Term of the Day

quorum

Fixed minimum number of eligible members or stockholders (shareholders) who must be present (physically or by proxy) at a meeting before any official businessmay be transacted or a decision taken therein becomes legally binding. Usually thearticles of association or bylaws of a firm specify this number, otherwise the number prescribed in corporate legislation (such as company law) is followed.
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Usage Example
Sure enough, within a few minutes, the chamber failed to muster quorum for a major vote on a forestry bill.
Term of the Day

current ratio

An indication of a company's ability to meet short-term debt obligations; the higher the ratio, the more liquid the company is. Current ratio is equal tocurrent assetsdivided by current liabilities. If the current assets of a companyare more than twice the current liabilities, then that company is generally considered to have good short-term financial strength. If current liabilitiesexceed...
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Usage Example
With a current ratio of 3.1:1.0 at the end of third-quarter 2012, Total System also appears well-equipped to meet most of its capital expenditure needs through internal funds, while also indicating disciplined expense management.

Notable Quotable
"I can't figure the stock market out. I think it's wacky. I have done well with a long term strategy and will continue being a long term investor. -Scott McNealy"
Today's Financial Tip

The Key Difference Between Equity Markets and Credit Markets click the link to read more.

The stock market can close down for a while and it really doesn't matter all that much. The primary function of the stock market is not to finance company operations, it is to price assets. Companies go public ...