As a small business owner, it’s crucial to understand your options in regards to receiving funds that are due. We’ll discuss what invoice factoring is, how it works, and why it’s an important concept to familiarize yourself with. Definition and Examples of Invoice Factoring Invoice factoring is a type of financing in which a business sells its unpaid invoices to a specialized factoring company and receives most of the money—typically 80% to 90%—upfront....

This form is six pages long, and the IRS requires you to use it to document your financial situation when you ask for an offer in compromise. The agency then uses the information to determine your “reasonable collection potential” on your tax debts. An offer in compromise is a way to settle your tax debt for less than the amount that you owe, which is agreeable to the IRS if you meet certain requirements....

Market timing can apply to any security. Stocks are the most common example, but someone can also use market timing to guide their bond, gold, or real estate investments. Anything that’s subject to market forces could be traded with market timing. How Does Market Timing Work? Market timing can be employed as an investing strategy in many ways. It all depends on what exactly an investor thinks will happen. For instance, if an investor sees a stock trading at $80 on Monday, and they feel it will drop down to $78 by the end of the week, then they may short the stock or buy a put option that expires Friday....

MV = Principal + (Principal x Interest Rate x Years to Maturity) For example, if a company issues a $10,000 bond that pays a 3% annual coupon and the bond matures in five years, the bondholder will receive $300 each year, or $1,500 over the life of the bond. The principal amount of $10,000 will be returned at the end of five years. Maturity Value = $10,000 + ($10,000 x 0....

Micro-investing allows people who might otherwise be shut out of the stock market to build an investment portfolio. High minimum investments can be a barrier for people who don’t have a lot of cash on hand to buy stocks, mutual funds, or other securities. A micro-investing app or platform, on the other hand, can make those kinds of investments accessible. Instead of investing thousands of dollars, you may be investing pennies instead....

For example, if you run a small retail store, you may keep a point-of-sale ledger, or similar software, that records daily transactions, inventory, and in-store balances. You’ll also have an external bank account that tracks deposits, purchases, and long-term balances. When you compare the two, you can look for any discrepancies in cash flow for a certain time frame. Publicly held companies must keep their accounts consistently reconciled or risk being penalized by independent auditors....

Investment professionals have varying views on whether smart beta accomplishes its objectives or, as many skeptics have claimed, is more appropriately labeled “smart marketing.” Learn the theory behind smart beta, how it works, and what its pros and cons are. Definition and Examples of Smart Beta Smart beta is an investment strategy that’s a hybrid of passive index investing and actively managed investing intended to outperform a benchmark index. Smart beta incorporates the better parts of passive index investing—low risk and less volatility—with the prospect of the better performance of actively managed funds but with lower expenses....

In 2020, the average household income was $97,026. The median household income—the number more frequently cited—was $67,521. Average Income in 2020 The median household income dropped to $67,521 in 2020, declining from $69,560 in 2019. The median household income has been steadily rising since 2010, so this was the most significant drop since then. The government uses the average family income to report the poverty threshold for statistical purposes. It also uses these figures to establish the poverty levels that determine eligibility for healthcare subsidies and welfare programs....

To calculate an ATR for today, you must first calculate a series of true ranges (TRs). The TR for today would be the greatest number resulting from the following: Today’s high minus yesterday’s closeToday’s low minus yesterday’s closeToday’s high minus today’s low Whether the number is positive or negative doesn’t matter. The highest absolute value is used in the calculation. Once you figure out the highest value, you’ll use that in your calculation....

When businesses are increasing production, they need more employees. As a result, more people are hired, there is more money to spend, and businesses make more profits and can focus on growth. The rate at which production and consumption change positively is called “economic expansion.” It continues until circumstances occur that cause production to slow. If business production slows, not as many employees are needed. As a result, consumers have less spending money, and businesses reduce spending on growth....

What if You Don’t Qualify for Medicaid? Don’t panic if you don’t meet the rules for Medicaid. You do have other options. Health care expert Shelby George, CEO of PERKY, a firm that helps employers educate employees about benefits, warns to be cautious about signing up for a plan without first doing your research. “There’s so much jargon, complexity, and misunderstanding in the health insurance world,” she says. “It’s become just like shopping for a car....

Congress determines Department of Education funding on an annual basis. In fiscal year 2022, the DOE had $235.74 billion in budgetary resources. The largest portion of these funds went to the Office of Federal Student Aid, which provides grants, work-study, and student loans to students attending college, career school, and graduate school. The second-largest portion went to the Office of Elementary and Secondary Education, which assists with preschool, elementary, and secondary education....

The Fair Housing Act prohibits lenders, landlords, sellers, and agents from discriminating against homebuyers and tenants on account of specific characteristics, including race, color, religion, sexual orientation, nationality, disability, or family status. For example, thanks to the Fair Housing Act, it is illegal to refuse to rent a home to someone because they practice a different religion. Individual states and local governments can add to the law, providing more protections, but they can’t take away from it....

Alternate name: Income capitalization For example, if you’re a real estate investor and you’re looking into a $500,000 residential property, you’ll need a methodology to determine if the home is worth the price not just in the current conditions, but for the duration of the time you want to own the home. What will the property’s monthly income look like after you subtract your mortgage payment (if applicable), property taxes, and any money you save each month for repairs?...

Learn more about what the Nasdaq Global Select Market Composite Index is, how it works, and how investors use it. Definition and Example of Nasdaq Global Select Market Composite Index The Nasdaq Global Select Market Composite is a stock market index that follows Nasdaq stocks listed on Nasdaq Stock Market’s Global Select tier, weighted by their market cap. The Global Select tier is Nasdaq’s top tier, and its stock must meet stricter liquidity and financial requirements....

How the Russell 3000 Index Works Introduced in 1984, the Russell 3000 Index tracks the current and historical market performance of large-, mid-, small-, and micro-cap companies. Since it tracks U.S. companies, the index can be used as a performance benchmark for the overall domestic economy. The Russell 3000 Index is a subset of the larger Russell 3000E index—an index of the largest 4,000 U.S. companies. Within the Russell 3000 Index, there are also subsets, including the Russell 2000 and Russell 1000:...

Because these programs are either experimental or being developed, there are no criteria for who exactly receives the income. Some proponents believe that all citizens should get it regardless of what they make, while others believe that only those below a specific income should receive it. Some believe that a government-sponsored income is not necessary or fair to all people. Acronym: UBI How Universal Basic Income Works The core idea behind a universal basic income is to use government tax revenues to create programs that pay all people within that government’s jurisdiction....

Definition and Example of Wage Garnishment Wage garnishment is a legal or equitable procedure where a portion of a person’s earnings are withheld from them and paid to the party to which they are owed. In many cases, the garnishment is ordered by the court. However, it can also be initiated by the IRS, state tax collection agencies, or other federal agencies. For example, say Michael is required to pay child support to Maria but has not paid the amount owed in full....

Disclosure Laws for Home Equity Loans There are home equity loan regulations that protect consumers from predatory lenders who may try to discourage the borrower from reading or understanding all of the terms, conditions, or fees in their contract. Specifically, disclosure laws say that lenders must be upfront about details like the loan’s APR, fees, renewal terms, and more. All such information must be included either in the application itself, or as a separate form, and must be “clear and conspicuous....

Though citation and ticket have the same meaning, there are times where you’re more likely to hear one of them over the other. Let’s look a little more closely at each word, and then examine how a traffic infraction on your driving record can increase your car insurance. Is a Citation a Ticket? Yes, a citation is the same thing as a ticket. However, there are certain situations where one word is generally used instead of the other....