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Finance GlossaryAccrued Expenses
Accrued Expenses
Definition of Accrued Expenses
An accrued expense is the cost that is incurred in the current accounting period but is due to be paid in the future.
More simply, an accrued expense is an unpaid bill due in the future for goods or services that have already been received by a company.
Accrued expenses show up as liabilities on a company’s books.
More simply, an accrued expense is an unpaid bill due in the future for goods or services that have already been received by a company.
Accrued expenses show up as liabilities on a company’s books.
Related Terms
Scalping
Scalping is a short-term trading strategy. Here, traders can make strong profits as they engage in transactions as the stock prices frequently move. Usually, these positions are held for seconds or minutes. The liquidity of the stock and tight spreads determine the success of the strategy. In scalping, each trade generates a small profit. However, with consistency and discipline, traders can benefit from scalping over time.
Matching Orders
Matching Orders refers to the process by which a stock exchange pairs buy and sell orders, prioritising based on price and time (Price-Time Priority). If a buyer’s price matches a seller’s price (order matching), a trade is executed. This automated mechanism ensures fair, transparent, and efficient order execution in the market.
Margin Call
Margin call occurs when a brokerage firm requires the investor to deposit funds in their account or sell their securities in order to meet the minimum margin requirement in their account because the value of their leveraged investments has dropped below a required level. If market participants fail to do so, the broker forcibly closes the position to protect their loaned funds.
Dividend Stripping
Dividend stripping is a strategy of buying a company’s stock days before it announces a dividend and then selling the same stock at a lower price once the current holder is entitled to get the dividend previously announced.
The resulting loss in capital gains is generally offset by the profits from dividends. Dividend stripping was once non-taxable, which made the strategy lucrative for smart investors. However, dividends in India are now subject to tax.
The resulting loss in capital gains is generally offset by the profits from dividends. Dividend stripping was once non-taxable, which made the strategy lucrative for smart investors. However, dividends in India are now subject to tax.
Resistance Level
A resistance level is a specific price point where a stock or asset repeatedly finds it challenging to move higher. The selling pressure usually increases at this level as traders book profits or expect a reversal. When the price breaks above this level with strong volume, it shows increasing bullish strength. It carries the potential for continued upward momentum.
Free Cash Flow
Free float market capitalization is the market cap of a company based on the total freely available publicly traded outstanding shares. The formula to calculate free float market capitalization is:
Free float market capitalization = Share Price x (Number of Shares Available for Trading – Private and Locked-In Shares)
When calculating the free float market cap of a company, the number of shares held privately or the shares that are locked-in are not taken into account. Typically, these shares are held by promoters and the government.
Free float market capitalization = Share Price x (Number of Shares Available for Trading – Private and Locked-In Shares)
When calculating the free float market cap of a company, the number of shares held privately or the shares that are locked-in are not taken into account. Typically, these shares are held by promoters and the government.
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