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What is Chapter 15?
Chapter 15 bankruptcy is a newer type of bankruptcy filing that has only been around since 2005. It allows foreign companies access to the US bankruptcy court system in certain circumstances. This is part of the US’s compliance with international trade laws. Part of the aim of bankruptcy law is to preserve employment and protect investment. In an increasingly globalized economy it is understandable that the US could offer hearings to corporations which straddle national borders but are not based in the US. Continue reading...
What is a currency basket?
Currency baskets are composed of weighted amounts of certain currencies. The most common use of a currency basket is as a benchmark for certain economic analysis, but it can also be used as a unit of account where an international organization has constituents that use various currencies. A basket of currencies is a weighted index of various currencies which serves a specific purpose as a benchmark or as a unit of account. Continue reading...
What is an ETF? Definition
ETFs are very popular and useful investment vehicles that offer affordable diversification and professional portfolio management. An ETF is a basket of securities that is designed to ‘mimic’ the performance of an index, sector, or category of securities. For example, the ETF with ticker SPY is designed to track the performance of the S&P 500, and the company that creates the ETF (in this case Barclays iShares) builds the ETF simply by purchasing the 500 stocks in the S&P 500. Investors can purchase shares of the ETF as a means of gaining instant access to all 500 stocks in the S&P 500, thus tracking its performance. Continue reading...
What is foreign aid?
Wealthy countries and non-government organizations frequently donate or lend resources to help the population of a country in dire economic need. This can come in the form of educational assistance, funds, materials, construction, food, medicine, and so on. On a macroeconomic scale, foreign aid constitutes one of the major forms of asset transfer between different parts of the world. Governments, charitable organizations, and NGOs donate or lend resources to countries that cannot supply their own needs effectively. Aid can be given altruistically, that is, just for the sake of doing good deeds, or it can be used as a tool for influence or personal gain, which is common. Continue reading...
What is a currency symbol?
Currency symbols are characters written or typed in a specific arrangement alongside the numerical values of a currency amount, to denote the kind of currency in which the amount of money is held. An example would be the dollar sign ($), which is placed at the beginning of the numbers which describe the amount of currency in question, despite the fact that in most languages the word “dollars” follows the numbers when spoken. Many currencies have their own symbol but not necessarily all do. Continue reading...
What are the Forms of Ownership of a Corporation in the United States?
There are many different forms of ownership of a company in the United States. This subtopic describes some of them. Corporations can be privately held or publicly traded. There are also C-Corporations (C-corps), which are the typically large companies controlled by a board of directors, and S-Corporations (S-Corps), which are smaller and have some of the characteristics of LLCs. LLC is an abbreviation for Limited Liability Company, which is a pass-through entity for partnerships or sole proprietors which shields the private assets of the owners from the liabilities of the business. LLCs are almost entirely regulated by state law, and while they can issue stock, it depends on the state. Continue reading...
What is the definition of USD (United States Dollar)?
Unlock the secrets of the United States Dollar (USD) - from its intriguing origins as the "greenback" to its global dominance today. Dive into its complex relationship with gold, international significance, and evolving role in the modern economy. Discover the power behind the $1 bill's nicknames and unravel the USD's captivating journey through history and finance. 🌐💰 #USDExplained Continue reading...
What's the process involved in Restricted Stock Units (RSUs)?
Unlock the power of Restricted Stock Units (RSUs)! Learn the ins and outs of this employee compensation tool – from vesting to taxes. As a financial advisor, seize the chance to guide your clients in maximizing the value of their RSUs. Don't miss this comprehensive guide! 💼📈 #RSUs #FinancialPlanning Continue reading...
What Are Restricted Stock Units (RSUs) and How Do They Work?
Restricted Stock Units (RSUs) are becoming an increasingly popular form of employee compensation. But what are they, and how do they work? Dive into this comprehensive guide to understand the intricacies of RSUs, from their evolution and tax considerations to their real-world applications. Whether you're an employee receiving RSUs or an employer considering them as a compensation tool, this guide offers valuable insights into the benefits, challenges, and key distinctions of RSUs. Equip yourself with the knowledge to navigate the complex world of equity-based compensation and make informed decisions. Continue reading...
What is IRS Publication 513, Tax Information for Visitors to the United States?
IRS Link to Reporting Guidelines — Found Here Despite how it sounds, this publication is not meant for tourists to the US, but rather for non-US-citizen workers who might be considered either resident aliens or nonresident aliens, or dual-status if they can be considered both within the same year. Non resident aliens do not have to file a return if they did not earn more than the standard annual deduction amount. This guide is relatively short by IRS Publication standards, at only about 20 pages. Continue reading...
What is Securitization?
Securitization is to turn an asset which would otherwise not be a liquid, tradable security, into one. Simply put, securitization turns assets into securities. The most common example when discussing securitization is mortgage-backed securities, in which the cash flow of interest and principal payments on mortgage loans has been pooled, cut up, and distributed for sale in the form of marketable securities which can be held by an everyday investor. The bank or institution who sold the mortgage-backed securities receives cash which they can loan out to more home-buyers. Continue reading...
What is Dividend Drag?
When an ETF is not able to offer a quick, automatic dividend reinvestment option to clients, it can sometimes take a week or more to get the dividends back into the market. In a rising market, this lag can cause the reinvested amounts to purchase higher-priced shares than they would have been otherwise. This drags the performance of the fund down, compared to an index or more efficient fund. The structure of ETFs prevents them from immediately reinvesting dividends, and they often do not offer what is known as a DRIP, or dividend reinvestment plan, which is built into many pooled investments like mutual funds (and other ETFs). Continue reading...
How Many Dollars do We Have in Circulation?
According to the Federal Reserve, there are over 1.7 trillion U.S. Dollars in circulation. This number has been drastically increasing throughout the last few years, mostly due to programs such as Quantitative Easing. As of 2016, QE programs have ended and the Fed's balance sheet is shrinking, but M2 money supply still remains at elevated levels. What is the Size of our National Debt? What is Currency in Circulation? Continue reading...
What is a currency pair?
Currency exchange rates are discussed in terms of currency pairs, where you say how much of a given currency it would take to equal one unit of another currency. The single-unit currency is the “base” currency in the pair, and it appears as the second currency or denominator in the comparison. The base currency is always implied to be 1 unit, so only the value of the other currency in the pair is stated in the exchange rate quote. Continue reading...
What are the essential facts to understand about investing in Treasury Bills (T-Bills)?
Unlock the secrets of Treasury Bills (T-Bills) through the lens of money's core properties: medium of exchange, unit of account, store of value, and standard of deferred payment. Discover how T-Bills embody these principles, offering a secure haven for your investments and contributing to economic stability. 💰 #Investing #Finance101 Continue reading...
What Is a Dog in Business?
In the ever-evolving landscape of business, the term "dog" carries a unique connotation that might initially raise an eyebrow or two. However, in the realm of strategic management, it holds a distinct meaning and significance. A "dog" is one of the four categories within the BCG Growth-Share matrix, a tool developed by the Boston Consulting Group in the 1970s to help companies manage their various business units effectively. In this article, we'll delve into what exactly a "dog" is in business, its characteristics, and its relevance, and we'll also explore the investment world's "Dogs of the Dow" strategy. Continue reading...
Cargo Industry's Top Stocks
The cargo industry, an essential component of the global economy, represents a diverse mix of companies specializing in transportation and logistics. Notably, this sector includes prominent airlines and trucking companies, each playing a critical role in the movement of goods across the world. This article delves into the financial performance and market positioning of top companies within the cargo theme, highlighting United Parcel Service (UPS), FedEx Corp (FDX), Delta Air Lines (DAL), United Airlines Holdings (UAL), C.H. Robinson Worldwide (CHRW), and American Airlines Group (AAL), among others. Continue reading...
What is the Income of the Average American?
This is a simple question, but one that varies almost exclusively based on geographical location (cost of living). According to the US Census Bureau, in 2008, the Median Household Income for the state of Mississippi was $37,818, while the figure for Maryland was $70,482. In California, the average was at $61,017, and in Arkansas it was $38,820. Since the cost of living is drastically different in various states, counties, and even cities, the figure changes drastically. In San Francisco, California, for example, the median income for 2008 was $71,957, while in Billings, Montana, the figure was $35,147 (less than half as much). Continue reading...
What are the properties of money, and how do they influence its functions and roles in society?
Dive into the core properties of money - Fungibility, Durability, Portability, Recognizability, and Stability. Discover how they shape financial functions and impact society. Explore money's evolution and role in our modern world. #FinanceInsights #MoneyMatters Continue reading...
Top Performers in Leasing Financing
The world of leasing financing is an increasingly significant sector within the finance industry, featuring a range of specialty finance companies with varied focuses. From auto finance to airplane leasing, and from real estate lending to student loans, this theme encompasses a broad spectrum of financial activities. Among these, some companies stand out for their performance, market capitalization, and growth potential. This article delves into the details of notable companies like United Rentals (URI), SLM Corp (SLM), and LexinFintech Holdings Ltd (LX), shedding light on why they are considered the best in their class. Continue reading...