management terms
CCC is a metric that expresses the time (measured in days) it takes for a company to convert its investments in inventory and other resources into cash flows from sales. This metric takes into account how much time the company needs to sell its inventory, how much time it takes to collect receivables, and how much time it has to pay its bills without incurring penalties.
If CCC is low or negative number, that means working capital isn’t tied up for long, and business has greater liquidity.
A bubble is a rapid escalation of asset prices followed by a contraction, often created by a surge in asset prices that is fundamentally unwarranted. Changes in investor behavior are the primary causes of bubbles that form in economies, securities, stock markets and business sectors.
Types of Bubbles are-
1- Market Bubble
2- Commodity Bubble
Example- U.S Housing Bubble
It is a debt that has fallen off your credit report but, for various reasons, someone is still trying to collect. Zombie debt has often been long forgotten and has probably been written off as uncollectable. There is no legal obligation to pay back zombie debt, but debt collectors can be aggressive and unscrupulous in their attempts to get people to pay.
A mortgage bond is secured by a mortgage, or a pool of mortgages, that are typically backed by real estate holdings and real property such as equipment. They are tend to be safer than corporate bonds and typically have a lower rate of return.
In the event of a default situation, mortgage bondholders could sell off the underlying property backing a bond to compensate for the default.
A balloon loan is a loan that you pay off with a large single, final payment. Instead of a fixed monthly payment that gradually eliminates your debt, you typically make relatively small monthly payments. But those payments are not sufficient to pay off the loan before it comes due. As a result, you need to make a final “balloon” payment to pay off the remaining loan balance, and that payment may be significant.
An investment banker is an individual who often works as part of a financial institution and is primarily concerned with raising capital for corporations, governments, or other entities.
An investment banker can save a client time and money by identifying risks associated with a particular project before a company moves forward. Businesses and non-profit institutions often turn to investment bankers for advice on how best to plan their development.
A credit rating is a quantified assessment of the creditworthiness of a borrower in general terms or with respect to a particular debt or financial obligation. A credit rating not only determines whether or not a borrower will be approved for a loan or debt issue but also determines the interest rate at which the loan will need to be repaid. A credit rating or score can be assigned to any entity that seeks to borrow money—an individual, corporation, state or provincial authority, or sovereign government.
Credit ratings apply to businesses and government, while credit scores apply only to individuals. An individual’s credit score is reported as a number, generally ranging from 300 to 850.
Hedge funds are alternative investments using pooled funds that employ different strategies to earn active return for their investors. It is important to note that hedge funds are generally only accessible to accredited investors. One aspect that has set the hedge fund industry apart is the fact that hedge funds face less regulation than mutual funds and other investment vehicles.
Key Characteristics:
-They’re only open to “accredited” or qualified investors
-They offer wider investment latitude than other funds
-Fee structure
A budget is an estimation of revenue and expenses over a specified future period of time and is utilized by governments, businesses, and individuals. A budget is basically a financial plan for a defined period, normally a year. It greatly enhances the success of any undertaking. A budget can also aid in setting goals, measuring outcomes and planning for contingencies. Personal budgets are extremely useful in managing an individual’s or family’s finances over both the short and long term horizon.
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