What Is an Adverse Opinion? An adverse opinion is a professional opinion made by an auditor indicating that a company’s financial statements are misrepresented, misstated, and do not accurately reflect its financial performance and health. Adverse opinions are usually given after an auditor’s report, which can be internal or independent of the company. Key Takeaways
What Is Adverse Possession? The term “adverse possession” refers to a legal principle that grants title to someone who resides on or is in possession of another person’s land. The property’s title is granted to the possessor as long as certain conditions are met including whether they infringe on the rights of the actual owner
What Is Adverse Selection? Adverse selection refers generally to a situation in which sellers have information that buyers do not have, or vice versa, about some aspect of product quality. In other words, it is a case where asymmetric information is exploited. Asymmetric information, also called information failure, happens when one party to a transaction has
What Is an Advertised Price? An advertised price is the price of a product or service as displayed or announced in a print, radio, television, or online advertisement. If the advertised price is well below the normal price of a product, it is likely to be a loss-leader that is priced to entice customers into
What Is an Advertising Allowance? An advertising allowance is money that a product manufacturer or service provider pays to a retailer to get the word out about their product. An advertising allowance may also take the form of a supplier or manufacturer giving a discount on inventory provided to a wholesaler or retailer to pay for advertising
What Is Advertising Elasticity of Demand (AED)? Advertising elasticity of demand (AED) measures a market’s sensitivity to increases or decreases in advertising saturation. Advertising elasticity measures an advertising campaign’s effectiveness in generating new sales. It is calculated by dividing the percentage change in the quantity demanded by the percentage change in advertising expenditures. A positive
What Is the Advertising-To-Sales Ratio? The advertising-to-sales ratio, also known as the “A to S,” is a measurement of the effectiveness of a company’s advertising campaign. It can be used to measure the effectiveness of a specific product launch or of a broader policy, rebranding, or new direction in business. Key Takeaways The advertising-to-sales ratio
What Is an Advisor? An advisor is any person or company involved in providing financial advice for payment. Advisors may advise people about investing and investments. Or they may actually invest capital for investors. Registered investment advisors (RIA) and investment advisory companies (IAC) are two registered entities that investors look to for investment management. They’re
What Is an Advisor Account? An advisor account is a type of investment account where investment advisory services are included to help a client formulate and implement investment purchases and strategies. With the growth of robo advisory services, advisor accounts can include multiple levels of service and advice. Many platforms also provide a mix of
What Is an Advisor Fee? An advisor fee is a fee paid for professional advisory services on matters related to money, finances, and investments. It can be charged as a percentage of total assets or it may be associated with a broker-dealer transaction in the form of a commission. Key Takeaways Advisor fees are paid
