What is an Equated Monthly Installment (EMI)? An equated monthly installment (EMI) is a type of payment made by borrowers to lenders on a monthly basis in a fixed amount. EMIs include both the interest and principal amounts. After a certain number of EMIs are made, the loan will be fully paid off. Understanding Equated…
What is Equilibrium? Equilibrium, in its most basic sense, means stability, a state of rest, or a state of balance. It takes the same foundational concept in microeconomics. In microeconomics, equilibrium is defined as the condition at which two comparable economic variables are in complete balance, i.e., both variables are equal. More specifically, economic equilibrium…
What are Equity-Linked Securities (ELKS)? Equity-linked securities (ELKS) are a type of debt instrument with unfixed payments that are linked to an underlying equity. They deliver the return of common shares in certain circumstances. ELKS are usually created as bonds by issuers as a capital financing method in private markets, which means investors cannot trade…
What is Errors and Omission Insurance (E&O)? Errors and Omission (E&O) insurance protects companies and employees from claims of negligent actions or inadequate work from clients. E&O insurance is a type of professional liability insurance and is typically required by people who provide professional services to their clients. Understanding Errors and Omission Insurance It is…
What is the European Economic and Monetary Union (EMU)? The European Economic and Monetary Union (EMU) integrates the economies of the 19 European Union (EU) member states through a group of economic and monetary policies. All the EU states are in the economic union, but not all are in the monetary union, i.e., Bulgaria, Poland,…
What is the EV/2P Ratio? The EV/2P ratio is a ratio (also known as a multiple) that is particularly used to value oil and gas companies in the energy sector. It is calculated by dividing a company’s enterprise value (EV) by its proven and probable (2P) reserves. Analysts can understand how a company’s reserve resources…
What is a Holder of Record? Holder of Record is a term that defines an individual or entity that possesses the rights, benefits, and responsibilities associated with owning a financial security. While the term holder of record may be applied to ownership of any financial security – including bonds, futures, or derivatives contracts – the…
What is a Highly Leveraged Transaction (HLT)? A highly leveraged transaction (HLT) refers to a bank loan granted to a company already carrying an exceptionally large amount of debt. In the United States, the Office of the Comptroller of the Currency defines highly leveraged transactions very simply as bank loans to a company with a…
What is a Quick-Rinse Bankruptcy (Fast Bankruptcy)? A Quick-Rinse Bankruptcy (Fast Bankruptcy) is just what the name implies – a rapidly executed bankruptcy case. An individual may engage in a quick-rinse bankruptcy, but it is much more commonly a corporate bankruptcy proceeding. In the United States, quick-rinse deals are part of a Chapter 11 bankruptcy…
What is the Iranian Rial (IRR)? The Iranian Rial is the official legal currency of the Islamic Republic of Iran. It is subdivided into 100 dinars; however, dinar denominations of the Iranian currency are not typically used due to the extremely low value of one Iranian rial. Unlike most other currencies, there is no official…
