LIFO Method

LIFO Method: Definition – Explanation – Example

LIFO Method – What Is Last In, First Out? The LIFO Method of accounting stands for last-in, first-out. It means the latest purchased or produced goods are considered as sold and expensed first.  In other words, the cost of the most recent product acquired (or created) is the first to […]

Receivership

Receivership – Definition and Impact on Investors

What Is Receivership? Receivership is a court-appointed condition placed on a company to protect property controlled by a person sued in court. It is a legal remedy available to secured creditors to recover outstanding amounts in the event the company defaults on its loan payments.  Receivership and bankruptcy are not […]

Prop Trading

Prop Trading – What Is Proprietary Trading?

Prop Trading – What is Proprietary Trading? Prop trading is the proprietary trading activity that occurs when a bank or firm trades stocks, derivatives, bonds, commodities, or other financial securities on its own behalf for its own economic gain. A financial firm or commercial bank that invests for direct market advantage […]

FPO

FPO Folow-on Public Offer: Meaning – Explanation – Example

FPO – What Is a Follow-on Public Offer? FPO, or Follow-on Public Offer, is how a firm already listed on the stock exchange issues new shares to current shareholders or new investors.  It is a procedure where a firm that is publicly traded issues fresh shares to existing shareholders or […]

Amazon Stock Split

Amazon Stock Split – What It Means To Shareholders

Amazon Stock Split – What Does it Mean to Investors? June 6th, 2022 marked the first trading day after Amazon’s announcement of a 20-for-1 stock split back in March of 2022. After trading above $2000 per share prior to the stock split, Amazon shares were revalued at $120 per share. […]

Bundling

Bundling Definition – What Is Bundle Pricing?

What Is Product Bundling? Product bundling is a marketing technique where several individual goods or services are sold together as a combined package at a lower price than when purchased separately. Companies will combine multiple of their products or services into a single combined bundle.  Most often, at a cheaper […]