Noise Trader Definition

What is a Noise Trader? Noise trader is generally a term used in academic finance studies associated with the Efficient Markets Hypothesis (EMH). The definition is often vaguely stated throughout the literature though it is mainly intended to describe investors who make decisions to buy or sell based on factors they believe to be helpful but in reality will give …

Read More »

Paper Profit (Paper Loss) Definition

What is a Paper Profit (Paper Loss)? A paper profit or loss is an unrealized capital gain (or capital loss) in an investment. For a purchased long investment, it is the difference between the current price and the purchase price. For a sold or short investment, it is the difference between the price when sold short and the current price. …

Read More »

Top 14 dumb things we owe to old people (those sucky people)

The old people are endearing, the advertisements with sad grandpas make us cry in two seconds, and there’s nothing cuter than a gaga granny, I admit. But still… They don’t always make our life easier! Frankly, there are times, when it was necessary to make choices, they all decided to move forward united in the worst direction, what. NICE for …

Read More »

Meaning, Causes, How To Test, and How To Record

What Is an Impaired Asset? An impaired asset is an asset that has a market value less than the value listed on the company’s balance sheet. When an asset is deemed to be impaired, it will need to be written down on the company’s balance sheet to its current market value. Key Takeaways Assets should be tested for impairment on …

Read More »

Should Companies Always Have High Liquidity?

What Is High Liquidity? A company’s liquidity indicates its ability to pay debt obligations, or current liabilitieswithout having to raise external capital or take out loans. High liquidity means that a company can easily meet its short-term debts while low liquidity implies the opposite and that a company could imminently face bankruptcy. Key Takeaways: Liquidity ratios are an important class …

Read More »

Top 20 Boomer T-Shirts That Are Awkward and Unfunny

Boomers often have weird delusions: telling us it was better before, telling us that they were offered an orange for Christmas, and wearing boomer t-shirts. But what if, you know, those kind of t-shirts with “humorous” messages that turn out to be way more embarrassing than funny? We don’t know why they inflict their lack of taste on us, but …

Read More »

Unusual Item Definition

What is an Unusual Item? An unusual item is a nonrecurring or one-time gain or loss that is not considered part of normal business operations. Unusual gains or losses may be recorded on the income statement as a separate component of income from continuing operations, or alternatively, may be identified in the footnotes to the financial statements or the management …

Read More »