This category covers all kinds of topics in finance including corporate finance and financial management. The topics on financial institution and stock exchange will also be included.
What is Closed-End Credit? Closed-end credit is a facility where the borrower can draw the available amount once and must repay by a specific date including interest. It comes with a specified term, interest rate, installment method, and repayment terms. The borrower can only withdraw the available funds once and will repay over the loan …
Closed-End Credit Vs Open Line of Credit – What’s the Difference? Read More »
Compulsory liquidation is the process of following court orders to dissolve a company and sell its assets to satisfy creditors. This process often takes place with creditors appearing in court. However, other stakeholders like regulators and shareholders can also apply for it. Let us discuss what is compulsory liquidation, how it works, and what are …
Utility tokens are linked to specific projects or products and serve as an incentive to investors. Asset-backed tokens are backed by a digital asset. Both types of tokens are linked to cryptocurrencies somewhat but serve different purposes for issuers and users. Let us discuss what are utility tokens and asset-backed tokens and some key differences …
Utility Token Vs Asset-backed Token – Key Differences and Similarities Read More »
The truth in lending act (TILA) was introduced in 1968 to protect credit consumers from misleading and predatory practices of lenders. It mainly requires lenders to provide information to borrowers necessary to make informed decisions about a lending offer. Let us discuss what is TILA, how it works, and how it benefits borrowers. Truth in …
The corporate veil protects business owners from financial and legal liabilities of the business. It is provided to limited liability companies (LLCs) and corporations. Piercing the corporate veil means shareholders of a business do not enjoy impunity. Let us discuss these two concepts in detail and see how the corporate veil works. What is a …
What is the Corporate Veil and What Does Piercing the Corporate Veil Mean? Read More »
A loan and a line of credit are two different types of debt instruments. Both these products offer a certain type of borrowing facilities to borrowers. Depending on the type and the borrower’s needs, a loan and a line of credit may offer different benefits and drawbacks. Let us discuss what are the key differences …
Annual percentage rate (APR) and annual percentage yield (APY) are both types of interest rates. Both these terms look similar but are significantly different. APR is a simple interest rate whereas APY is the yield that considers the compounding effect of interest. This results in significantly different uses for both these rates. Let us discuss …
APR Vs APY: What’s the Difference? (With Examples) Read More »
Portfolio rebalancing is the periodic adjustment of asset allocation in an investment portfolio. It can be performed for individual and corporate investors. The main purpose of rebalancing is to maintain the risk exposure of the portfolio within the defined objectives of the investor. Let us discuss what is portfolio rebalancing, how it works, and what …
The compound annual growth rate and the internal rate of return are both commonly used types of rates of return. Individual investors and businesses can use these two metrics to compare different investment options. Both of these metrics offer different perspectives and can be used in different situations. Let us discuss what are CAGR and …
Internal growth rate (IGR) is the measure of the growth of a business without external financing. It is driven by the net income and retained earnings of a business. Let us discuss what is IGR and how to calculate it. What is Internal Growth Rate? Internal growth rate (IGR) is the level of growth achieved …
What is Internal Growth Rate and How to Calculate It? Read More »
