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Tip of the Day

Tip of the Day Make Your Own Meals

Make Your Own Meals - We all enjoy going out for dinner, but when it becomes a habit due to a busy schedule or kid's desires, it can become extremely...

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Permanent Capital


Permanent Capital - When shares owned by and individual are represented by voting rights relative to those shares the investors have the right to access a company’s assets. These are referred to as “common” shares. Preferred stock is similar to common stock except that a specific dividend is paid to the stockholders before any dividends are paid to common stock holders. When these two types of shares are combined and calculated with the retained earnings (earnings which were re-invested in the business or use to pay off debts) of a given company, the total value is considered permanent capital in that it is perceived as a measurable and tangible asset as opposed to speculation.  

 

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Definition of the Day Increasing returns to scale

Increasing returns to scale – An increased return to scale occurs when production is greater than the past due well-organized operational practices, and when the cost per element of assembly is reduced.  Increasing returns to scale is otherwise known as economies of scale or decreasing costs.  This term is best...

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