A hypothecation agreement allows a broker-dealer to

June 30, 2024 No Comments

A: A. approve the client for “hot” IPOs. B. hold the margined securities in a street name loan – using the securities as collateral for other means (i.e. bank loans and short sales of other customers). C. hold margined securities in mutual fund accounts and

A hypothecation agreement allows a broker-dealer to

July 7, 2024 No Comments

A hypothecation agreement allows a broker-dealer to

July 9, 2024 No Comments

Are accounts payable an expense?

July 9, 2024 No Comments

A: Accounts payable is a liability, not an expense. The two represent related but ultimately different concepts. The balance of accounts payable is commonly included in total expenses when reviewing a company’s financial statements. The best way to understand how to distinguish between liabilities and

Are all fixed costs sunk costs?

July 9, 2024 No Comments

A: In accounting, finance and economics, all sunk costs are fixed costs. However, not all fixed costs are considered to be sunk. The defining characteristic of sunk costs is that they cannot be recovered. It’s easy to imagine a scenario where fixed costs are not

Are companies with a negative return on equity (ROE) always a bad investment?

July 9, 2024 No Comments

A: Companies that report losses are more difficult to value than those that report consistent profits. Any metric that uses net income is basically nullified as an input when a company reports negative profits. Return on equity (ROE) is one such metric. However, not all

Are depreciation and amortization included in gross profit?

June 30, 2024 No Comments

A: Gross profit is the revenue earned by a company after deducting the direct costs of producing its products. For example, if it costs $15,000 to produce a car, and the car sells for $20,000, the difference of $5,000 is the gross profit on that one car. Gross profit, sometimes referred to as

Are depreciation and amortization included in gross profit?

July 7, 2024 No Comments

Are qualified dividends included in ordinary dividends?

June 30, 2024 No Comments

A: Qualified dividends are included with ordinary dividends in box 1a of the Internal Revenue Service Form 1099-DIV; the box includes all ordinary dividends earned from a particular stock. Box 1b shows the number of the dividends in box 1a that are qualified dividends. The

Are qualified dividends included in ordinary dividends?

July 7, 2024 No Comments

All Rights Reserved