In the investment banking for dummies, you have to understand 3 common terms. Well, this is the important term usually used in the investing, especially the investing for the dummies. Why it is important? Because the three terms of the investment banking for dummies is always used for the operation of the company. So, when you want to have the strategy for the company operating, you should also understand the importance of the terms within the investment banking for dummies. If you studied at the trading and forex schools, those terms are always used there so that you will not be strange with the 3 terms of investment banking for dummies.
What is that investment banking for dummies terms you have to know? Those are operating expenses, operating incomes, and operating margin. For the first time, we will explain you about operating expense as the term within the investment banking for dummies. What is operating expenses? Operating expense is the part of the overhead cost of the selling products. So, when you calculate the overhead cost, do not forget to also calculate the operating expense. Although it is not looked, you should calculate it because it is also the expense for the selling product. The operating expense of the investment banking for dummies includes in the fixed cost and variable cost. For the fixed cost, it includes the employee of the salaries, and for the variable cost, it includes the research and development cost.
Investment banking for dummies – operating income and operating margin
Besides operating expense as investment banking for dummies term, you should also understand the other term. It was also often used in the investment banking for dummies. This is operating income. What is that? This is the income determines the powerfulness of the company to operate the company. So, it can be said that this is how much the capital of the company has to operate the company. It describes as the earning of the company before be deducted with the interest rate of the tax. It is like the effort of the company in the investment banking for dummies to turn the capital into the big profit for them.
Within the net sales, you will also see the other term of the investment banking for dummies. This is the operating margin. The net sales of the operating margin are the other description to see the income of the company. The operating margin is the proportion of the company revenue right after the revenue is deducted with the fixed cost and variable cost of the operating expense. This is the valuable thing you have to know in the investment banking for dummies.