Forward markets trade contracts for commodities, currencies, and other underlying assets while stock markets trade shares of publicly listed companies. Pricing in the forward market depends on factors like supply and demand, cost of carry, and convenience yield, while stock prices can be influenced by earnings, growth potential dividends and investor sentiment. The spot transaction […]…
The restaurant and the farmer agree to the delivery of 100 cases of iceberg lettuce on July 1st at a forward rate of $55 per case. Spot markets trade commodities or other assets for immediate (or very near-term) delivery. The word spot refers to the trade and receipt of the asset being made on the […]…
It does not matter if the trailer could be sold for $80,000 or $65,000 at this point; on the balance sheet, it is worth $73,000. This formula is best for production-focused businesses with asset output that fluctuates due to demand. This formula is best for companies with assets that lose greater value in the early […]…
The straight-line depreciation method differs from other methods because it assumes an asset will lose the same amount of value each year. With these numbers on hand, you’ll be able to use the straight-line depreciation formula to determine the amount of depreciation for an asset on an annual or [review] xero monthly basis. At this […]…