A stock option is a contract between two parties, like a company and an employee, that gives the owner of the option the right, but not the obligation, to purchase or sell stocks at an agreed-upon price. Basically, if you own a stock option, you have the option to buy or sell the underlying stocks. …
An acquisition is a business transaction that occurs when one company purchases and gains control over another company. These transactions are a core part of mergers and acquisitions (M&A), a career path in corporate law or finance that focuses on the buying, selling, and consolidation of companies. In this guide, we’ll cover: What Is a …
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A business valuation is a way to determine how much a company is worth. Determining the value of a business is important in many contexts, such as for tax purposes or selling a company. In this guide, we’ll go over: What Is Business Valuation Used For? Knowing how much a business is worth can be …
Stock charts are graphs that show how a company’s publicly traded shares are performing. Understanding how to read stock charts is a vital skill for both professional and amateur investors. Using a stock market graph, you can learn about a company’s historical financial performance and watch how a company’s stock price fluctuates throughout the day …
Comparable company analysis is a way to determine how much a company is worth by comparing it to other companies of similar size in similar industries. Finance and investment banking professionals rely on comparable company analysis to inform mergers and acquisitions (M&A) and investing decisions. Other names professionals sometimes use for comparable company analysis include …
CAGR, which stands for compound annual growth rate, is the rate at which an investment grows. Finance professionals calculate the CAGR for investments between two points in time (typically years or months) to understand how well the investment performed in that period. Compound annual growth rates are useful for comparing the historical performance of investments …
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You don’t need to be the great next American novelist to use writing skills. Writing skills apply to nearly every field, even if you’re not working in a creative career. At work, writing is a hard skill we use to send informative updates, check in with coworkers, document our work, and more. In this guide, …
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Presentation skills aren’t just for school PowerPoints — they’re necessary for various careers and a valuable soft skill for communicating information at work. These skills are vital to advancing your career and making your work stand out, whether you’re presenting data for an analysis project, projections in a finance role, or key takeaways in a …
Common stock is a type of tradeable asset, or security, that equates to ownership in a company. If you own common stock in a company, you have the right to vote on things like corporate policies and board of director decisions. Common stock is just one type of stock traded on public exchanges. In this …
Discounted cash flow (DCF) valuation is a type of financial model that determines whether an investment is worthwhile based on future cash flows. A DCF model is based on the idea that a company’s value is determined by how well the company can generate cash flows for its investors in the future. In this guide, …
Discounted Cash Flow (DCF) Valuation: The Basics Read More »
