With regards to Margin Trading, ‘Buying Power’ is a term used to describe how much additional leverage you have given the excess equity in your account.
When your broker or custodian authorizes buying on margin, the purchasing power of your assets can become substantial. Instead of just owning $10,000 worth of stock, you might be able to leverage that to buy $10,000 more, therefore having $20,000 of long exposure even though you only have $10,000.
Of course, at least $5,000 of that new purchase is a loan that you have to repay, and the securities that you leveraged are now at-risk. But the ‘Buying Power’ given to you in margin accounts is relevant and can be a useful tool. The buying power will be equal to the cash and the maximum margin available.
CUSIP is basically like a Dewey Decimal number for stocks and U.S./local government bonds. CUSIP stands for Committee...
A penny Stock is a term for equity shares valued below $5, many of which are not registered with the SEC and trade OTC
Corporate equity is retained earnings plus common shares outstanding
The Equity Multiplier is a number used to compare companies, arrived at by dividing total assets by owner’s equity
Cash collateral is liquid cash and cash equivalents designated as collateral for loans and debts of various sorts
A foreign tax credit allows a citizen who earned income in another country to reduce their domestic income taxes owed
Chapter 9 is a form of bankruptcy filing that is reserved for municipalities which have defaulted on their debt
Earnings is another word for the net income of a company. It is one of the most important numbers in corporate finance
Blockchains offer security in that they are almost unhackable; any attempted unauthorized changes to the system are obvious