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Outside Director

Outside Director

What is an outside director An outside director is a member of a company's board of directors who is not employed by the company. Outside directors are typically brought in to provide independent oversight and help to set strategy. They can also bring valuable insights and connections from other businesses. While outside directors are not always experts in the company's...

Onerous Contract

Onerous Contract

What is an onerous contract and why should you avoid them An onerous contract is a contract that puts an undue burden on one party, often because that party was not adequately informed of the terms of the contract before entering into it. Onerous contracts can be found in many different contexts, but they are particularly common in business deals...

Acquisition Premium

Acquisition Premium

What is an acquisition premium and why do companies pay it? When one company buys another, the price paid is often greater than the current market value of the target company's shares. This difference is known as an acquisition premium, and there are a number of reasons why companies may be willing to pay one. The most common reason is...

Rolling Returns

Rolling Returns

What are Rolling Returns Rolling returns are a type of investment return that measures the performance of an asset over a specific period of time. The timeframe can be annual, monthly, or even daily. Rolling returns are useful for investors because they provide a more accurate picture of an investment's true performance. For example, let's say you are considering investing...

Dollar Duration

Dollar Duration

The importance of dollar duration When it comes to investing, there are a lot of different things that investors need to consider. One of the most important things is something called dollar duration. Dollar duration measures the sensitivity of a bond's price to changes in interest rates. In other words, it tells you how much the price of a bond...

Book Building

Book Building

What is book building and why should you do it Book building is the process of selling shares in an initial public offering (IPO) directly to institutional investors, rather than to the general public. By doing this, companies can get a better sense of what institutions are willing to pay for their shares. This information can then be used to...

Outlay Cost

Outlay costs

What is an Outlay Cost Outlay costs are expenditures that a business incurs through its operations. These costs can include materials, labor, overheads, and depreciation. They are often periodical in nature, such as monthly or yearly. Outlay costs are different from one-time investments, such as the purchase of machinery, which are not included in outlay costs. Businesses use outlay costs...

Funded Debt

Funded Debt

What is funded debt Funded debt is a type of long-term borrowing that is typically used by governments and large corporations to finance major capital expenditures. The terms of the loan are typically 20 years or more, and the interest payments are often tax-deductible. Because of the long-term nature of the loan, it is important to carefully consider the repayment...

Lockbox Banking

Lockbox Banking

What is Lockbox Banking Lockbox banking is a type of banking service typically used by businesses to speed up the receipt of payments. With lockbox banking, businesses send their payments to a post office box that is managed by a bank. The bank then processes the payments and deposits them into the business's account. This can save businesses both time...

Commingled Fund

Commingled Fund

What is a commingled fund and what are its benefits A commingled fund is a type of investment vehicle that pools together money from multiple investors and invests it in a variety of assets. The main advantage of investing in a commingled fund is that it provides economies of scale, which can lower expenses and increase returns. In addition, commingled...