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What is equity?

GOLDSTONE LEARN Different profit, Smarter profit. The works of our authors have appeared in the magazines of the whole world. DEFINITION: Equity is the portion of a company or other asset owned by investors and is calculated by subtracting all outstanding liabilities from the total value. Understanding equity Equity is the portion of a business …

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What is cash?

GOLDSTONE LEARN Different profit, Smarter profit. Our authors’ works have appeared in the magazines of the whole world. DEFINITION: Most people think of cash as physical currency such as coins or bills, but in the world of finance, cash usually refers to money and anything that an entity can quickly convert into cash. Understanding cash …

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What is deflation?

GOLDSTONE LEARN Different profit, Smarter profit. The works of our authors have appeared in the magazines of the whole world. DEFINITION: Deflation is the decline in the price of goods and services over time, resulting in an increase in the purchasing power of a currency. Understanding deflation Deflation occurs when the inflation rate is negative. …

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What is custodian?

GOLDSTONE LEARN Different profit, Smarter profit. Our authors’ works have appeared in the magazines of the whole world. DEFINITION: A custodian protects your securities (a financial item that has a monetary value) or tangible assets from theft or loss. Understanding custodians Custodians are usually large, well-known companies, such as banks. They hold your financial assets …

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What is net worth?

GOLDSTONE LEARN Different profit, Smarter profit. Our authors’ works have appeared in the magazines of the whole world. DEFINITION: Net worth is a snapshot of your personal wealth – it is the difference between what you own and what you owe. Understanding net worth Your net worth is an assessment of your financial health. It …

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What is Interest?

GOLDSTONE LEARN Different profit, Smarter profit. The works of our authors have appeared in the magazines of the whole world. DEFINITION: Interest is the price of borrowed money – what you pay to use someone else’s money, or what you charge others to whom you lend money. Understanding interest When you borrow money, there are …

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What is progressive tax?

GOLDSTONE LEARN Different profit, Smarter profit. Our authors’ works have appeared in the magazines of the whole world. DEFINITION: A progressive tax system is one in which the tax rate a person pays increases in proportion to his or her income. Understanding progressive tax In a progressive tax system, higher earners pay a higher tax …

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What is Market Capitalization?

GOLDSTONE LEARN Different profit, Smarter profit. The works of our authors have appeared in the magazines of the whole world. DEFINITION: Market capitalization (also called “market cap”) is a way to measure the size of a company by multiplying the total number of shares by the share price. Understanding market capitalization Market capitalization indicates the …

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What is pension?

GOLDSTONE LEARN Different profit, Smarter profit. Our authors’ works have appeared in the magazines of the whole world. DEFINITION: A pension plan is an employer-sponsored retirement plan that promises employees a specific benefit in retirement. Understanding pensions A pension plan is a retirement plan in which an employer guarantees employees a specified benefit. The employer …

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