Archives: Terms

Definition of Bank Note A bank note is a type of negotiable instrument, issued by a bank or a financial institution, that is payable to the bearer on demand and used as a medium of exchange. Bank notes are commonly known as paper money and represent the bank’s promise to […]

Definition of Bank Loan A bank loan is a form of debt incurred by an individual or other entity. The borrower agrees to repay the borrowed amount along with interest over a specified payment schedule. Bank loans can serve a wide range of purposes, from financing a new business venture […]

Definition of Bank for International Settlements (BIS) The Bank for International Settlements (BIS) is an international financial institution known as the bank for central banks because its primary purpose is to serve central banks in their pursuit of monetary and financial stability, to foster international cooperation in those areas, and […]

Definition of Bank Deposit A bank deposit refers to money placed into a banking institution for safekeeping. Deposits can be made into various types of accounts, including checking, savings, or money market accounts, tailored to different needs such as everyday transactions or long-term savings. Bank deposits are a primary way […]

Definition of Bank Account A bank account is a financial account maintained by a banking institution for a customer. It records the financial transactions between the customer and the bank and holds money on behalf of the customer. These accounts serve as a secure place for individuals and businesses to […]

Definition of Balance Sheet A balance sheet is a financial statement that provides a snapshot of a company’s financial position at a specific point in time. It details the company’s assets, liabilities, and shareholders’ equity, thereby offering insights into its financial strength and capabilities. The balance sheet follows the fundamental […]

Definition of Average Cost Pricing Average cost pricing refers to a business strategy in which the price of a product is set based on the average cost of production per unit plus a markup. The average cost includes all fixed and variable costs associated with the production of a good, […]

Definition of Autocorrelation Function Autocorrelation Function, often abbreviated as ACF, is a statistical tool used to measure and analyze how a signal correlates with itself over different intervals of time. It provides insights into how a data set varies with itself at different lags. In simpler terms, it helps to […]

Definition of Auditor An auditor is a professional tasked with reviewing and verifying the accuracy of financial records and statements to ensure they are presented fairly in accordance with generally accepted accounting principles (GAAP) and other applicable standards. Auditors can be internal, working within an organization to review financial operations […]

Definition of Asset-Stripping Asset-stripping refers to the practice of buying a company in order to sell its assets for a profit, rather than seeking to invest in and grow the business. This strategy involves dismantling the company piece by piece, selling off assets such as real estate, intellectual property, and […]