Who is a Fiduciary? A fiduciary is an individual (or business) that pledges to prioritize the beneficiary’s interest by avoiding any conflicts of interest that arise in the duty of good faith, trust, and loyalty towards the beneficiary. Fiduciary Relationships Fiduciary relationships are characterized by the beneficiary’s vulnerability and the fiduciary’s knowledge and control. Fiduciaries…
What is Tapering? Tapering is a term used in finance to describe a reduction of monetary stimulus provided by central authorities to the capital markets. Understanding Tapering In times of weak economic growth or extraordinary stress, such accommodative monetary stimulus may have been implemented in the form of low policy rates, looser regulatory ratios, or…
What is Industry Knowledge? Industry knowledge is a term that describes the accumulation of knowledge and awareness of the intricacies of what is happening in specific industries of interest. Knowledge of an industry from a stakeholder’s perspective can never be overemphasized. Industry knowledge results in improved revenues for a business, enhanced chances of getting hired…
What is Zcash? Zcash is a cryptocurrency built on a decentralized blockchain that uses advanced applied cryptography to provide enhanced security and privacy through shielded addresses. It was originally built on an open-source code similar to Bitcoin. Zcash is mainly focused on anonymity, which is realized through the use of zk-SNARKs, a specific type of…
What is Dogecoin? Dogecoin (DOGE) is an open-source, peer-to-peer cryptocurrency that was made as a parody of the crypto market following the establishment of Bitcoin. It was originally created as a light-hearted joke for crypto enthusiasts, but it quickly exploded to be one of the leading cryptocurrencies in use today. Dogecoin’s brand logo is based…
What is Prime Brokerage? Prime brokerage is a set of services offered by investment banks and other large financial institutions to hedge funds and other investment clients. The clients need such services when borrowing securities or cash for the purpose of netting to allow a specific asset to achieve a higher return. What is Netting?…
What is a Repurchase Agreement (Repo)? A repurchase agreement (“repo”), also known as a sale-and-repurchase agreement, is an agreement involving the sale and subsequent repossession of the same security at a future date at a higher price. In simple terms, it is an exchange of a security (which acts as collateral) for cash. Repurchase agreements…
What is Interest? Interest refers to the cost of borrowing money or the reward for lending money. Typically, banks charge interest on money borrowed on top of the expected repayment of the principal. At the same time, banks also pay interest on depositors’ funds in savings and investment accounts. They do so to entice more…
What is a Jumbo Loan? A jumbo loan is a mortgage used to finance high-valued properties that are above the Federal Housing Finance Agency (FHFA) conforming loan limits. Jumbo loans are also known as non-conforming loans since they exceed the conventional local conforming loan limits as determined by the FHFA enterprises, Fannie Mae and Freddie…
What is a Business Tax Deduction? A business or corporate tax deduction refers to an item that is subtracted from revenue in order to determine a company’s taxable income. Tax deductions are considered a form of tax relief for the company. Companies will file their appropriate tax returns at least annually. These returns will show…
