Kong Sinra

What is the Rule 407 letter? – Definition, Explanation, Example, and More

Definition Rule 407 was a law that required a letter which requires an employee working in Financial Industry regulatory authority or FINRA, which allowed the employee to hold investments in equities or bonds in personal accounts. The employees must disclose personal bank account information about the account in which they are holding the security. It …

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What is Activity-Based Costing and How Does It Work (Explained)

What is Activity-Based Costing? Activity-based costing is a process for computing production costs. It distributes overhead costs into different production-related activities. ABC is a procedure that applies overhead allocation to the products that utilize those activities, allowing it to be more exact than traditional allocation. ABC works effectively in complex processes where there isn’t a single …

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Income Statement Under Absorption Costing? (All You Need to Know)

What Is Absorption Costing? Absorption costing is a tool used in management accounting to capture entire expenses connected to manufacturing a certain product. For external reporting, generally recognized accounting principles (GAAP) demand absorption costing. Moreover, it is a costing process for valuing inventory. It’s also known as complete costing because it accounts for all direct …

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How Soon After Ex-Dividend Date Can I Sell? All You Need to Know

Overview When you own dividend stocks, it’s important to understand the dividend dates. Dividend announcements and changes can impact stock prices as well. Many investors look to make quick profits with changes in stock prices around the ex-dividend date through dividend capture. Investors of mutual funds and ETFs receive periodic payments as well. Hence, a …

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What Are the 4 Types of Dividend Policy? (Explained)

A company’s dividend policy suggests the payout frequency, amount, and timings of the dividends paid out to its shareholders. Income-oriented investors are particularly keen on knowing a company’s dividend policy. There are four types of dividend policies. Each type of policy offers its pros and cons to shareholders and the company. Proponents of dividend irrelevancy …

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Share Buyback – Advantages, Disadvantages, and How Does It Work

Share buyback The share buyback is when companies buy back their own shares from the shareholders. There are multiple logics and methods that why the companies opt for buying back. However, shareholder’s approval is required for the successful execution of the transaction. The methods and reasons for the implementation of the buyback program have been …

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