Definition of code of ethics (business): A reference guide providing guidance to employees to help them understand expected behaviours and guide them through moral dilemmas. What is a code of …
Chief Executive Officer (CEO) – Definition
Definition of the chief executive officer (CEO): The highest-ranking manager in an organisation, who is ultimately responsible for decision-making. The best entrepreneurship books and management books will regularly use the …
Business Model – Definition
Definition of business model: The way in which a business adds value, creates a product or service and delivers it to the customer. What is a business model? A business …
Business Ethics – Definition
Definition of business ethics: A strand of applied ethics, which explores moral dilemmas and ethical decision-making in a business context. What is business ethics? Business ethics is a practical branch …
Break-Even Analysis – Definition
Definition of break-even: The point at which the net income generated from an investment decision has covered the costs. You’ll often read the term ‘break-even’ in financial management books & …
Bankruptcy – Definition
Definition of bankruptcy: The legal process initiated when an individual or company is unable to repay their debts. What is bankruptcy? Bankruptcy means different things in different countries. Bankruptcy is …
Year to Date (YTD) – Definition
Definition of year to date (accounting): The cumulative financial result from the start of the latest accounting year until the present day. What is Year to Date (YTD)? Year to …
Variable Cost – Definition
Definition of variable cost: an expense which increases or decreases proportionately to revenue. What is a variable cost? A variable cost is also known as a direct cost, because of …
Turnover – Definition
Definition of turnover (accounting): Income. Turnover is used interchangeably with revenue and gross income in the context of financial reporting. What is turnover? Turnover is an accounting term used most …
Quality of Earnings – Definition
Definition of quality of earnings: The extent to which the profits reported by a company are likely to recur as they are driven by the core operating activities of the …
Profit – Definition
Definition of profit (investing): a financial gain, measured as the difference between the income and the costs of a particular investment or activity. What is profit? Profit is measured as: …
Overheads – Definition
Definition of overheads: A business cost which is not directly linked to production or the provision of a service. What are overheads? Overhead is a name given to the collection …
Overdraft – Definition
Definition of overdraft: A short term borrowing facilility, with a pre-agreed borrowing limit, which is repayable on demand What is an overdraft? An overdraft is a short term, unsecured bank …
Onerous Contract – Definition
Definition of onerous contract: An agreement which commits a business to obligations which will generate losses. What is a onerous contract? No business wishes to be party to an onerous …
Net Asset Value (NAV) – Definition
Definition of Net Asset Value (NAV): The current market value of the underlying investments held in a fund. What is the Net Asset Value (NAV)? The net asset value of …
Liability – Definition
Definition of liability (accounting): A present obligation arising from past events. What is a liability? A liability is something a business will need to settle or pay in the future. …
Journal Entry – Definition
Definition of journal (accounting): An accounting record of a single transaction, in the ‘double entry’ accounting format. What is a journal? In simple English, a journal entry is an instruction …
Joint Venture – Definition
Definition of joint venture (business): A formal partnership between two independent organisations, which sees the partners share resources to achieve a common objective. Definition of joint venture (accounting): An arrangement …
The Best Investing Courses for Stocks & Shares
Stocks and shares are the most popular form of non-cash investment the world over. Stocks & shares (also known as equities) usually make up the core holding in moderate to …
How Much are Financial Advisers Paid?
The financial adviser career path is quite an attractive one to anyone looking for a financial career. An office location, a client-facing role, supported by a base of technical expertise. …
International Financial Reporting Standards (IFRS) – Definition
Definition of International Financial Reporting Standards (IFRS): A widely used set of accounting and financial reporting rules which are applied by most public companies in the creation of their financial …
Income Statement – Definition
Definition of the income statement: A financial report which presents a company’s income and expenses for a financial period, in a prescribed format. What is the income statement? The income …
Income – Definition
Definition of income (accounting): Income is also known as revenue or turnover, and represents the amount of money a business earns by providing products and services to customers. Definition of …
Holding Company – Definition
Definition of holding company: A legal entity with a primary purpose of owning an equity stake in other companies. What is a holding company? A holding company in the UK …
Gross Profit – Definition
Definition of gross profit: gross profit is a measure of profit calculated by deducting direct costs (also known as cost of goods sold) from revenue. What is gross profit? Gross …
Gross Margin – Definition
Definition of gross margin: A ratio expressing gross profit as a percentage of revenue. Gross margin is also known as gross profit margin. How to calculate gross margin Here’s an …
Goodwill – Definition
Definition of goodwill (accounting): Goodwill represents the excess price for an asset over and above the identifiable fair value of an asset. What is goodwill? Goodwill is quite a complex …
Generally Accepted Accounting Principles (GAAP) – Definition
Definition of generally accepted accounting principles (GAAP): A comprehensive set of accounting and reporting standards which govern how companies financial statements record, measure, and disclose their financial transactions. What are …
General Ledger – Definition
Definition of general ledger: The primary set of accounts used to store and summarise the transactions of a company. What is the general ledger? It’s easiest to see the general …
Financial Statements – Definition
Definition of financial statements: A periodic report which discloses the financial performance and financial position of a company, along with other necessary disclosures. What are financial statements? Financial statements are …
Escrow – Definition
Definition of escrow: A neutral third party who stands between two transacting parties to provide assurance that both will honour their obligations. What does escrow mean? Not all third parties …
Equity – Definition
Definition of equity (finance): the element of a organisations total value which is attributable to its shareholders Definition of equity (accounting): the book value of assets minus liabilities. The net …
Deferred Consideration – Definition
Definition of deferred consideration: An element of a purchase price which is only settled in cash at much later date than the transaction. What does deferred consideration mean In the …
Debenture – Definition
Definition of debenture: A long term business loan which is ‘secured’ against the assets of the company. This is a UK definition. What does debenture mean In the UK, a …
Cost of Goods Sold (COGS) – Definition
Definition of cost of goods sold (COGs): Costs of a business which can be directly attributed to revenue generated during the same financial period. What does cost of goods sold …
Capital Expenditure – Definition
Definition of capital expenditure (accounting): An outlay of a company’s funds on the purchase of equipment, tooling, machinery or sometimes property. Capital expenditure is often shortened to ‘capex’ when spoken …
Capital – Definition
Definition of capital (economics): Capital in economics represents the wealth of tangible assets and other resources which can be put to use to provide goods and services. Definition of capital …
Budget – Definition
Definition of budget (business): A long term financial plan which shows how a company plans to achieve its objectives. A summary of the income and expenditure a company will spend …
Balance Sheet – Definition
Definition of the balance sheet: The balance sheet is a key report in the financial statements of a company. In a tabular format, the balance sheet sets out the assets …
Asset – Definition
Definition of asset: An asset is a contractual right to a future economic benefit. Informally, it can also refer to anything or anyone of value. What does asset mean? Said …
Historical Real Investment Returns by Asset Class and Country
Are you looking for the historical return for equities, corporate bonds and short term government treasury bills? I thought I’d share a useful set of average historical annual returns for …
An Overview of the 9 Major Asset Classes
Asset classes are the raw ingredients for an investment portfolio. How you decide to blend together these different types of investments will determine the expected return, the risk and the liquidity profile of your holdings.
Real House Price Growth History Chart (UK – 1988 – 2020)
I was recently disappointed at the availability of real house price growth charts online, so I decided to publish my own here on Financial Expert. Everyone in the UK will …
Do Day Trading Strategies and Blueprints work?
Welcome to a supplementary article to our beginner’s guide to day trading. Day trading is difficult, more much difficult than many online marketers would have you believe. But do day trading …
How Much Money Do you Need to Begin Day Trading?
How much money do you need to begin day trading? This is a common question, asked by beginners who are keen to understand if they have enough cash to run …
How Easy or Difficult is Day Trading?
If you look online to find out how easy or difficult is day trading, you will probably come across a lot of marketing material. These may be ads for training …
The Drawbacks of Day Trading
Many ‘get rich quick’ schemes on the web currently holding up day trading as an easy way to make a quick buck. But there are drawbacks of day trading that these …
Day Trading – A Beginners Guide
Day trading is a fast-paced, technically demanding and potentially lucrative form of investing. It carries prestige and risk in equal measure. This is the Financial Expert beginners guide to day …
The Different Types of Financial Advisers
You often hear the term ‘financial adviser’, meaning a finance professional who will design an investment plan for you and recommend specific investment products. It’s also a loose term – …
The Perks of Sending Money Online
Have a look around you, how many of the people you know have relatives who live abroad? Almost every family does know at least one person who lives or has …