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What is Chapter 11?
Chapter 11 is a type of bankruptcy filing a company can make to give itself time to reorganize and hopefully continue business.
There are different types of bankruptcy filings a person or business can make, depending on how overwhelming their debt load is. Chapter 11 is a kind of bankruptcy filing that allows the corporate leadership to stay in control of a company while trading freezes on their stock and the company and its debts are reorganized. This is called “debtor in possession.”
A committee will be formed with the company’s unsecured creditors, and they will vote on whether decisions made by the debtor in possession during this restructuring are appropriate actions. If a corporation files Chapter 11, the assets of the owners are separate and distinct. If it is a sole proprietor, the personal assets of the owner are likely to be included, and it closely resembles a Chapter 13 filing.
Trading of the stock on exchanges will be frozen, called a moratorium, but some over-the-counter trading will continue.
What is a Mortgagee?
When a mortgage loan is made, the bank or loan institution is the mortgagee, while the consumer is the mortgagor
Can Blockchains Reduce Fraud and Failed Payments?
Blockchains can validate, clear, and document transfers of value much faster and more securely than traditional methods
What is the Descending Triangle (Bullish) Pattern?
The Descending Triangle pattern is formed when a currency pair price establishes a support level and bounces off that level
What is Discounted Cash Flow?
Discounted Cash Flow (DCF) uses an estimated future cash flow amount and a Discount Rate to determine the Present Value
What is Par Value?
Par value is most often associated with bonds, and refers to the amount that will be returned to the investor at maturity
What are 'Liar Loans'?
Liar loans are a term that refers to loans or mortgages that were granted with little or no request for documentation
A+/A1 — credit rating
A+/A1 is a few ratings down from the top, which is AAA/Aaa. This can be somewhat misleading or confusing to investors
What does Capital Gain Mean?
A Capital Gain refers to the profits or gains made from selling a security at a higher price than the original purchase
What is residual income?
Residual income is a stream of income that persists from one work project or investment
Whats is Commercial Paper?
Commercial Paper is an unsecured short-term loan that a highly rated corporation can issue to finance short-term...