Business is war.
Insurance agents are people whose job is to sell insurance policies to customers. There are two main types of insurance agents: captive agents and independent agents. Captive agents work for one insurance company A captive agent is an insurance salesperson who only represents one specific insurance company. They are employees of that company. Their job…
A captive agent’s a person who sells insurance for only one company. They’ve made a deal with that one insurance company. The deal is, “I’ll only sell your insurance, and nobody else’s. I won’t send any customers to other insurers.” Why Be a Captive Agent? The insurance company gives some good stuff to the agent…
An over-the-counter cap option is a special kind of contract. It gives the person who buys it the choice to buy a cap at a set price. This set price is called the strike price. Key features of over-the-counter cap options Over-the-counter cap options have some important features: How do over-the-counter cap options work? Let’s…
A capped floating rate note is a kind of investment. It is also called a “FRN” for short. FRNs are a type of bond. Bonds are when you loan money to a company or government. They agree to pay you back later and also pay you interest. The interest is called the “coupon”. How Floating…
Capitulation happens when the stock market tanks real bad and lots of investors freak out and sell their stocks like crazy. This mass panic selling makes prices drop even more. It’s like everyone is running for the exits at the same time. The word “capitulation” means surrender or giving up. When investors capitulate, they’ve lost…
Book value means how much a company is worth according to its financial records. You calculate it by looking at the company’s balance sheet. The book value equals the company’s total assets minus its total liabilities. Assets are things the company owns that have value. This includes cash, inventory, equipment, buildings, and land. Liabilities are…
Book value is the value a company says its FIXED ASSETS are worth on financial reports. Book value shows up on the BALANCE SHEET. People use book value to talk about a company’s ASSETS. It is not the same number as the number for which the company could sell those assets. What Book Value Is…
Capitalization rates, also called “cap rates,” are a way to determine the value of buildings like offices, shops, and apartment buildings that make money. It’s the amount of money you make in a year from rent, divided by how much the building is worth. Cap rates are shown as a percentage, like 5% or 7%….
Capitalization means different things depending on how you use the word. When talking about companies and money, capitalization usually refers to one of three things: Company’s capital structure The first meaning of capitalization is about how much money a company has and where that money comes from. Every company needs some amount of money to…
Capital surplus is extra money a company has. This money is not from the normal business of the company. There are a few ways a company can get capital surplus: Selling stock for more than par value Companies can sell shares of their stock. Each share has a “par value”. This is the lowest price…
