What is Marketable Security?

A marketable security, often referred to simply as a marketable, is a financial instrument or investment that can be easily bought or sold in the secondary market, where investors trade securities among themselves. These securities are typically issued in the primary market, where the initial sale or issuance occurs, but their subsequent trading and exchange … Read more

What is Treasury Stock?

Treasury stock, often referred to as treasury shares or reacquired stock, represents shares of a company’s stock that were initially issued to investors and subsequently repurchased by the company itself. These repurchased shares are held in the company’s treasury, which is why they are called treasury stock. Key points to understand about treasury stock include: … Read more

What is Accounting?

Accounting is the systematic process of recording, analyzing, summarizing, and reporting financial transactions and information related to an individual, business, or organization. It serves as the language of business, providing a means to track, measure, and communicate an entity’s financial activities. Here are the key components and aspects of accounting:   Recording: Accountants record financial … Read more

What is Business?

Business is a broad and multifaceted term that encompasses a wide range of activities, but at its core, it refers to the pursuit of profit through the provision of goods or services to consumers.  Here is a concise definition:  Business is the organized effort or activity of individuals or entities that involves the production, purchase, … Read more

What is a Mortgage?

A mortgage is a financial arrangement that allows individuals and families to purchase real estate, such as a home, by borrowing money from a lender, typically a bank or mortgage company. The core concept of a mortgage is that it uses the purchased property as collateral to secure the loan. In other words, the property … Read more

What is a Note receivable?

A “Note Receivable” is a financial instrument representing a debt owed by a borrower to the holder of the note. It is a written promise or guarantee of payment, usually specifying the amount of money to be repaid and the terms and conditions of the repayment. Key characteristics of a Note Receivable include:   Unpaid … Read more

What is Liability?

A liability is a financial obligation or debt that an individual, organization, or entity owes to another party. It represents a responsibility to pay a specific amount in money, goods, or services at a future date or under certain conditions. Liabilities are a fundamental concept in financial accounting and are recorded on a balance sheet, … Read more

What is Bond?

A bond is a financial instrument that plays a vital role in the world of finance and investment. It represents a formal agreement between two parties: the issuer and the bondholder. The issuer can be a government, municipality, corporation, or any entity in need of capital to fund various activities or projects. When an individual … Read more

What is Sinking Fund?

A sinking fund is a financial mechanism that allows individuals, businesses, and organizations to set aside money regularly for specific, anticipated future expenses or financial goals. It’s a disciplined savings strategy designed to ensure that funds are readily available when needed, thereby mitigating the need for loans or financial stress. Sinking funds operate on the … Read more

What is Amortization?

Amortization is a financial process that involves the gradual repayment of a debt or the reduction of an intangible asset’s value over time. It is a common concept in both accounting and finance and has different applications in these fields.   Debt Amortization:    In the context of debt, amortization refers to the systematic repayment of … Read more