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Home Dictionary G Golden Handshake Golden Handshakes are pre-signed employment contracts that provide for severance pay if an employee is forced to leave their position early. Payment may be made in cash, stock options or any other method specified in the contract. Golden handshakes often contain non-compete clauses. Golden handshakes are often controversial and can cause chagrin in the general public. Sometimes lower-level employees get a smaller version of the golden handshake. Addition Rule for Probabilities
September 25, 2022 The addition rule for probabilities consists of two rules or formulas, one of which takes into account two mutually exclusive events, and the other two non-mutually exclusive events. Adjusted EBITDA
September 25, 2022 Adjusted EBITDA excludes non-recurring, non-recurring and non-recurring items that may distort EBITDA. Adjusted Present Value (APV)
September 25, 2022 APV is the net present value of a project or company if funded solely by equity plus the present value of the financial benefits. Alternative Depreciation System (ADS)
September 25, 2022 The Alternative Depreciation System (ADS) is a method that allows taxpayers to calculate the amount of depreciation the IRS allows them to take on certain business assets. Analysis of Variance (ANOVA)
September 25, 2022 Analysis of variance, or ANOVA, is a statistical technique that separates observed data of variance into different components for use in additional tests. Arithmetic Mean
September 25, 2022 The arithmetic mean is a simple average or the sum of a series of numbers divided by the number of this series of numbers. Asset Valuation
September 25, 2022 Asset valuation is the process of determining the fair market value of an asset. Autocorrelation
September 25, 2022 Autocorrelation is the degree of similarity between a given time series and its lagged version over successive time intervals. Autoregressive
September 25, 2022 Autoregressive models predict future values based on past values. Backtesting
September 25, 2022 Backtesting evaluates the viability of a trading strategy or pricing model by discovering how it would perform retrospectively using historical data. Base Pay
September 25, 2022 Base salary is the employee’s standard salary rate and does not include benefits, bonuses, allowances or other compensation. Basic Earnings Per Share (EPS)
September 25, 2022 Basic earnings per share (EPS) tells investors how much of a firm’s net income comes from each common share. Bell Curve
September 25, 2022 A bell curve is a graph depicting a normal distribution that has a bell-like shape. Bonus
September 25, 2022 A bonus is financial compensation in excess of the recipient’s normal payment expectations. Capacity Utilization Rate
September 25, 2022 The calculation of the capacity utilization rate accurately determines the degree to which the organization realizes its full production potential. Capitalized Interest
September 25, 2022 Capitalized interest is the cost of borrowing to obtain a long-term asset. Chief Technology Officer (CTO)
September 25, 2022 The chief technology officer (CTO) is the chief executive who is responsible for managing the research and development (R&D) of an organization as well as its technology needs. Comparable Company Analysis (CCA)
September 25, 2022 Benchmarking is the process of comparing companies based on similar metrics to determine their corporate value. Compounding
September 25, 2022 Compound interest is a process in which interest is credited to the existing principal as well as to the interest already paid. Conditional Probability
September 25, 2022 Conditional probability refers to the chances that some outcome will occur given that another event has occurred. Conditional Value at Risk (CVaR)
September 25, 2022 The notional value at risk is derived from the value at risk of the portfolio or investment. Confidence Interval
September 25, 2022 Confidence interval displays the probability that the parameter will be between a pair of values near the mean value. Cost of Revenue
September 25, 2022 Cost of sales is the total cost of producing and delivering a product or service to customers. Data Smoothing
September 25, 2022 Data smoothing uses an algorithm to remove noise from a data set, allowing you to highlight important patterns. Debt/EBITDA Ratio
September 25, 2022 The debt/EBITDA ratio is used by creditors, appraisers and investors to assess the liquidity and financial condition of a company.