So you know how insurance companies sell policies to people and businesses, right? Well sometimes, those insurance companies decide they don’t want to deal with all those policies anymore. Maybe they want out of that line of business, or maybe they just need some cash quick. Trading policies from one insurer to another That’s where…

An assumed bond is a special kind of bond. One company issues it but another company has to pay it back. It’s like your friend borrowing money but promising you’ll pay it back if they can’t. The two companies have to be really close, like family. A parent company and its subsidiary count. So do…

An assumable mortgage is a special kind of home loan. With a regular mortgage, if you sell your house, the buyer has to get their own new loan and your loan gets paid off. But with an assumable mortgage, the buyer can take over your existing loan instead of getting a new one. They basically…

Asset value is a number that tells you what a company is worth. It’s the value of everything the company owns (called assets) minus everything it owes others (called liabilities). Assets are things the company has that are worth money. They could be stuff you can touch, like buildings, machines, or products to sell. Or…

An assignment clause is a part of a contract. It says whether the people in the contract can give their part of the deal to someone else. That’s called “assigning” the contract. Why It Matters See, when you sign a contract, it’s usually just between you and the other person. Like, let’s say you’re renting…

Asset value per share is how much each company share would be worth if you sold everything the company owns. It’s a way to determine the company’s worth, even if the stock price is different. Knowing the asset value per share can help you decide whether buying the stock is a good deal. Calculating Asset…

Asset valuation means figuring out what a company’s things are worth in terms of money. These “things” are called assets. Assets can be all sorts of stuff a company owns, like: Why Do We Need to Do Asset Valuation? We have to put a price tag on a company’s assets for a bunch of reasons:…

Asset turnover tells you how well a company uses its assets to make money. The company owns assets that have value, like machines, buildings, or furniture. The company uses these assets to make the products or services it sells. Asset turnover is a number that shows how many times in a year the company uses…

An asset swap spread is extra money paid when swapping a risky bond. It’s spent on top of the average floating rate. The floating rate is what banks charge each other for loans. This benchmark rate is called the interbank market rate. The extra money, called the spread, compensates for the bond’s riskiness. Riskier bonds…

Assets under management means money. It’s how much hard cash and investments a person or company takes care of. We’re talking about stocks, bonds, real estate, and other things that have value. When you add up the value, you get the total assets under management. It’s not just about the Benjamins. Sure, assets under management…