What Is First Notice Day? A First Notice Day (FND) is the day after which an investor who has purchased a futures contract may be required to take physical delivery of the contract’s underlying commodity. The first notice day can vary by contract and will also depends on exchange rules. If the first business day
What Is Financial Modeling? Financial modeling is the process of creating a summary of a company’s expenses and earnings in the form of a spreadsheet that can be used to calculate the impact of a future event or decision. A financial model has many uses for company executives. Financial analysts most often use it to
What Is Financial Performance? Financial performance is a subjective measure of how well a firm can use assets from its primary mode of business and generate revenues. The term is also used as a general measure of a firm’s overall financial health over a given period. Analysts and investors use financial performance to compare similar
What Is a Financial Planner? A financial planner works with clients to help them manage their money and reach their long-term financial goals. A financial planner needs a thorough knowledge of personal finance, taxes, budgeting, and investing. They may specialize in tax planning, asset allocation, risk management, retirement planning, or estate planning, Many draw their
What Is the Financial Planning Association? The Financial Planning Association is a professional organization for financial planners. Based in Denver, Colorado, the Financial Planning Organization promotes education and professional ethics in the field while also helping potential clients locate qualified financial planners in their area. Key Takeaways The Financial Planning Association is a US-based professional
What Is a Financial Power Of Attorney? A financial power of attorney (POA) is a legal document that grants a trusted agent the authority to act on behalf of the principal-agent in financial matters. The former is also referred to as the attorney-in-fact while the principal-agent is the person who grants the authority. This kind
What Is a Financial Quota Share? A financial quota share is a reinsurance treaty in which the ceding company is responsible for a portion of the loss associated with a claim. Key Takeaways A financial quota share is a reinsurance treaty in which the ceding company is responsible for a portion of the loss associated with a
What Is Financial Repression? Financial repression is a term that describes measures by which governments channel funds from the private sector to themselves as a form of debt reduction. The overall policy actions result in the government being able to borrow at extremely low interest rates, obtaining low-cost funding for government expenditures. This action also
What Is Financial Responsibility Law? Financial responsibility law, commonly associated with vehicles, are statutes that require an individual or business to prove that they can pay for damages resulting from an accident. Financial responsibility law does not specifically require the party to have insurance coverage. Instead, the law requires that they be able to demonstrate
What Is Financial Risk? Financial risk is the possibility of losing money on an investment or business venture. Some more common and distinct financial risks include credit risk, liquidity risk, and operational risk. Financial risk is a type of danger that can result in the loss of capital to interested parties. For governments, this can
