Author: Harper Cole
Harper Cole is an experienced financial professional with more than 9 years working with financial planning, derivatives, equities, fixed income, project management, and analytics. Highlights from his career in the securities industry include implementing firm-wide technology migrations, conducting education for financial planners, becoming a subject matter expert on regulatory changes, and trading a variety of derivatives. Chartered Leadership Fellow at the American College of Financial Services, he coached and supervised financial planners on making suitable recommendations of complex financial products.
IntroductionCapitalization is a term used in finance to refer to the total amount of money that a company has available to fund its operations. This includes both debt and equity capital. Debt capital is money that is borrowed from lenders, such as banks, while equity capital is money that is invested by shareholders. Capitalization is an important concept in finance because it helps to determine a company’s financial health and ability to pay its debts. It is also used to measure the size of a company and its potential for growth.What is Capitalization and How Does it Impact Financial Decisions?Capitalization…
IntroductionCapital gains tax is a tax imposed on the profits from the sale of certain types of assets. It is calculated by subtracting the purchase price of the asset from the sale price and then multiplying the difference by the applicable tax rate. Capital gains tax is typically imposed on investments such as stocks, bonds, real estate, and other capital assets. The amount of capital gains tax owed depends on the type of asset, the length of time it was held, and the taxpayer’s income level. Capital gains tax can be a significant source of revenue for governments, and it…
IntroductionCapital flight is the movement of capital from one country to another, usually in the form of investments, deposits, or other financial assets. It is a phenomenon that has been observed in many countries, and it can have a significant impact on the economies of those countries. Capital flight can lead to a decrease in foreign investment, a decrease in the value of the local currency, and an increase in the cost of borrowing. It can also lead to a decrease in economic growth and an increase in unemployment. In some cases, capital flight can even lead to political instability.…
IntroductionCapital expenditure (CAPEX) is a type of business expenditure that is used to acquire, maintain, or improve a long-term asset. It is a non-recurring expense that is recorded on the balance sheet as an asset. CAPEX is an important part of a company’s financial statements as it affects the company’s ability to generate future income. CAPEX can be used to purchase new equipment, upgrade existing equipment, or build new facilities. It can also be used to purchase intangible assets such as patents, copyrights, and trademarks. CAPEX is an important part of a company’s financial planning and can have a significant…
IntroductionCapital budgeting is the process of evaluating and selecting long-term investments that are expected to yield positive returns. It is a critical decision-making tool for businesses, as it helps them determine which investments will generate the highest returns and which ones should be avoided. Capital budgeting involves analyzing the costs and benefits of a proposed investment, such as the purchase of a new piece of equipment or the expansion of a business. It also involves forecasting the future cash flows associated with the investment and assessing the risk associated with it. By using capital budgeting, businesses can make informed decisions…
IntroductionCapital asset is an asset with a useful life of more than one year that is used in the production or supply of goods and services. It is an asset that is expected to generate income or appreciation over time. Capital assets are important in finance because they are used to generate income, increase wealth, and provide security. Capital assets can include stocks, bonds, real estate, and other investments. They can also include tangible assets such as machinery, equipment, and vehicles. Capital assets are important because they provide a source of income and can be used to diversify a portfolio.…
IntroductionCapital is a term used in finance to refer to financial assets or resources that can be used to generate income. It can refer to money, property, or other assets that can be used to generate income. Capital can also refer to the total value of a company’s assets, including cash, investments, and other resources. There are two main types of capital: equity capital and debt capital. Equity capital is money invested in a company by its owners or shareholders, while debt capital is money borrowed from lenders. Both types of capital are important for businesses to grow and succeed.What…
IntroductionA candlestick chart is a type of financial chart used to track price movements of a security, derivative, or currency. It is a combination of a line-chart and a bar-chart, in that each bar represents the range of price movement over a given time interval. The body of the candlestick is shaded either green or red, depending on whether the closing price is higher or lower than the opening price. The wicks of the candlestick represent the highest and lowest prices of the given time interval. Candlestick charts are used in technical analysis to identify potential trading opportunities. By analyzing…
IntroductionA call option is a type of financial derivative that gives the holder the right, but not the obligation, to buy an underlying asset at a predetermined price (the strike price) on or before a predetermined date (the expiration date). Call options are used in trading to speculate on the future price of an asset, hedge against risk, or generate income. They are also used to gain exposure to an asset without having to purchase it outright.What is a Call Option and How Can It Be Used in Trading?A call option is a type of financial derivative that gives the…
