4 Finance Terms Investors Should Know

Sometimes on Industry Focus, we dive right into a subject and forget to explain what some of the more in-the-weeds financial terms really mean.

This week's Tech show is a start at remedying that. In this episode, host Dylan Lewis and contributor Evan Niu explain exactly what they mean when they talk about the network effect, and then talk about how it affects companies like Facebook (NASDAQ: FB) and Snap (NYSE: SNAP); what operating leverage is, and how it affects companies; the difference between capitalizing and expensing, and what they mean for companies; what deferred revenue is, and why companies use it in their earnings reports; and more.

A full transcript follows the video.

Source: Fool.com