Tag: funds

Business Development Company – BDC definition explanation

What is Business Development Company – BDC?
A company that is created to help grow small companies in the initial stages of their development. BDCs are very similar to venture capital funds. Many BDCs are set up much like closed-end investment funds and are actually public companies that are listed on the NYSE, AMEX and Nasdaq. Read more for examples and further explanation including related video clips and also comments
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Accumulation Plan definition explanation

What is Accumulation Plan?
1. A general financial strategy in which an investor attempts to build the value of his or her portfolio to a desired size.

2. In the context of mutual funds, a formal arrangement in which an investor contributes a specified amount of money to the fund on a periodic basis. By doing so, the investor accumulates a larger and larger investment in the fund through his or her contributions and the increase in value of the fund’s portfolio. Read more for examples and further explanation including related video clips and also comments
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Profit-Sharing Plan definition explanation

What is Profit-Sharing Plan?
A plan that gives employees a share in the profits of the company. Each employee receives a percentage of those profits based on the company’s earnings.

Also known as “”deferred profit-sharing plan”” or “”DPSP””. Read more for examples and further explanation including related video clips and also comments
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Inbound Cash Flow definition explanation

What is Inbound Cash Flow?
Any currency that a company or individual receives through conducting a transaction with another party. Inbound cash flow can include sales revenue generated through business operations, refunds received from suppliers, financing transactions and amounts won through legal proceedings. Read more for examples and further explanation including related video clips and also comments
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Debt-Service Coverage Ratio – DSCR definition explanation

What is Debt-Service Coverage Ratio – DSCR?
1. In corporate finance, it is the amount of cash flow available to meet annual interest and principal payments on debt, including sinking fund payments.

2. In government finance, it is the amount of export earnings needed to meet annual interest and principal payments on a country’s external debts.

3. In personal finance, it is a ratio used by bank loan officers in determining income property loans. This ratio should ideally be over 1. That would mean the property is generating enough income to pay its debt obligations.

In general, it is calculated by: Read more for examples and further explanation including related video clips and also comments
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Annual Turnover definition explanation

What is Annual Turnover?
The percentage rate at which a mutual fund or exchange-traded fund replaces its investment holdings on an annual basis. Turnover is meant to adjust for the inflows and outflows of cash and report on the level of trading activity in the fund. Read more for examples and further explanation including related video clips and also comments
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Shanghai Stock Exchange definition explanation

What is Shanghai Stock Exchange?
The largest stock exchange in mainland China, the Shanghai Stock Exchange is a nonprofit organization run by the China Securities Regulatory Commission (CSRC). Stocks, funds and bonds are all traded on the exchange, which has listing requirements including that a company must be in business and be earning a profit for at least three years before joining the exchange. Read more for examples and further explanation including related video clips and also comments
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Musharakah definition explanation

What is Musharakah?
A joint enterprise or partnership structure with profit/loss sharing implications that is used in Islamic finance instead of interest-bearing loans. Musharakah allows each party involved in a business to share in the profits and risks. Instead of charging interest as a creditor, the financier will achieve a return in the form of a portion of the actual profits earned, according to a predetermined ratio. However, unlike a traditional creditor, the financier will also share in any losses. Read more for examples and further explanation including related video clips and also comments
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Energy ETF definition explanation

What is Energy ETF?
A broad class of ETFs that includes funds focused on oil and gas exploration, the generation, distribution and retail sale of gas and other refined products, electric utilities and alternative energy production. Energy ETFs may invest in only United States-based companies, globally based energy companies, or a blend of the two.

The offerings within the energy ETF class include replications of the energy-sector stocks found in the S&P 500, U.S. energy producers, global energy producers and funds of a particular sub-sector designation, such as nuclear, coal, gas, etc. The weighting of stocks within these ETFs can be market-cap based, equally-weighted or fundamentally weighted, based on financial metrics like net earnings and dividend yield. Read more for examples and further explanation including related video clips and also comments
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