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What is a Hedge Fund?

If you watch financial media with any regularity, you’ve heard the term “hedge fund” before. Headed by a manager (typically a registered investment advisor), these funds are for eligible qualified investors to pool their money and invest. They have an extremely high barrier to entry and don’t play by the same rules as other managed investment products. That said, they also carry a tremendous level of risk.
The big draw of hedge funds is their highly leveraged nature, which leads to significant return on investment (ROI). These funds are where high-net-worth individuals park their wealth and let it work for …read more […]

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What is a Variable Cost?

The amount of money many companies spend is in many ways directly proportionate to how much they produce. That is, there are a lot of variable costs that come with running a company. These costs are periodic and vary depending on the level of output or sales of a company. These costs can include labor, raw material, distribution costs and more. Variable costs correlate with production: the more a company produces, the higher its variable costs.
In most cases, a business’ variable costs are synonymous with its cost of goods sold (COGS). They’re opposite fixed costs and tend to factor …read more […]