What is the Middle Office and what does it do
The Middle Office is a term used to describe the functions within a financial institution that are designed to support the Front Office. The Middle Office is typically responsible for...
Deferred draw term loans are increasingly popular in the larger syndicated loan market, which is famous for providing capital to borrowers with high debt to income ratios and poor credit ratings. These loans are incremental, long-term capital loans that...
What is Modified Cash Basis accounting
Modified Cash Basis accounting is an accounting method that recognizes revenue and expenses when they are received or paid, rather than when they are incurred. This means that businesses using Modified Cash Basis accounting...
What is net investment and how is it calculated
Net investment is a measure of the total value of new investments made in a economy minus the value of investments that have been deducted. The calculation of net investment is...
What is authorized stock and why is it important
Authorized stock is the total number of shares of a company that are approved by its board of directors to be sold to investors. It's important because it sets an upper...
The Advantages and Disadvantages of Cost and Modified Cash Basis Accounting Methods
There are three primary types of accounting methods: Cost and High-low. In this article, we'll discuss the advantages and disadvantages of each one. There is also a section...
What is Regulatory Risk
Regulatory risk is the possibility that a company will face increased scrutiny from regulators or be subject to new regulations that could adversely affect its business. This type of risk is often heightened in industries that...
What Is the Durbin-Watson Statistic?
The Durbin-Watson statistic is a statistical test for autocorrelation. It was named for Geoffrey Watson and James Durbin. John von Neumann developed the small sample distribution for this statistic. This article will explain its definition...
What is unearned premium and why does it exist
An unearned premium is a portion of an insurance policy premium that has been paid but not yet earned by the insurer. This happens because insurance policies are usually paid in...
What is an Evergreen Contract
An evergreen contract is a type of business contract in which the terms do not expire. This means that, unlike a traditional contract which has a set duration, an evergreen contract will continue indefinitely. There...