What is the 3-6-3 Rule? The 3-6-3 Rule is a term used to describe traditional banking practices that were prevalent in the past. It refers to a simple and straightforward approach to banking, where banks would pay 3% interest on deposits, charge 6% interest on loans, and be on the … …
Active Management: Definition Active management is an investment strategy that involves actively buying and selling securities in order to outperform a specific benchmark or achieve a specific investment objective. Unlike passive management, which aims to replicate the performance of a benchmark index, active management involves making active decisions based on … …
What is an Acceleration Clause? An acceleration clause is a provision in a loan agreement that allows the lender to demand immediate repayment of the entire outstanding balance if certain conditions are not met by the borrower. It essentially accelerates the repayment schedule of the loan, requiring the borrower to … …
All Risk Insurance: Coverage and Exclusions Explained All risk insurance is a type of insurance policy that provides coverage for a wide range of risks and perils. Unlike other types of insurance policies that only cover specific named perils, all risk insurance offers broader coverage by including all risks except … …
What is the 0x Protocol? The 0x Protocol is a decentralized exchange protocol built on the Ethereum blockchain. It enables the peer-to-peer exchange of ERC-20 tokens without the need for intermediaries or centralized exchanges. Unlike traditional exchanges, the 0x Protocol allows users to trade tokens directly from their wallets, maintaining … …
What is an Alternative Trading System (ATS)? An Alternative Trading System (ATS) is a platform or marketplace that facilitates the trading of securities outside of traditional stock exchanges. It provides a venue for buyers and sellers to come together and execute trades directly with each other, without the need for … …
Authorized Stock Definition Authorized stock refers to the maximum number of shares that a company is legally allowed to issue to its shareholders. This number is determined and specified in the company’s articles of incorporation or its charter. The authorized stock represents the total number of shares that the company … …
American Opportunity Tax Credit (AOTC) Definition and Benefits The American Opportunity Tax Credit (AOTC) is a tax credit available to eligible students who are pursuing higher education. It was introduced as part of the American Recovery and Reinvestment Act of 2009 and has since been extended multiple times. The AOTC … …
What is a Bid Bond? A bid bond is a type of surety bond that is required by a project owner or a general contractor from a bidder as a guarantee that the bidder will enter into a contract if their bid is accepted. It provides financial protection to the … …
What are Accounting Principles? Accounting principles are a set of guidelines and rules that govern the preparation and presentation of financial statements. These principles ensure consistency, comparability, and transparency in financial reporting. Importance of Accounting Principles Accounting principles play a crucial role in providing reliable and relevant financial information to … …
Activist Investor: Definition, Role, Biggest Player An activist investor is an individual or group that acquires a significant stake in a company with the intention of influencing its management and operations. These investors typically take an active role in the company, using their ownership position to advocate for changes that … …
Dotcom: What You Need to Know About Definition, History, and Company Examples Definition of Dotcom A dotcom is a company that operates its business primarily online, utilizing the internet as its main platform for conducting transactions, providing services, and interacting with customers. The term “dotcom” is derived from the “.com” … …
Fire Insurance Definition Fire insurance policies may also provide coverage for additional perils, such as smoke damage, water damage from firefighting efforts, and damage caused by explosions. However, it is important to carefully review the terms and conditions of a fire insurance policy to understand the specific coverage provided. Fire … …
What is Acceptable Quality Level (AQL) and How It Works? Acceptable Quality Level (AQL) is a statistical measurement used in quality control to determine the maximum number of defective units that are considered acceptable in a given sample size. It is commonly used in manufacturing and production industries to ensure … …
What Are Alternative Investments? Alternative investments are investment options that are different from traditional investments such as stocks, bonds, and cash. They are considered alternative because they offer investors a different way to diversify their portfolios and potentially achieve higher returns. Types of Alternative Investments There are various types of … …
Definition of Adverse Selection in Economics Adverse selection is a concept in economics that refers to a situation where one party in a transaction has more information than the other party, which leads to an imbalance of information and potentially negative outcomes. It occurs when individuals or firms with hidden … …
Definition of 125% Loan The main feature of a 125% loan is that it allows borrowers to finance not only the purchase price of the home but also additional expenses such as closing costs, home improvements, or debt consolidation. This means that borrowers can potentially borrow more money than the … …
Affordable Care Act: Key Features Some of the key features of the Affordable Care Act include: 1. Health Insurance Marketplaces: The law established online marketplaces where individuals and small businesses can compare and purchase health insurance plans. These marketplaces provide a range of options and financial assistance to make coverage … …
Cash Advance Definition A cash advance is a short-term loan provided by a credit card issuer or a lender. It allows individuals to withdraw cash from their credit card or borrow money against their future paycheck. Cash advances typically come with high interest rates and additional fees, making them an … …
E-commerce: Types E-commerce, or electronic commerce, refers to the buying and selling of goods and services over the internet. It has revolutionized the way businesses operate and has opened up new opportunities for entrepreneurs. There are various types of e-commerce, each catering to different needs and target markets. 1. Business-to-Consumer … …
What is a 529 Plan? A 529 plan is a tax-advantaged savings plan designed to help individuals and families save for future education expenses. It is named after Section 529 of the Internal Revenue Code, which governs these types of plans. 529 plans are typically sponsored by states, although some … …