Tag: bank

Distressed Securities definition explanation

What is Distressed Securities?
A financial instrument in a company that is near or is currently going through bankruptcy. This usually results from a company’s inability to meet its financial obligations. As a result, these financial instruments have suffered a substantial reduction in value. Distressed securities can include common and preferred shares, bank debt, trade claims (goods owed) and corporate bonds. Read more for examples and further explanation including related video clips and also comments
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International Commodities Clearing House – ICCH definition explanation

What is International Commodities Clearing House – ICCH?
An international clearing house for futures markets around the world. Based in London, the ICCH maintains and organizes the daily duties of clearing futures contracts and guarantees the due fulfillment of transactions for its registered members. Read more for examples and further explanation including related video clips and also comments
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Revaluation Reserve definition explanation

What is Revaluation Reserve?
An accounting term used when a company has to enter a line item on their balance sheet due to a revaluation performed on an asset. This line item is used when the revaluation finds the current and probable future value of the asset is higher than the recorded historic cost of the same asset. Read more for examples and further explanation including related video clips and also comments
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Enronomics definition explanation

What is Enronomics?
A fraudulent accounting technique that involves a parent company making artificial paper-only transactions with its subsidiaries to hide losses the parent company has incurred through business activities.

By transferring losses to off-book entities or wholly-owned subsidiaries, the now-bankrupt energy corporation Enron created one of the largest accounting scandals and securities frauds in history. Read more for examples and further explanation including related video clips and also comments
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Capital Addition definition explanation

What is Capital Addition?
The cost involved for adding new assets or bettering existing assets within a business. Capital additions can take the form of adding new parts that could be reasonably expected to increase useful life or potential, and/or adding new assets to increase production.

Capital additions are not to be confused with repairs, which only maintain the life of an asset. Capital additions are expected to increase the life or productivity of an asset. Read more for examples and further explanation including related video clips and also comments
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Qualified Domestic Institutional Investor – QDII definition explanation

What is Qualified Domestic Institutional Investor – QDII?
An institutional investor that has met certain qualifications to invest in securities outside its home country. The most popular QDII program comes from the People’s Republic of China, where the main regulatory body (the China Securities Regulatory Commission) may grant a limited avenue for institutional investors such as banks, funds and investment companies to invest in foreign-based securities.

The overall restrictions on ownership are in place for several reasons, including currency conversion concerns in nations where the currency is not free-floating. Read more for examples and further explanation including related video clips and also comments
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Floating Exchange Rate definition explanation

What is Floating Exchange Rate?
A country’s exchange rate regime where its currency is set by the foreign-exchange market through supply and demand for that particular currency relative to other currencies. Thus, floating exchange rates change freely and are determined by trading in the forex market. This is in contrast to a “”fixed exchange rate”” regime. Read more for examples and further explanation including related video clips and also comments
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BRL (Brazilian Real) definition explanation

What is BRL (Brazilian Real)?
The currency abbreviation symbol for the Brazilian real (BRL), the currency for Brazil. The Brazilian real is made up of 100 centavos and is often presented with the symbol R$. The Brazilian real (plural reais) is regulated by the Central Bank of Brazil’s (BCB) Monetary Policy Committee (COPOM). Read more for examples and further explanation including related video clips and also comments
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