Murabaha
Islamic Debt Financing - Murabaha The Islamic mode of debt financing known as murabaha is a form of credit agreement that enables a buyer and seller to agree on the cost-plus or markup price for the goods they are buying or selling. However, this form of credit has some risks that must be understood before utilizing it for business purposes....
Swingline Loan
What is a Swingline Loan A Swingline loan is a type of business loan that gives the borrower the ability to access a line of credit up to a certain amount. The borrowing limit is usually determined by the lender, and the interest rate is generally floating. This means that the interest rate will change based on market conditions. The advantage...
Junior Mortgage
What is a junior mortgage and how does it work A junior mortgage is a loan that is secured by the property, but which has a lower priority than the primary mortgage. In the event that the borrower defaults on the loan, the junior mortgage will only be repaid after the primary mortgage has been satisfied. Junior mortgages are often...
Additional Paid-In Capital
What Is Additional Paid-In Capital? Additional Paid-in Capital is the premium a company receives from investors either at its initial public offering (IPO) or when it sells primary shares. This is accounted for in shareholders' equity and counterbalances the cash it receives from its primary shares. In most cases, the additional capital is recorded as a current asset. If you...
Accrued Liability
What is an accrued liability An accrued liability is a financial obligation that has been incurred but has not yet been paid. This can occur when goods or services are received but invoices have not yet been issued, or when expenses have been incurred but have not yet been recorded in the accounting records. Accrued liabilities are classified as current liabilities...
Loan Loss Provision
There are two fundamental approaches to loan loss provisioning: a negative approach and a discretionary approach. Negative provisioning is the most traditional approach, whereas a non-discretionary approach is the most modern approach. Both approaches have benefits and drawbacks, but whichever one you choose, it is important to understand the risks and rewards of each method. The following discussion will...
Hybrid Arm
What is a hybrid arm and how does it work A hybrid arm is a type of prosthetic arm that combines the best features of myoelectric and body-powered devices. The arm consists of a hook or hand, which is attached to a cable system. The user controls the movement of the arm by contracting their muscles, which sends electrical signals...
Brown Bag Meeting
Three Ways to Successfully Organize a Brown Bag Meeting Brown bag meetings are a combination of a seminar and a small-group meeting. They are focused on problem-solving and develop a team-building spirit. The results of a brown bag meeting are then presented to the entire meeting. The purpose is to transfer these ideas from individual contributors to the collective members....
Gamma Hedging
Gamma hedging is a form of risk management that is credit in nature. It involves adding diverging option positions to your portfolio. This strategy is applicable in markets with low volatility. This method is different from delta neutral risk management because it involves credit-risk hedging. Let's take a look at the basics of gamma hedging. In simple terms, it...
Option Pool
What is an Option Pool An option pool is a portion of a company's equity that is set aside for issuance to future employees, directors, and consultants. The size of the option pool is typically determined at the time of a company's initial investment funding, and the options are typically granted when an employee joins the company. The option pool serves...