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Business

Financial glossary · plain-language definition · Sec Filings

What the company does, how it makes money, and what makes it different. Understanding the business model is step one of any investment analysis.

Why it matters

Understanding the business model is the foundation of any investment analysis. You need to know what you own before evaluating whether it's cheap or expensive.

How to read it

Look for clarity and simplicity. The best businesses can be explained in one sentence. Watch for revenue concentration (single customer/product risk), geographic exposure, and whether the business is asset-heavy or asset-light.

Related terms

CEO Pay Ratio · Conflict of Interest · Explanation by Omission · Fair Dealing · Form 4 · GIPS

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Definitions are for educational purposes only. Not financial advice. Oxford Ledge does not guarantee accuracy or completeness of information.