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Tip of the Day

Tip of the Day Take A Deep Breath

Take A Deep Breath - After reading this if all you have done is follow five to seven of the tips offered you are now saving more money than you...

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Liabilities

Definition: A financial obligation that a business is required to pay.  These include bonds, notes, accounts payable, etc.

TeenAnalyst Advice: When a company owes somebody, it's called a liability.  These liabilities are recorded on the balance sheet.  Net worth is figured as assets - liabilities.  Therefore, liabilities take away from net worth.

Liabilities aren't bad, though.  Liabilities mean that the company could be growing.  And if a company takes out an 8% loan to create a project that will earn them a 15% return on their investment, it's considered a good liability.

 

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Daily Definition

Definition of the Day Claim Dilution

Claim Dilution - a claim dilution is a decrease in the likelihood that one or more parties in a contract will be repaid in full.  A dilution is a change on earnings per share of a stock, and a claim dilution may occur if the following happens. A company adds...

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