF is a exchange-traded fund (ETF) who seeks to take advantage of a fall in the gold price. Short gold ETFs are also known as inverse gold ETFs, or bear AND F. In some cases, short gold ETFs will offer leverage to investors, so that a…

Honeywell International (HON) generated $34.4 billion in sales for fiscal year 2021. It has successfully solidified itself as a Fortune 500 company by expanding into many industries and offering diverse products. Honeywell’s success is partly attributable to the many acquisitions it has made. Five years of Honeywell strategic plan from 2014 to 2018 requested $10…

The banking sector is the section of the economy devoted to the holding of deposits, the granting of credit, and the trading and investment of financial assets. There are a number of exchange traded funds (ETF) that follow the banking sector. Leveraged ETFs are exchange-traded funds that seek to generate a multiple return (eg, 2x…

What is the SEC Form S-2? The Securities and Exchange Commission’s Form S-2 was a regulatory form of the Security and Exchange Commission (SEC) which served as a simplified registration for the offering of new securities. An SEC filing is a financial statement or other official document filed with the United States Securities and Exchange…

The following is an excerpt from Black Fortunes: The Story of the First Six African Americans Who Escaped Slavery and Became Millionairesby Shomari Wills, which details the origins of Black Wall Street. Ottawa W. Gurley (aka OW) was a turn-of-the-20th century black educator, entrepreneur, and landowner born to former enslaved Africans. In 1889, after resigning…

What is an exchange? An interchange is the transfer of digital information from one computer to another. In business, it usually refers to Electronic Data Interchange (EDI), a system used to communicate strictly formatted messages that represent documents other than monetary instruments. An exchange should not be confused with the interchange rateor “swipe fee”, which…

What is the Basel Committee on Banking Supervision? The Basel Committee on Banking Supervision (BCBS) is an international committee formed to develop banking regulatory standards. As of 2022, it is composed of central banks and other banking regulatory authorities from 28 jurisdictions and has 45 members. Key points to remember The Basel Committee is made…

What is an overline? In the insurance sector, the term “over-line” refers to the part of an insurance company’s coverage that exceeds the normal amount of coverage it provides. Top-up coverage can arise when an insurer guarantees more policies than normal, or when a reinsurer accepts a larger amount of liabilities through a reinsurance contract…