Annual percentage yield (APY) is the effective annual rate of return on an investment. Learn how it accounts for compounding interest and how it differs from APR.

Run rate projects annual figures from shorter periods, using multiplication (e.g., quarter x 4). Using run rate aids in forecasting annual earnings, especially after major business changes. Risk: run ...

Interest rates are a measure of the cost of a loan to a borrower. Typically expressed as a percentage, an interest rate is applied to the outstanding balance of a loan at regular intervals. Interest ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

The federal funds rate, or fed funds rate, is the interest rate that U.S. banks charge each other for uncollateralized, overnight loans. As these short-term loans are a foundational part of banking ...

Conversion rate is one of the most common metrics used by marketers, sales folks, and business professionals. It is discussed often and taken on the surface as an important metric or key performance ...

A cap rate helps determine if a real estate investment is worth pursuing. The cap rate formula involves dividing a property's net operating income (NOI) by its purchase or appraised value. Higher cap ...