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what is the ipo process
the ipo process essentially consists of two parts the first is the pre marketing phase of the offering while the second is the initial public offering itself when a company is interested in an ipo it will advertise to underwriters by soliciting private bids or it can also make a public statement to generate interest th...
when a company decides to raise money via an ipo it is only after careful consideration and analysis that this particular exit strategy will maximize the returns of early investors and raise the most capital for the business therefore when the ipo decision is reached the prospects for future growth are likely to be hig...
initially the price of the ipo is usually set by the underwriters through their pre marketing process at its core the ipo price is based on the valuation of the company using fundamental techniques the most common technique used is discounted cash flow which is the net present value of the company s expected future cas...
what is the purpose of an initial public offering
an ipo is essentially a fundraising method used by large companies in which the company sells its shares to the public for the first time following an ipo the company s shares are traded on a stock exchange some of the main motivations for undertaking an ipo include raising capital from the sale of the shares providing...
is an ipo a good investment
ipos tend to garner a lot of media attention some of which is deliberately cultivated by the company going public generally speaking ipos are popular among investors because they tend to produce volatile price movements on the day of the ipo and shortly thereafter this can occasionally produce large gains although it c...
what is inorganic growth
inorganic growth arises from mergers or takeovers rather than an increase in the company s own business activity firms that choose to grow inorganically can gain access to new markets through successful mergers and acquisitions inorganic growth is considered a faster way for a company to grow compared to organic growth...
how is inorganic growth achieved
firms can choose to grow inorganically in several ways including engaging in mergers and acquisitions and in the case of retail or branch organizations opening new stores or branches mergers are challenging from an integration perspective acquisitions can be accretive to earnings but the implementation of the technolog...
which is best inorganic or organic growth inorganic growth such as a boost from acquisitions can provide a short term boost however steady and slow organic growth can be viewed as superior as it shows the company has the ability to make money regardless of the economic backdrop plus there s the downside of potentially ...
one of the most important measures of performance for fundamental analysts is growth particularly in sales sales growth can be the result of promotional efforts new product lines and improved customer service which are internal or organic measures growth in organic sales is often described in terms of comparable sales ...
what is an example of inorganic growth
consider that company a is looking to leverage an inorganic growth strategy company a acquires a software startup that provides a new technology that its competitors don t yet provide in doing so company a now offers its customers new technologies and gains access to new markets that were established by the acquired co...
is m a inorganic growth
yes mergers acquisitions are a form of inorganic growth as the company takes external measures to grow the company by combining with another firm
what is balanced growth
in short balanced growth involves using organic growth to build the company as well as inorganic growth in acquiring other companies to help boost growth acquisitions can lead to faster sales growth and quicker cashflow but may be unpredictable organic growth is advantageous because it is familiar and inherent to the c...
do companies with more organic growth outperform those with higher inorganic growth
according to a study from mckinsey s p 500 companies that had higher organic growth tended to outperform companies with the least organic growth when assessed at comparable growth levels
what are common forms of inorganic growth
based on a survey of 1 300 ceos by pwc 40 said they were planning on targeting a joint venture to boost revenues 37 were considering a merger or acquisition 32 were planning on working with startups and 14 were planning on selling a business
what is input output analysis
input output analysis i o is a form of macroeconomic analysis based on the interdependencies between different economic sectors or industries this method is commonly used for estimating the impacts of positive or negative economic shocks and analyzing the ripple effects throughout an economy i o economic analysis was o...
what is insead
one of the world s top graduate business schools insead has campuses in france singapore san francisco and the middle east abu dhabi founded in 1957 insead is an acronym for institut europ en d administration des affaires today insead is recognized around the world as one of the top business schools on the planet the s...
is insead better than harvard
depending on the publication insead can be considered a better mba degree than harvard according to the financial times in 2023 insead ranked number two for best mba programs while harvard ranked number four 2
how much does insead cost
the cost for insead for starting the program in aug 2023 is 97 000 for starting the program in jan 2024 it is 98 500 this does not include living expenses living expenses in france add another 25 000 20
is insead an ivy league school
no insead is not an ivy league school ivy league schools are a certain grouping of specific schools in the u s schools outside of the u s such as insead are not part of the ivy league the bottom lineinsead is a top business graduate school with its central campus in france along with locations in singapore north americ...
what is an inside day
an inside day is a two day price pattern that occurs when a second day has a range that is completely inside the first day s price range the high of the second day is lower than the first and the low of the second is higher than the first inside days show a contraction in volatility and are often a continuation pattern...
when attempting to trade the pattern the best results tend to come with trading it as a continuation pattern for example if looking to buy a stock it should be a bull market the stock should be trending higher when it forms the inside day and then the price should exit the pattern to the upside
in the example above the trader could buy when the price moves above the top of the pattern which is the high of the first candle of the two bar pattern the inside day pattern does not have a profit target attached to it traders can utilize other methods to collect profits such as a trailing stop loss risk reward ratio...
what is indemnity
indemnity is a comprehensive form of insurance compensation for damage or loss when the term indemnity is used in the legal sense it may also refer to an exemption from liability for damage indemnity is a contractual agreement between two parties in this arrangement one party agrees to pay for potential losses or damag...
how indemnity works
an indemnity clause is standard in the majority of insurance agreements however exactly what is covered and to what extent depends on the specific agreement any indemnity agreement has what is called a period of indemnity or a specific length of time for which the payment is valid similarly many contracts include a let...
what is indemnity in insurance
indemnity is a comprehensive form of insurance compensation for damage or loss it amounts to a contractual agreement between two parties in which one party agrees to pay for potential losses or damage caused by another party
what is the purpose of indemnity
indemnification or indemnity designates one party the indemnifying party as being required to compensate the other party the indemnified party for certain costs and expenses typically stemming from third party damage claims
what is the rule of indemnity in insurance
with indemnity insurance one party commits to compensate another for prospective loss or damage in insurance policies in exchange for premiums paid by the insured to the insurer the insurer offers to compensate the insured for any potential damage or losses the bottom lineindemnity is a type of insurance compensation p...
what are inside sales
inside sales refers to the sale of products or services by personnel who reach customers through phone email or the internet other ways to define inside sales are remote sales or virtual sales it is called inside because these sales reps remain indoors often at a call center or company office inside sales may or may no...
what is inside sales vs outside sales
inside sales relies on an indoors salesforce to market and sell the company s products or services online or over the phone outside sales uses in person techniques such as meeting clients face to face knocking on doors or setting up physical booths at conventions or conferences
is cold calling used with inside sales
cold calling is when a salesman or marketers solicits a potential customer who has had no prior interaction with the company or salesperson consumers tend to dislike cold calling finding it impersonal and potentially disruptive as a result the success rate for cold calling is very low and federal regulations now exist ...
is inside sales the same as telemarketing
telemarketing or telesales involves selling over the phone or by email often using cold calls and is one aspect of inside sales on whole inside sales encompasses a broader range of sales marketing tools and techniques including social media marketing mobile marketing search engine optimization seo and customer relation...
what is insider information
insider information is a fact about a public company s plans or finances that has not yet been revealed to shareholders and that could give an unfair advantage to its possessors if acted upon buying or selling stock based on insider information can be a criminal offense insider information is usually available to execu...
what is insider trading
insider trading involves trading in a public company s stock or other securities by someone with non public material information about the company insider transactions are legal if the insider makes a trade and reports it to the securities and exchange commission but insider trading is illegal when the material informa...
has insider trading a negative connotation
the term insider trading generally has a negative connotation based on the perception that it is unfair to the average investor essentially insider trading involves trading in a public company s stock by someone with non public material information about that stock insider trading is illegal but if an insider trades th...
when is insider trading illegal
insider trading is deemed illegal when the material information is still non public and comes with harsh consequences including potential fines and jail time material non public information is defined as any information that could substantially impact that company s stock price
when is insider trading legal
legal insider transactions happen in the stock market all the time the question of legality stems from the sec s attempt to maintain a fair marketplace it is legal for company insiders to trade company stock as long as they report these trades to the sec on time the bottom lineinsider trading is when non published info...
what is insolvency
insolvency is when an individual or company can no longer meet their financial obligations to lenders as debts become due before an insolvent company or person gets involved in insolvency proceedings they may be involved in informal arrangements with creditors such as setting up alternative payment arrangements insolve...
how insolvency works
insolvency is a state of financial distress in which a business or person is unable to pay their bills 1insolvency can lead to insolvency proceedings in which legal action will be taken against the insolvent person or entity and assets may be liquidated to pay off outstanding debts business owners may contact creditors...
what is the difference between debt restructuring and debt consolidation
debt restructuring is when you take steps to avoid defaulting on debt such as negotiating a lower interest rate or new terms that make payments more affordable debt consolidation is when you combine multiple loans into one new loan often to achieve better terms
is insolvency the same thing as bankruptcy
insolvency is not the same as bankruptcy although a company that has become insolvent may file for bankruptcy insolvency is the state of not being able to pay your obligations while bankruptcy is a legal process to discharge your debts 4the bottom lineinsolvency is a state where a debtor cannot pay their debts and it c...
what is an installment debt
an installment debt is a loan that is repaid by the borrower in regular installments an installment debt is generally repaid in equal monthly payments that include interest and a portion of the principal this type of loan is an amortized loan that requires a standard amortization schedule to be created by the lender de...
what is the institute for supply management ism
the term institute for supply management ism refers to a nonprofit supply management association established in 1915 it is the largest organization of its kind it provides certification development education and research for individuals and corporations in the supply management and purchasing professions the goal of th...
what is the institute of management accountants
the institute of management accountants ima is one of the top associations for financial professionals it offers the prestigious certified management accountant cma designation the ima s mission is to promote education and development in management accounting and finance advocate for the highest ethics and best busines...
what is the institutional brokers estimate system ibes
the institutional brokers estimate system ibes is a database used by brokers and active investors to access the estimates made by stock analysts regarding the future earnings of publicly traded american companies ibes is often written as i b e s understanding the ibesibes serves as a central location for all current an...
how ibes is used
ibes aims to be a concise centralized system to aid in decision making about securities it allows for access to a broader consensus estimate rather than relying on the narrow judgments that can be made from day to day as analysts publish their reports ibes can be used in a variety of ways forecast models for earnings p...
what does ibes stand for
in the financial markets ibes or i b e s stands for the institutional brokers estimate system a financial database containing equity analysts estimates and reports on most publicly traded companies who owns ibes ibes is owned by the financial data and media company thomson reuters which it acquired in 2000 when thomson...
what kind of data is found in an ibes report
in addition to analysts recommendations ibes reports contain a wealth of company financial data including earnings eps forecasts company guidance and kpis key performance indicators
how can i access ibes data
ibes is available through various subscription services offered by thomson reuters including its refinitiv thomson one and eikon platforms 6the bottom lineibes or the institutional brokers estimate system aggregates earnings estimates from sell side analysts providing comprehensive coverage across various industries it...
what is an institutional investor
an institutional investor is a company or organization that invests money on behalf of other people mutual funds pensions and insurance companies are examples institutional investors often buy and sell substantial blocks of stocks bonds or other securities and for that reason are considered to be the whales on wall str...
what is the world s largest asset manager
the largest private asset manager is blackrock which holds about 10 trillion in assets under management as of 2022 note that most of these assets are held in the name of blackrock s clients they are not owned by blackrock itself 4
what qualifies as an institutional investor
an institutional investor is an entity that makes investments on behalf of someone else they gather insight and analytical data from institutional shareholder services iss providers that help them make informed shareholder decisions institutional investor examples include pension funds mutual funds insurance companies ...
how do institutional investors make money
institutional investors make money by charging fees and commissions to their members or clients for example a hedge fund may charge a certain percentage of a client s investment gains or total assets there may also be flat fees for holding an account or making trades or withdrawals
what is an accredited investor
an accredited investor usually described as a sophisticated investor they are someone with enough experience or wealth to make certain risky investments that are not available or permitted to the general public in the united states an accredited investor must have a net worth of over 1 million excluding the value of th...
what is an instrument
an instrument is a means by which something of value is transferred held or accomplished in the field of finance an instrument is a tradable asset or a negotiable item such as a security commodity derivative or index or any item that underlies a derivative in separate contexts an instrument can alternatively refer to a...
what is insurable interest
insurable interest is a type of investment that protects anything subject to a financial loss a person or entity has an insurable interest in an item event or action when the damage or loss of the object would cause a financial loss or other hardships to have an insurable interest a person or entity would take out an i...
is insurable interest required for insurance policies
yes insurable interest is essentially proof that an individual or entity would experience financial or other hardships as the result of damage to or loss of an item or person this is evaluated during the underwriting process to ensure this direct link such proof of insurable interest is required for all insurance polic...
what is moral hazard
a moral hazard is when someone with an insurance policy is incentivized to cause loss or damage in order to collect on the insurance for instance somebody who is terminally ill may seek a life insurance policy knowing it will payout when they pass away soon after acquiring it having insurable interest helps minimize mo...
why can t i take out a life insurance policy on just anybody
unless you have insurable interest you cannot take out a life insurance policy on that individual if so you could essentially place bets on or else profit from the death of otherwise random individuals family members and dependents are often justifiable as having insurable interest so are business partners borrowers an...
what is insurance
insurance is a contract represented by a policy in which a policyholder receives financial protection or reimbursement against losses from an insurance company the company pools clients risks to make payments more affordable for the insured most people have some insurance for their car their house their healthcare or t...
how insurance works
many insurance policy types are available and virtually any individual or business can find an insurance company willing to insure them for a price common personal insurance policy types are auto health homeowners and life insurance most individuals in the united states have at least one of these types of insurance and...
what is insurance
insurance is a way to manage your financial risks when you buy insurance you purchase protection against unexpected financial losses the insurance company pays you or someone you choose if something bad occurs if you have no insurance and an accident happens you may be responsible for all related costs 1
why is insurance important
insurance helps protect you your family and your assets an insurer will help you cover the costs of unexpected and routine medical bills or hospitalization accident damage to your car or injury of others and home damage or theft of your belongings an insurance policy can even provide your survivors with a lump sum cash...
is insurance an asset
depending on the type of life insurance policy and how it is used permanent or variable life insurance could be considered a financial asset because it can build cash value or be converted into cash simply put most permanent life insurance policies have the ability to build cash value over time 11the bottom lineinsuran...
what is an insurance claim
an insurance claim is a formal request by a policyholder to an insurance company for coverage or compensation for a covered loss or policy event the insurance company validates the claim or denies the claim if it is approved the insurance company will issue payment to the insured or an approved interested party on beha...
how an insurance claim works
a paid insurance claim serves to indemnify a policyholder against financial loss an individual or group pays premiums as consideration for the completion of an insurance contract between the insured party and an insurance carrier the most common insurance claims involve costs for medical goods and services physical dam...
when it comes to insurance rate increases not all claims are created equal dog bites slip and fall personal injury claims water damage and mold can all act as signals of future liability for an insurer these items tend to have a negative impact on your rates and on your insurer s willingness to continue providing cover...
types of insurance claimscosts for surgical procedures or inpatient hospital stays remain prohibitively expensive individual or group health policies indemnify patients against financial burdens that may otherwise cause crippling financial damage health insurance claims filed with carriers by providers on behalf of pol...
how do i initiate an insurance claim
if you hold an insurance policy and have experienced damages covered by it you can initiate a claim by contacting your insurer this can be done by phone and increasingly online once the claim has been started the insurer will collect relevant information from you and may ask for evidence such as photos or supporting do...
why does filing a claim increase insurance premiums
sometimes filing a claim can result in higher insurance premiums going forward although this is not always the case as some insurers will forgive the first accident for example rate hikes following a claim are mainly due because the insurer will see you as a greater risk than before and adjust the cost upwards accordin...
should i file an insurance claim if the damage is less than my deductible
if the damage you experience is less than your deductible it may not make sense to file a claim with your insurance company for instance if you have 200 in estimated damage but a 1 000 deductible it wouldn t make sense if however you feel that the other party is entirely at fault and want their insurance to pay for you...
what is insurance coverage
insurance coverage is the amount of risk or liability that is covered for an individual or entity by way of insurance services insurance coverage such as auto insurance life insurance or more exotic forms such as hole in one insurance is issued by an insurer in the event of unforeseen occurrences skynesher getty images...
what is an insurance premium
an insurance premium is the amount of money an individual or business pays for an insurance policy insurance premiums are paid for policies that cover healthcare auto home and life insurance once earned the premium is income for the insurance company it also represents a liability as the insurer must provide coverage f...
when you sign up for an insurance policy your insurer will charge you a premium this is the amount you pay for the policy policyholders may choose from several options for paying their insurance premiums some insurers allow the policyholder to pay the insurance premium in installments monthly or semi annually while oth...
the price of the premium depends on a variety of factors including there may be additional charges payable to the insurer on top of the premium including taxes or services fees auto insurancefor example in an auto insurance policy the likelihood of a claim being made against a teenage driver living in an urban area may...
how premiums are calculated
insurance premiums may increase after the policy period ends the insurer may increase the premium for claims made during the previous period if the risk associated with offering a particular type of insurance increases or if the cost of providing coverage increases insurance companies generally employ actuaries to dete...
what do insurers do with the premiums
insurers use the premiums paid to them by their customers and policyholders to cover liabilities associated with the policies they underwrite some insurers invest in the premium to generate higher returns by doing so the companies can offset some costs of providing insurance coverage and help an insurer keep its prices...
what are the key factors affecting insurance premiums
insurance premiums depend on a variety of factors including the type of coverage being purchased by the policyholder the age of the policyholder where the policyholder lives the claim history of the policyholder and moral hazard and adverse selection insurance premiums may increase after the policy period ends or if th...
what is an actuary
an actuary assesses and manages the risks of financial investments insurance policies and other potentially risky ventures actuaries assess particular situations financial risks primarily using probability economic theory and computer science most actuaries work at insurance companies where their risk management capabi...
what is an insurance underwriter
insurance underwriters are professionals who evaluate and analyze the risks involved in insuring people and assets insurance underwriters establish pricing for accepted insurable risks the term underwriting means receiving remuneration for the willingness to pay a potential risk underwriters use specialized software an...
what is insurtech
insurtech refers to the use of technology innovations designed to find cost savings and efficiency from the current insurance industry model insurtech is a combination of the words insurance and technology inspired by the term fintech understanding insurtechinsurtech is premised on the belief that the insurance industr...
what insurance areas does insurtech solve
the claims management process traditionally resulted in manually reviewing each claim deciding what compensation to award then remitting that compensation now insurtech companies aim to build processes that automate certain processes and detect fraud larger companies can leverage technology to gather and aggregate spec...
when leveraging blockchain technology smart contracts can be triggered to execute when specific criteria is met this eliminates the human element for needing to handle the contract and this allows an unbiased neutral party i e technology to evaluate the criteria of a contract and decide the appropriate course of action...
as mentioned earlier big data can be used to gather analyze and summarize information this includes analyzing a customer s historical activity or assessing a broad range of claim types based on the information gathered insurers may be able to detect fraud protect against unsuitable risk or better understand where they ...
what does insurtech mean
insurtech is a combination of insurance and technology it is an emerging industry that utilizes technology and modern innovations to change how traditional insurance is performed
is insurtech a component of fintech
insurtech and fintech are often considered two different industries both rely on modern solutions to change how traditional services are performed however there are many differences between the financial sector and insurance sector therefore insurtech companies are not likely to offer financial services in addition to ...
how does insurtech make money
insurtech relies on minimal overhead and operational efficient to make money though it still earns revenue from clients the goal is to have minimal costs by eliminating a physical office or personnel to perform tasks that have been eliminated through chatbots or automation due to lower costs insurtech companies are oft...
is insurtech better than traditional insurance
some customers may prefer face to face interactions with a dedicated insurance agent they ve gotten to know for years other customers may prefer to self select their own policy that can be canceled using an app insurtech simply offers a different method of delivering insurance coverage that traditional insurance may no...
what is an intangible asset
intangible assets differ from tangible assets which have physical forms such as buildings or office furniture for businesses an intangible asset includes patents goodwill and intellectual property investopedia jessica olahtypes of intangible assetsintangible assets are generally considered long term and their value can...
how to value intangible assets
a business like coca cola ko can contribute much of its success to brand recognition although brand recognition is not a physical asset that can be seen or touched it can have a meaningful impact on generating sales intangible assets have no recorded book value because of this when a company is purchased the purchase p...
why is it difficult to value intangible assets
it is often difficult to determine an intangible asset s future benefits and lifespan or the costs associated with maintaining it the useful life of an intangible asset can be either identifiable or non identifiable most intangible assets are considered long term assets with a useful life of more than one year 2
what is brand equity
brand equity is an intangible asset and refers to a value premium that a company generates from a recognized product instead of its generic equivalent companies create brand equity for their products through mass marketing campaigns
how are intangible assets disclosed on a company s balance sheet
internally developed intangible assets do not appear on a company s balance sheet when intangible assets have an identifiable value and lifespan they appear on a company s balance sheet as long term assets valued according to their price and amortization schedules the bottom linebusinesses can have both tangible and in...
what is intangible personal property
the term intangible personal property refers to an item of value that cannot be touched or physically held these assets can be held by both individuals and corporations intangible personal property can be anything that has image social and reputational capital along with digital copyrights patents and investments intan...
what types of assets are considered intangible personal property
intangible personal property is anything with no obvious and assigned value and can t be physically held examples include copyrights patents intellectual property investments digital assets along with anything that has image social or reputational capital
what s the difference between intangible and tangible personal property
intangible personal property is any type of asset that has value but isn t physical in nature examples of intangible personal property are copyrights patents intellectual property and investments assets that can be represented with social or reputational capital also qualify as intangible personal property tangible per...
is intangible property taxable
intangible personal property has no physical shape and as such has no assigned value this makes it hard to account for and properly evaluate them but there are certain forms of intangible personal property that are subject to capital gains taxes this happens when they are sold at a higher price than when they were purc...
what is intellectual capital
intellectual capital is the value of a company s employee knowledge skills business training or any proprietary information that may provide the company with a competitive advantage intellectual capital is considered an asset and can broadly be defined as the collection of all informational resources a company has at i...
what is an intentionally defective grantor trust
an intentionally defective grantor idgt trust is an estate planning tool used to freeze certain assets of an individual for estate tax purposes but not for income tax purposes the intentionally defective trust is created as a grantor trust with a loophole that allows the them to receive income from certain trust assets...
what makes a grantor trust intentionally defective
intentionally defective refers to the fact that the grantor no longer owns the assets in the trust they are removed from the estate but still pays income taxes on any income earned from the assets in the trust
how are intentionally defective grantor trusts taxed
idgts are not taxed when assets are sold into them or if they appreciate because there is no recognition of capital gains however the grantor pays income taxes if there is income from the idgt
what happens to an intentionally defective grantor trust when the grantor dies
if there was an installment note the principal and any accumulated interest are included in the grantor s taxable estate however if the assets were sold into the idgt they are not included in the taxable estate and can be passed on to the beneficiaries
what is the inter american development bank idb
the inter american development bank idb is a cooperative development bank founded in 1959 to accelerate the economic and social development of its latin american and caribbean member countries it is owned by a total of 48 member countries including the u s and some european nations 1 the bank provides financing in the ...
when he was president of the iab luis alberto moreno said the focus of the bank included tackling inequality and improving public services for the countries it serves change is needed said moreno pointing to the various protests in the streets within the region during 2019 moreno pointed out the lack of growth in latin...
in september 2020 mauricio j claver carone was elected president of the inter american development bank idb during an electronic meeting of the bank s board of governors claver carone took office on october 1 2020 for a five year term previously claver carone was deputy assistant to the former u s president donald trum...
what is interactive media
interactive media is a method of communication in which a program s outputs depend on the user s inputs in turn the user s inputs affect the program s outputs it refers to the ways in which people process and share information or how they communicate with each other interactive media allows people to connect with other...
what is the primary advantage of using interactive media
interactive media allows the user and a business to interact and communicate much more seamlessly as a consumer you can communicate with the business and get your questions answered as a business owner you can more easily identify and address your clients or customers needs and concerns
what are some common examples of interactive media
you most likely engage in interactive media repeatedly all day you ve done so when you check in to your instagram x or facebook account or when you tap into your uber phone app to arrange for a ride home maybe you take care of some personal finance issues on your smartphone as well all these are examples of interactive...