What is Evergreen Funding? Evergreen funding describes a type of business funding that is gradual and ongoing, as opposed to a one-time infusion of capital. The phrase originated in the United Kingdom. Evergreen funding is typically spoken of in relation to the funding a business receives from venture capital firms. Venture capital firms may provide…
What is an Evergreen Contract? An evergreen contract renews itself after the deadline or expiration date. It will continue to renew itself until both parties agree to terminate the notice. Evergreen contracts are used for the following: Rental leases Purchase contracts Service agreements Dividend reinvestment plans Guaranteed investment certificates Healthcare plans Magazines subscriptions Understanding Evergreen…
What is a Non-Exempt Employee? A non-exempt employee refers to a worker who is entitled to overtime pay of at least 1.5 times their regular pay rate, in accordance with the U.S. Fair Labor Standards Act. As opposed to exempt employees, non-exempt employees can be paid an hourly wage and must be paid at least…
What is a Distribution Waterfall? A distribution waterfall is a popular term in equity investing that refers to the way in which capital gains of a fund are allocated between the participants in an investment, typically the limited partners (LPs) and the general partner (GP). The capital of limited partners is managed by the general…
What is a Merger vs Acquisition? Mergers and acquisitions both refer to the joining of two or more business entities that entail a restructuring of their corporate order. They are aimed at achieving better synergies within the organization in order to increase their competence and efficiency. However, there are key differences between a merger vs….
What is the Durbin Watson Statistic? The Durbin Watson statistic is a test statistic to detect autocorrelation in the residuals from a regression analysis. It is named after professor James Durbin, a British statistician and econometrician, and Geoffrey Stuart Watson, an Australian statistician. What is Autocorrelation? Serial correlation, also called autocorrelation, refers to the degree…
What is the Durable Goods Orders Report? The durable goods orders report is a monthly report released by the U.S. government. The report encapsulates the sales of durable goods over the preceding month. It is keenly followed by financial analysts and economists as the purchases require large amounts of funds and are directly proportional to…
What is Automatic Bill Payment? Automatic bill payments are recurring money transfers authorized by a customer to pay certain vendors on a regular basis. The payments are often scheduled by users to pay various types of bills on a monthly basis, such as mortgage, credit card bills, installment loans, cell phone bills, electricity and water…
What are Fixed Income Portfolio Mandates? Fixed-income portfolio mandates refer to the set of rules that should be followed while investing in a variety of fixed-income securities. A fixed-income security is one that gives the investor a fixed amount of interest payment every year until maturity. Some examples of fixed-income securities include certificates of deposit,…
