Learn about investing, trading, retirement, banking, personal finance and more.
Burn rate is a term for negative cash flow, or the rate at which a company burns through capital, especially a startup company.
Burn rate is used frequently in the world of startups and venture capital. Using a burn rate, investors can see how much longer operations can be sustained with the capital at hand, and this length of time is called a runway. Startups will normally need at least a few months before they start generating enough revenue to have a positive cash flow. Burn rate is normally expressed as the monthly negative cash flow.
If a burn rate does not give them a long enough runway to get the business on its feet, the burn rate may be reduced by cutting back on expenses or letting some staff go.
Preferred stock are dividend-paying equity shares issued by corporations, which pays a dividend with a higher priority
FICA is a tax on employees and employers that funds the Social Security and Medicare programs of the United States
An ATS is a platform separate from an exchange where securities are traded. ATSs provide marketplaces for buyers and...
Marketable securities is a term referring to assets/securities that can be converted to cash easily, at least in a year
A bond ladder is a portfolio of bonds that have different maturities, that may range from months to years in difference
An asset mix is the blend of major asset classes in a portfolio, which should be constructed based on the risk tolerance
The Capital Account in a company is where paid-in capital, retained earnings, and treasury stock is accounted for
Commodity indexes are informational services which reflect the price action in a designated commodity or basket of them
Total Return is the measure of all appreciation & interest as well as dividends & other distributions from an investment
The Symmetrical Triangle Bottom pattern forms when a currency pair's price fails to retest a high or a low and forms two trends