Debt Incurrence Test

To gauge the financial stability of a company, it is important to understand its debt incurrence test. The debt incurrence test measures how much debt a company can take on before becoming financially unstable. This is an important measure for companies looking to expand or merge with another company. By …

What Is a Circuit Breaker in Trading?

If you’re familiar with the stock market, then you’ve probably heard of circuit breakers. But what are they, and what do they do? A circuit breaker is a mechanism used by exchanges to prevent panic selling. When the stock market falls too quickly, a circuit breaker will halt trading for …

What are Exchange-Traded Funds (ETFs)?

If you’re looking for a low-cost, diversified way to invest your money, you should consider exchange-traded funds (ETFs). ETFs are a type of fund that trades on an exchange like stocks. This means that you can buy and sell them throughout the day. ETFs offer a number of advantages over …

Interest Rate Floor Tax Treatment, Accounting Entries

Debt instruments may come with a fixed or variable interest rate. With the former, the lender charges a fixed interest rate on the loaned amount. However, variable interest instruments may involve complex calculations. With these instruments, the lender adds a margin to a benchmark interest rate or index to calculate …

The Average Stock Market Return: What You Need to Know

Do you invest in the stock market? If so, it’s important to know what the average stock market return is. This will help you make informed investment decisions and ensure that your portfolio is generating adequate returns. In this blog post, we will discuss the historical average stock market return …

Volatility Timing: Does It Work?

Volatility of an asset is the measure of how much its price changes over time. The higher the volatility, the greater the price swings. There are two types of volatility: historical and implied. Historical volatility is a measure of how much an asset’s price has fluctuated in the past. Implied …

Trading Halt: What You Need to Know

A trading halt is a temporary suspension of trading on a security or securities. Trading halts can be issued by exchanges, the SEC, or FINRA. They are put into place to protect investors and maintain fair and orderly markets. In this blog post, we will discuss the different reasons why …

What Is Overdraft Protection and Do You Need It?

You may have heard of overdraft protection before, but you’re not quite sure what it is. In essence, overdraft protection is a service that your bank can offer that will protect you from having insufficient funds in your account. This can be a great service to have if you tend …