Articles on Stock markets
News, Research and Analysis
What is Bad Debt?
Lending companies or other companies with Receivables may characterize certain unpaid accounts as Bad Debt and write off the losses.
Bad debt is debt that is on the books and is in default, meaning payment has not been made on it in a long while. Creditors, banks, and companies may periodically get bad debt off of their accounting books by moving it out of Receivables.
Most companies have attempted to calculate their exposure to default risk and bad debt, and have allocated amounts into accounts such as Allowance for Doubtful Accounts (ADA). It can be passed off to debt collection agencies, but most of the debt will never be recouped.
Individuals with bad credit scores are seen as potential sources of bad debt, and these institutions will either avoid giving them credit or e them enough interest to make it more palatable. Individuals and businesses have credit rating scores that will decline more and more if they do not pay their debts off in a timely manner, and this score is publicly searchable to protect lenders and consumers from exposure to unnecessary risk.
Bad debt can be defined with a threshold amount at which point it becomes more expensive to attempt to collect the debt than to give up and write it off.
What is the minimum investment in a typical hedge fund?
Hedge funds can require initial investments that are quite large. This may be somewhere between $250,000 to $10,000,000
How Can I Establish a Money Purchase/Profit Sharing Plan?
A written plan document must be established and distributed to all employees notifying them of the plan and of all
What is a Cash-Balance Plan?
Cash balance plans are a type of pension in which the benefit is stated as a future account balance rather than an income
What is Accounts Receivable Financing?
Financing companies can take over the accounts receivables of a company who no longer wants to wait to be paid on receivables
What is a Balloon Payment?
A balloon payment is a lump sum due at the end of a balloon loan term. These terms are usually relatively short (5 yrs)
Do I Need Professional Help to Prepare a Will?
Generally speaking, however, it makes sense to hire legal help to create your last will and any related trusts, as...
What is a Money Market?
Money market securities are essentially IOUs issued by governments, financial institutions and large corporations
What is currency exchange?
Currencies are exchanged for each other on a massive scale on the international Forex market. Millions engage in trading
At What Age Should I Buy Long-Term Care Insurance?
Generally speaking, the earlier you purchase long-term care insurance the less expensive it will be in terms of...
What Rights Does Owning Shares of Corporation Give You?
Shareholders of a company are part-owners of the company, and they are entitled to two things: voting for board...