Baby bonds are typically categorized as unsecured debt, meaning the issuer or borrower does not pledge any collateral to guarantee interest payments and principal repayments in the event of default. Therefore, if the issuer defaults on its payment obligations, baby bondholders would get paid only a...
Speculative investments tend to have higher volatility, meaning they experience frequent price fluctuations. Angel investors and venture capitalists often choose speculative investments. The idea is that the high risk and chance of making the wrong bet are worth taking to potentially reap big returns. ...
an ETN's value is impacted by thecredit ratingof the issuer. The value of the ETN could decline due to adowngradein the issuer's credit rating, even though there was no change in the underlying index.
Similarly (though perhaps less important), you’ll enjoy priority boarding privileges—meaning your feet will be two of the first to board the plane. You’ll still board behind folks like active duty military and families with small children, but you’re still guaranteed a few extra minutes to...
When we think of a mortgaged asset, we tend to think of a residential home loan issued to a borrower by amortgage lenderwith the home used as collateral in case the borrowerdefaultson the loan, meaning they fail to make the payments. ...
The purpose of the NDA is to prevent business confidential information from becoming public knowledge. For example, if an independent contractor came across the secret formula for Coca-Cola®, they would be prohibited from telling anyone else without serious repercussions (meaning a major lawsuit ...
Simple interest is calculated based on the original amount you borrowed or what you have in the bank. This is called your "principal." Simple interest applies a fixed rate, meaning that the interest remains the same for the lifetime of the loan or account. Compound interest, however, is ca...
By understanding the nuances between digital signature meaning and e-signatures, you can make informed decisions about how to secure your digital documents. Whether you're an individual or a business, implementing robust digital sign solutions can enhance security, streamline processes, and boost effici...
As the protocol encrypts all client-server communications through SSL/TLS authentication, attackers cannot intercept data, meaning users can safely enter their personal information. Gaining user trust is especially important for online businesses, such as e-commerce stores. Potential customers need ...
The reserve tranches with the IMF are considered their facilities of first resort, meaning they can tap into them before seeking a formal credit tranche that charges interest. Understanding Reserve Tranches The IMF is funded through its members and their quota contributions. The reserve tranche is ...