Facility: Definition, Loan Types, and Examples
A facility is a formal financing arrangement a lender makes available to a business so the business can borrow funds for working capital, seasonal…
Face Value: Definition in Finance and Comparison With Market Value
Key takeaways – Face value (also called par value or par) is the nominal dollar value assigned to a security by its issuer. –…
FAANG Stocks: Definition and Companies Involved
• FAANG = Meta (META), Amazon (AMZN), Apple (AAPL), Netflix (NFLX), Alphabet (GOOG). The acronym names five dominant U.S. technology companies. (Investopedia) – Combined…
1913 Federal Reserve Act: Definition and Why It’s Important
Key takeaways – The 1913 Federal Reserve Act created the Federal Reserve System, the central bank of the United States, to reduce banking panics…
Ex Works (EXW): Definition, Pros and Cons, Plus More Incoterms
Key sources: Investopedia — “Ex Works (EXW)” (Jiaqi Zhou) and International Chamber of Commerce — Incoterms 2020 (ICC) OVERVIEW Ex Works (EXW) is an…
Extrinsic Value: Definition, How to Calculate, and Example
• Extrinsic value (also called time value) is the portion of an option’s market price (premium) that exceeds its intrinsic value. – Extrinsic value…
Extraordinary Item: Definition, How They Work, and Requirements
Key takeaways – “Extraordinary items” historically were gains or losses that were both unusual in nature and infrequent in occurrence, shown separately on the…
Understanding Externalities: Positive and Negative Economic Impacts
An externality occurs when an activity by one party imposes an unpriced cost or benefit on others. That effect—positive or negative—is not reflected in…
Production Externality: Definition, Measuring, and Examples
Key takeaways – A production externality is an unintended side effect of producing goods or services that affects third parties and is not reflected…
External Economies of Scale: Definition and Examples
External economies of scale occur when the average cost of production falls for all firms in an industry as the industry itself grows or…