Accrued Interest applies to a bond or loan, accounting for the interest that is calculated per diem for the time between payments.
Accrued Interest is the amount of interest that has "built up" between the last payment and the present, with regards to bonds and loans. If a bond is sold from one person to another, and the corporation or municipality that issued the bond pays out an interest payment at regular intervals, the sale price will have to factor-in the "accrued interest" since the last distribution, and the buyer will have to pay the seller for the accrued interest due while the latter held the bond.
When the next interest payment comes in, the new owner of the bond nets the interest from the time since he acquired it. In terms of debt and loans, of course, accrued interest can mean the total amount of interest payments due to the lender since the last payment.
Accrual accounting is used by corporations for their balance sheets. It also plays a role in investments such as CMOs, where debts are pooled in tranches.
Market capitalization is a measure of a company’s size, in terms of the value of its total outstanding shares
Hedge funds can employ many strategies and focus on virtually any kind of investing style. As of 2016, the are over 12,000
The choice between a Roth IRA and a Traditional IRA depends on available discretionary income and financial situation
An account freeze stops all pending transactions and does not honor new transaction requests for a financial repository
Studies suggest that it is not wise to put too much faith in any market analyst or commentator
Bear markets are loosely defined as periods when the market experiences declines in magnitude of 20% or more in stock trading
The mortgage forbearance agreement is designed to be a temporary solution to an unforeseen issue with the borrower (unemployment, health issues).
The Dividend Discount Model (DDM) is a method for valuing a stock, that looks at expected future dividend payouts and adjusts to present value.
The world of finance can be complicated, and understanding the implications of certain transactions is essential for anyone looking to make informed decisions.
Form 1040-X is the amendment form used to change previously submitted information from the 1040, 1040-A, or 1040-EZ tax filing form.