Invested capital
Investments in capital goods (such as new assets like factories, machinery, equipment, and transport required to produce other goods)
Operating Leverage
It represents the extent to which a company relies on fixed costs in its operations. The greater a company’s reliance on fixed costs, the higher its operating leverage is considered to be, and consequently, the greater its operational risks.
Sponsor
The person responsible for sponsoring the special purpose entity in accordance with the provisions of the rules governing special purpose entities.
National Debt
The total debt incurred by the government from loans used to finance successive budget deficits, particularly through the issuance of government-guaranteed securities.
Accounting Cycle
The steps followed in recording business transactions, which begin with recording in the journal, then posting to the ledger, then preparing the trial balance, and end with preparing the financial statements
Economic cycle
The path the economy typically follows, as economic growth fluctuates over time. The economic cycle is also referred to as the business cycle.
Engaging in a transaction
Commencing a transaction that places the investor in a short selling or margin buying position.
Fixed Income
An investment category comprising securities that pay a regular, predetermined income stream to the holder. Traditional examples include bonds; in Islamic finance, sukuk are the Sharia-compliant equivalent.
Current Liabilities
Financial obligations expected to be settled within one year or within the entity’s normal operating cycle, including accounts payable, short-term loans, accrued expenses, and the current portion of long-term debt.
Liabilities
Present obligations of an entity arising from past events, the settlement of which is expected to result in an outflow of economic resources. Liabilities are classified as current (due within 12 months) or non-current (due after 12 months).