Residual Income Formula

Residual Income Formula – How to Calculate Residual Income

Residual Income Formula Residual Income Formula = Controllable Margin – Average of Operating Assets x Required Rate of Return Controllable margin – is also known as segment margin.  It refers to the project’s revenue minus expenses. The required rate of return is the minimum amount of return that a company […]

Marketable Securities

Marketable Securities Definition – Types – Examples

What are Marketable Securities Marketable securities are liquid financial instruments.  They can be quickly converted into cash at a reasonable price. The liquidity of marketable securities comes from the fact that the maturities tend to be less than one year.  Also, the rates at which they can be bought or sold […]

Marginal Cost

Marginal Cost Definition – Finding the Marginal Cost of Production

What Is the Marginal Cost of Production? The marginal cost of production is the change in total production cost that comes from making or producing one additional unit. To calculate marginal cost, divide the change in production costs by the change in quantity. The purpose of analyzing marginal cost is […]

Selling Puts

Selling Puts – Selling Put Options for Income to Benefit in Any Market

Selling Puts – Selling Put Options for Income to Benefit in Any Market Selling puts is also called writing a put option.  It allows an investor to potentially own the underlying security at a future date and a potentially more favorable price. In other words, selling put options allows market […]

Theta Options

Theta Options Explained – What is Theta in Options Trading?

What is Theta in Options Trading – What Is Theta? Theta in Options Trading: The term theta for options trading refers to the rate of decline in the value of an option due to the passage of time. It can also be referred to as the time decay of an option. […]

Palladium ETF

Palladium ETF – How to Invest in Palladium Stocks & Funds

Palladium ETF – Exchange Traded Fund A palladium ETF tracks the precious metal palladium.  Buying into a palladium ETF allows equity-like trading and holding of the precious metal.  Exchange-traded funds (ETFs) typically offer investors exposure to precious metals but primarily focus on gold and silver. A palladium ETF is a […]