Usance
What Is Usance? If you've ever received a letter of credit, you've probably wondered what Usance means. This term refers to a fee that the issuing bank charges to use the letter of credit as a deferred payment method. The tenor of a letter of credit is typically pre-determined and based on a pre-arranged agreement between buyer and seller. Read...
Overnight Index Swap
What is an overnight index swap An overnight index swap is an agreement between two parties to exchange a series of payments based on a specific interest rate index. The most common type of overnight index swap is based on the Federal Reserve's Effective Federal Funds Rate, which is the rate banks charge each other for overnight loans. Overnight index...
Fixed Capital
How Fixed Capital Can Increase the Value of a Company's Balance Sheet A real physical asset used in the production of a product is referred to as fixed capital. This type of asset is long-lasting and will not be consumed in one period. Its long-term use makes it an excellent investment for a business. However, if you plan to use...
Limit Order Book
What is a limit order book A limit order book is a tool that helps traders to trade assets by allowing them to set the price at which they are willing to buy or sell. By setting a limit, traders can ensure that they do not overspend on an asset, or sell for too low a price. In addition, limit...
5 Ways to Stay Ahead Financially
Planning your future is crucial, and your financial situation plays a vital role in the journey. You don’t have to be a pro when it comes to saving money, but you can make some wise choices along the way. Securing your financial situation does not mean that you have to cut down all the fun in your life and...
Stay Extra Safe When Sending Money Online With These Tips
When it comes to sending money online, safety should be your number one priority. There are many scams out there that can leave you out of pocket, so it's important to be aware of what to watch out for. In this blog post, we will give you some tips on how to stay safe when sending money online. We'll...
Lehman Formula
What is Lehman Formula The Lehman Formula is a mathematical formula used to calculate the amount of time required for an investment to double in value. The formula is based on the rule of 72, which states that the number of years it takes for an investment to double in value is approximately equal to 72 divided by the annual...
Preservation of Capital
What is capital preservation and why is it important Capital preservation is the investment strategy of protecting an investor's original investment. Capital preservation is often a primary goal for investors who are risk-averse or have a short time horizon. While capital preservation strategies vary, they all share the common goal of preserving principal. Many different types of investments can be used...
Void Transaction
What is Void Transaction? A void transaction is a financial transaction that is canceled or not processed. This can happen if the transaction is incorrect, if there are insufficient funds to complete the transaction, or if the parties involved agree to cancel the transaction. In some cases, a void transaction may be converted into another type of transaction, such as...
Push Down Accounting
What is Push Down Accounting and how does it work Push down accounting is an accounting method in which the financial statements of a subsidiary are consolidated with the parent company, even though the subsidiary is legally separate from the parent. This method is used when the subsidiary is 100% owned by the parent company. The purpose of push down...