Investment Analysis Terms

noun a term used to describe the overvaluation of fossil fuel assets due to the risk of stranded assets as the world transitions to renewable energy

• The concept of a carbon bubble refers to the overvaluation of fossil fuel assets due to the risk of unburnable carbon.
• Investors are starting to worry about the carbon bubble and the potential impact on the fossil fuel industry.
• The carbon bubble is like a ticking time bomb for the oil and gas companies.
• The carbon bubble looming over the economy is like a dark cloud waiting to burst.

noun a word that refers to a person, place, thing, event, substance, or quality

• The accounting equation, assets = liabilities + equity, must always balance in financial statements.
• You always have to make sure the accounting equation adds up correctly in the books.
• The accounting equation is like the math problem that never goes away in accounting.
• Think of the accounting equation as the scales of justice for your company's financial health.