Debt is money owed from one party or parties to another, plain and simple.
Whether it’s money borrowed, loaned, credit, or a good sold for which payment has yet to be received, debt lives on just about every company and government’s balance sheet. Debt has a negative connotation generally, but it is not always a bad thing - in fact, having certain type of debt is good!
Especially if the corporation or person borrows money at an attractive interest rate in order to invest in an asset that they expect to generate a higher return. In order to maintain a good credit standing, it is imperative that a borrower make interest payments on time and never default on debt.
A market maker is a broker-dealer firm or a registered individual that will hold a certain number of shares of a...
To be “listed” means a stock has been registered and approved for trading on an exchange
An ‘expiration date’ refers to the time when an option contract must either be acted upon by the owner or left to expire
Hedge funds are private investment groups that attract high net worth individuals and use riskier investment strategies
Subprime loans are loans made by institutions to individuals who do not meet the standards for a desirable loan client
Compounding refers to when your asset generates interest. Put simply, it’s when your earnings generate additional earnings
A credit crunch is when access to liquidity dries up dramatically in rapid fashion, due to a spick in borrowing rates
The rating in question here, B3/B-, is on the low end of the “Highly Speculative” subset. Risk of defaulting is over 20%
A foreign fund is a mutual fund that invests solely in companies abroad, and does not invest in corporations in the US
The Cup-and-Handle pattern is formed when a stock price initially declines and then rises to form a “U”like shape