Category: Glossary

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what does liquid mean in finance
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what does liquid mean in finance

Swimming in Assets: What Does ‘Liquid’ Really Mean in Finance? Imagine you have a treasure chest full of gold coins. Great, right? But what if you need to buy groceries today and can’t access those coins without breaking open the chest and risking attracting unwanted attention? Suddenly, your treasure doesn’t feel so valuable anymore. That’s...

what is haircut in finance
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what is haircut in finance

Snipping Your Way to Profits: Understanding Haircuts in Finance Ever heard the term “haircut” thrown around in financial circles and wondered what it meant? It’s not about getting a fresh trim at your local barbershop, though that might be nice too! In finance, a haircut refers to a reduction in the value of an asset...

what is pti in finance
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what is pti in finance

Decoding PTI: Your Financial Fitness Scorecard Ever heard of PTI, but weren’t quite sure what it meant? Don’t worry, you’re not alone! PTI stands for Payment-to-Income ratio, and it’s a key indicator that lenders use to assess your financial health when you’re applying for a loan. Think of it as a snapshot of your ability...

what does net mean in finance
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what does net mean in finance

Unmasking the Mystery of “Net” in Finance Ever stumbled across financial jargon like “net income” or “net worth” and felt a little lost? Don’t worry, you’re not alone! The word “net” often pops up in finance, and understanding what it means is key to grasping your own financial situation. Think of “net” as the leftovers...

what is ltm in finance
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what is ltm in finance

Unlocking the Mystery of LTM: Your Financial Snapshot Ever heard financial folks throw around acronyms like they’re going out of style? One you might have stumbled upon is LTM, which stands for Last Twelve Months. It’s a deceptively simple phrase, but it holds immense value in understanding a company’s financial health. Think of LTM as...