Recognising the Distinctions Between Short Selling and Naked Short Selling What Is Short Selling? Investors use short selling as a trading technique to profit from the expected drop in the price of a stock or other asset. In this technique, they borrow shares of an asset and sell them at the current market price. To secure […]
Differences Between Fixed Capital and Working Capital
Recognising the Distinction Between Working Capital and Fixed Capital Overview of Capital Concepts Capital is a key concept in business, describing the monetary resources that an organisation uses to finance its operations and enable expansion. A company’s overall financial stability and health are greatly influenced by its capital. Generally, capital falls into two main categories: […]
Differences Between CTC and Gross Salary
Understanding the Differences Between CTC and Gross Salary When discussing compensation and salary packages, two key terms often come up: CTC (cost to company) and gross salary. Both of these terms are commonly used in the context of employee salaries, especially when it comes to understanding the total earnings and the components of a salary […]
Differences between bankruptcy and insolvency
Understanding Financial Distress: Bankruptcy vs. Insolvency There are differences between bankruptcy and insolvency in the context of business and finance. A person or company that files for bankruptcy does so in order to protect themselves from creditors and to try to settle or reorganize their debts. Conversely, insolvency denotes a financial situation wherein an individual […]
Difference Between Fixed Cost and Variable Cost
Understanding Fixed and Variable Costs in Business Businesses suffer from two different categories of costs in their operations: fixed costs and variable costs. It is essential for efficient financial management to comprehend the distinctions between these costs. Irrespective of the volume of production or sales, fixed costs are expenditures that never change. Regardless of whether […]