What is Transaction Exposure
Transaction exposure is the risk that a firm will incur losses due to changes in exchange rates. It can arise when a company makes purchases or sales in foreign currency, or when it has outstanding liabilities...
So you have decided to start your own small business. Hurray! You have managed to tackle the most daunting task: deciding to get started. However, this was just the first challenge. There are many more to come. A hoard...
When choosing investments, the term "investment horizon" is important. A long-term investor needs significant capital to invest. A high-risk, high-return real estate investment may be appropriate if you plan to hold it for a decade or more. A long-term...
What is a revocable beneficiary
A revocable beneficiary is someone who has been named in a will or insurance policy to receive assets upon the death of the person who created the document. However, the creator of the document can...
When a company is evaluating its capital structure, there are several factors to consider, including debt level, the tradeoffs between debt and equity financing, the cost of debt, and the optimal capital structure. For example, a company with an...
What is a hammer clause and what does it do
A hammer clause is a type of clause often found in real estate contracts. It sets forth a specific procedure that must be followed if the parties are unable to...
What is a financial guarantee and what are its benefits
A financial guarantee is a contract between two parties in which one party agrees to reimburse the other for any losses that may occur. Financial guarantees are often used in...
What is the Internal Growth Rate of a Company?
The Internal Growth Rate (IGR) is a measure of the growth potential of a business. It is a result of the operations of a company, and its ability to use its...
What is a feeder fund and how does it work
A feeder fund is an investment fund that invests in another fund, known as the master fund. The master fund is typically a hedge fund or private equity fund that...
What is a debit note
A debit note is a document that is issued by a buyer to a seller as a way of correcting an overpayment that was made on an invoice. Debit notes are also sometimes referred to...