What Is a Dow ETF vs Dow Jones ETF? An exchange-traded fund (ETF) is a type of security that involves a collection of securities, such as stocks. Often this collection of securities is designed to track an underlying index. However, they can be structured to track any number of industry […]
What Is Gross Profit Margin? Gross profit is the amount remaining after deducting the cost of goods sold (COGS) or direct costs from revenue. Gross profit margin is a measure of a company’s profitability. It is usually calculated as a percentage of revenue. The cost of goods sold is a […]
What Is the Net Income Formula? Net Income Formula: Net income (NI) equals revenues minus expenses, interest, and taxes. It shows how much is left after all expenses are paid. Net income (NI), is also called net earnings. It is calculated by taking total sales and subtracting the expenses necessary […]
What is an Ethical Dilemma? An ethical dilemma, ethical paradox, or a moral dilemma is a problem that requires a decision between two possible options. The problem is that neither option is absolutely acceptable from an ethical perspective. You may face many ethical and moral problems in your daily lives. […]
What is Infinite Banking? Infinite banking refers to a process where an individual becomes his or her own banker. The infinite banking concept is promoted by Nelson Nash. In his book, “Becoming Your Own Banker,” Nash explains the use of whole life insurance policies that distribute dividends. By owning such […]
What is the Working Capital Formula? The working capital formula is: Working capital = Current Assets – Current Liabilities The working capital formula tells you the short-term liquid assets available after short-term liabilities have been paid off. It measures a company’s short-term liquidity. It is important for financial analysis, financial […]