Financial Literacy

A shareholder is any person, company or organization that owns one or more shares of a company. This ownership stake is an investment vehicle.

Short selling hopes prices decrease so they can buy back the shares at a lower price and keep the difference. This carries high risk.

A sole proprietorship is owned by an individual, and the individual is responsible for all debts of the business. It is not a separate entity.

The Securities and Exchange Commission (SEC) is a federal organization that governs and enforces the laws of the security industry to protect investors.

The company has partnerned with Pagaya (a fintech company) and plans to integrate Pagaya’s tech into SoFi’s product offerings.

Salvage value is the estimated book value of a depreciable asset at the end of its expected useful life that helps calculate depreciation.

Straight-line depreciation is calculated by subtracting the salvage value from the asset’s cost and dividing it by the years estimated for its useful life.

A recession is a period of decline in economic activity and often defined by a continuous decline in gross domestic product for two consecutive quarters.