A negative interest rate policy (NIRP) is an unconventional monetary policy tool employed by a central bank whereby nominal target interest rates are set with a negative value, below the theoretical lower bound of zero percent. A NIRP is a relatively
A bridge loan is a short-term loan used until a person or company secures permanent financing or removes an existing obligation. It allows the user to meet current obligations by providing immediate cash flow. Bridge loans are short term, up to one
Dividend per share (DPS) is the sum of declared dividends issued by a company for every ordinary share outstanding. The figure is calculated by dividing the total dividends paid out by a business, including interim dividends, over a period of time by
Tax free refers to certain types of goods and financial securities (such as municipal bonds) that are not taxed. It also refers to earnings that are not taxed. The tax free status of these goods, investments, and income may incentivize individuals
Valuation reserves are assets that insurance companies set aside per state law to mitigate the risk of declines in the value of investments they hold. They function as a hedge to an investment portfolio.
A qualified domestic relations order is a legal document, typically found in a divorce agreement, that recognizes that a former spouse is entitled to receive a predefined portion of the other spouse’s individual retirement plan assets.
The term visibility is used to portray the extent to which a company’s management or analysts can estimate future performance. Visibility can range from low to high or from the near-term to the long-term.
Oversupply is an excessive amount of a product. Oversupply results when demand is lower than supply, resulting in a surplus. Simply put, an oversupply is when there is more product for sale than people are prepared to buy. There are many reasons why
Reinsurance ceded refers to the portion of risk that a primary insurer passes to a reinsurer. It allows the primary insurer to reduce its risk exposure to an insurance policy it has underwritten by passing that risk to another company. Primary insurers
Financial risk is the possibility of losing money on an investment or business venture. Some more common and distinct financial risks include credit risk, liquidity risk, and operational risk.