What Is the Retail Inventory Method? The retail inventory method is an accounting method used to estimate the value of a store’s merchandise. The retail method provides the ending inventory balance for a store by measuring the cost of inventory relative to the price of the merchandise. Along with sales and inventory for a period
What Is a Retail Investor? A retail investor, also known as an individual investor, is a non-professional investor who buys and sells securities or funds that contain a basket of securities such as mutual funds and exchange traded funds (ETFs). Retail investors execute their trades through traditional or online brokerage firms or other types of
What Is a Retail Note? A retail note is a debt obligation issued by a corporation. They can be purchased directly from the issuer at par in $1,000 increments, like bonds, but with no accrued interest or added markups. They are subordinated and unsecured debt and are often an attractive option compared with bonds. Key
What Is a Retail Repurchase Agreement? A retail repurchase agreement, also known as a “retail repo agreement,” is a financial product that serves as an alternative to traditional savings accounts. When an investor enters into a retail repurchase agreement with a bank, that investor purchases a share of a pool of securities, usually consisting of
What Are Retail Sales? The term “retail sales” refers to an economic metric that tracks consumer demand for finished goods. This figure is a very important data set as it is a key monthly market-moving event. Retail sales are reported each month by the U.S. Census Bureau and indicate the direction of the economy. It
What Are Retained Earnings? Retained earnings are the cumulative net earnings or profits of a company after accounting for dividend payments. As an important concept in accounting, the word “retained” captures the fact that because those earnings were not paid out to shareholders as dividends, they were instead retained by the company. For this reason
What Is a Retainer Fee? A retainer fee is an amount of money paid upfront to secure the services of a consultant, freelancer, lawyer, or other professional. A retainer fee is most commonly paid to individual third parties that have been engaged by the payer to perform a specific action on their behalf. These fees
What Is a Retaliatory Eviction? A retaliatory eviction occurs when a landlord attempts or succeeds at removing a renter, or refuses to renew a lease in response to a complaint or action that is within a tenant’s legal rights. Retaliatory evictions are generally illegal, as they take place following a tenant’s exercise of one or
What Is a Retention Bonus? A retention bonus is a targeted payment or reward outside of an employee’s regular salary that is offered as an incentive to keep a key employee on the job during a particularly crucial business cycle, such as a merger or acquisition, or during a crucial production period. This payment, meant
What Is the Retention Ratio? The retention ratio is the proportion of earnings kept back in the business as retained earnings. The retention ratio refers to the percentage of net income that is retained to grow the business, rather than being paid out as dividends. It is the opposite of the payout ratio, which measures
