What is a Subprime Loan? A subprime loan is a loan offered to individuals at an interest rate above prime, who do not qualify for conventional loans. Such individuals have low income, limited credit history, poor quality collateral, or poor credit. The subprime option is common in many different types of loans, including auto loans…
What is Social Responsibility? Social responsibility refers to the business practices of engaging in ethical behavior and in taking actions aimed at benefiting the society that the business operates in. Corporate social responsibility has become an increasingly important factor for companies to consider since the turn of the century. It is partly because millennials –…
What is Data Analytics? Data analytics is the science of analyzing raw datasets in order to derive a conclusion regarding the information they hold. It enables us to discover patterns in the raw data and draw valuable information from them. Data analytics processes and techniques may use applications incorporating machine learning algorithms, simulation, and automated…
What is Data Anonymization? Data anonymization refers to the method of preserving private or confidential information by deleting or encoding identifiers that link individuals to the stored data. It is done to protect the private activity of an individual or a corporation while preserving the credibility of the data collected and exchanged. Data anonymization is…
What is a Subordination Agreement? A Subordination Agreement is a narrow form of Intercreditor Agreement that focuses on the priority of two or more creditors’ debts and claims concerning a borrower with multiple loans and common security interest. It is also known as a Priority Agreement. The contract governs the lien position among creditors with…
What is a Stockbroker? A stockbroker is a regulated representative of the financial market who enables the buying and selling of securities on behalf of financial institutions, investor clients, and firms. A stockbroker is also called a registered representative or a broker. The trading or purchase or sale of stocks on the national stock exchanges…
What is Historical Cost? In accounting, the historical cost of an asset refers to its purchase price or its original monetary value. Based on the historical cost principle, the transactions of a business tend to be recorded at their historical costs. The concept is in conjunction with the cost principle, which emphasizes that assets, equity…
What is Historical Volatility (HV)? Historical volatility, or HV, is a statistical indicator that measures the distribution of returns for a specific security or market index over a specified period. The historical volatility of a security or other financial instrument in a given period is estimated by finding the average deviation of the instrument from…
What is a Portfolio Company? A portfolio company is a company (public or private) that a venture capital firm, buyout firm, or holding company owns equity. In other words, companies that private equity firms hold an interest in are considered portfolio companies. Investing in a portfolio company aims to increase its value and earn a…
What is Environmental Due Diligence? Environmental due diligence is a systematic procedure that evaluates a property or land for possible environmental contamination risks, such as groundwater or soil contamination. The Environmental Protection Agency (EPA) provides standards for due diligence. Environmental Professionals (EPs) shall decide the degree and form of assessment warranted, which may differ depending…
