A cash disbursement is the systematic release of funds from a company's treasury to fulfill financial obligations, including all outgoing monetary transactions that a business executes.
Read More →Common stock represents the fundamental ownership units of a corporation, entitling holders to a portion of the company's success and a voice in its governance.
Read More →Convertible Equity is a financing instrument used primarily by startups that allows investors to convert their investment into equity at a later financing round, bypassing the need for an immediate valuation. This approach streamlines early-stage funding by deferring detailed negotiations until more data is available.
Read More →Cost of Goods Sold (COGS) represents the direct expenses incurred in creating products or services that your business sells to customers. Think of it as the "recipe cost" of your business offerings—the ingredients and direct labor that go into your revenue-generating products.
Read More →An equity stake represents an ownership portion in a business entity, typically measured as a percentage of the total company. This ownership interest grants the stakeholder certain rights and potential returns proportional to their share of the enterprise.
Read More →The Expense Recognition Principle, often referred to as the matching principle, mandates that expenses be recorded in the same period as the revenues they help generate, ensuring an accurate reflection of a company’s financial performance.
Read More →The Federal Unemployment Tax Act (FUTA) is a federal law that imposes a payroll tax on employers to help fund unemployment benefits. It underpins state unemployment insurance programs by providing a financial safety net for workers.
Read More →Free Cash Flow represents the cash a company generates from its operations after subtracting capital expenditures—investments in long-term physical assets like equipment, facilities, and technology infrastructure.
Read More →Fully Diluted Shares represent the total number of shares that would be outstanding if all convertible securities, options, warrants, and other potential sources of equity were exercised. This metric provides a comprehensive view of a company's potential equity distribution.
Read More →Month Over Month (MoM) analysis compares financial metrics from one month to the immediately preceding month, providing a short-term view of business performance trends and momentum.
Read More →Net Operating Income, commonly abbreviated as NOI, serves as a fundamental gauge of a business's operational health. It represents the revenue generated from primary business activities after subtracting all operational expenses, but before accounting for interest payments, taxes, and capital expenditures. Think of NOI as the pulse check of your business's day-to-day operations.
Read More →Peer-to-peer (P2P) lending is a decentralized financing model that connects individual borrowers directly with individual lenders through online platforms, bypassing traditional financial intermediaries.
Read More →Preferred stock stands as a distinctive financial instrument that bridges the gap between debt and equity, offering investors a unique combination of ownership stake and income potential. Often described as a "hybrid security," preferred shares provide higher dividend priority than common stock while sacrificing some of the growth potential and decision-making rights.
Read More →A priced round is a financing round where the company's valuation is explicitly determined, and new shares are issued at a set price, granting investors an immediate equity stake.
Read More →A private placement represents a strategic funding mechanism where companies issue securities—including equity shares, bonds, or other debt instruments—to a carefully selected group of sophisticated investors, bypassing the public markets. Unlike public offerings, these transactions occur behind closed doors, enabling businesses to secure crucial growth capital while maintaining greater control over their investor relationships.
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