Cash flow Cash flow from investing activities is the cash that has been generated (or spent) on non-current assets that are intended to produce a profit in the future. Types of activities that this may include are capital expenditures, lending money, and the sale of investment securities. Why Cash Flow is So Important If incoming…
Effective Gross Income What is Effective Gross Income (EGI)? There’s big money-making potential with an investment rental property. However, determining how much you’ll actually make isn’t as simple as multiplying the monthly rent by 12. To understand your true cash flow, you’ll need to keep an eye on your effective gross income (EGI) about your net…
Futures market To understand fully what a futures market is, it’s important to understand the basics of futures contracts, the assets traded in these markets. Futures contracts are made in an attempt by producers and suppliers of commodities to avoid market volatility. These producers and suppliers negotiate contracts with an investor who agrees to take on both…
Who invented currency Why do people need currency? There are many theories about who invented currency, in part because money has many functions. It facilitates exchange as a measure of value and it brings diverse societies together by enabling gift-giving and reciprocity. Moreover, it perpetuates social hierarchies. Finally, it is a medium of state…