Archives

USOE

USOE = U.S. Open End Mutual Fund

Venture Debt

Venture debt is a form of financing that, when utilized properly, can reduce dilution, extend a business’s runway, or accelerate its growth. All with limited cost to the company itself. In short, it offers a balance between flexibility and dilution for venture equity-backed companies that lack the assets or cash flow for traditional debt financing. Venture Debt is often structured as a term loan that amortizes over time and...

Volatility

The term volatility indicates how much and how quickly the value of an investment, market, or market sector changes. For example, because the stock prices of small, newer companies tend to rise and fall more sharply over short periods of time than stock of established, blue-chip companies, small caps are described as more volatile. The volatility of a stock relative to the overall market is known as its beta,...

Weighted

A mathematical process by which figures and/or components are adjusted to reflect importance by value or proportion. A weighted average, for example, takes into account the proportional relevance of each component, instead of measuring each individual component equally. For example, the Dow Jones Industrial Average (DJIA) is a price-weighted average that compares each security based on the stock’s price relative to the sum of all the stocks’ prices. The...

Weighted Average

An average in which each quantity to be averaged is assigned a weight. These weightings determine the relative importance of each quantity on the average. Weightings are the equivalent of having that many like items with the same value involved in the average. To demonstrate, let’s take the value of letter tiles in the popular game Scrabble. Value: 10 8 5 4 3 2 1 0 Occurrences: 2 2...

Wide Moat

Wide Moat is a type of sustainable competitive advantage that a business possesses that makes it difficult for rivals to wear down its market share and profit. The term is derived from the water filled moats that surrounded medieval castles. The wider the moat, the more difficult it would be for an invader to reach the castle. Businesses that possess at least one factor of Porter’s 5 forces model...

Yield Curve

A graph that illustrates the relationship between the yields of bonds with the same credit quality, but with varying maturities. A positive yield curve means short term interest rates are lower versus long term rates. A negative yield curve is just the opposite, whereas a flat yield curve shows little variance in the yields of short term bonds and long term bonds. (Source: ETF Guide)