What is Voluntary Foreclosure? A voluntary foreclosure refers to a foreclosure initiated by a borrower. The borrower willingly enters a foreclosure because they are unable to make loan payments, or they wish to avoid making any future payments. Possession of the property is transferred from the borrower to the lender. If the borrower struggles to…
What is a Voluntary Lien? A voluntary lien is a lien where the owner of a property consensually grants another party legal claim to the property as security for the repayment of a debt. The debtor voluntarily grants the lien to the lender, and the property acts as collateral. If a debtor defaulted on making…
What is Negative Confirmation? Negative confirmation is a common industry practice for auditors to gather audit evidence from external stakeholders. A negative confirmation is a letter addressed to a debtor, requesting a response if the debtor disagrees with the stated account balance. Confirmation occurs if the third party doesn’t respond, or when a correction is…
What is Multicollinearity? Multicollinearity is a term used in data analytics that describes the occurrence of two exploratory variables in a linear regression model that is found to be correlated through adequate analysis and a predetermined degree of accuracy. The variables are independent and are found to be correlated in some regard. Multicollinearity is studied…
What is a Mutual Company? A mutual company is a type of company wherein the ownership is held by the depositors, customers, or policyholders of an institution. A mutual company’s structure is different from other types of companies like a privately-held organization or public company. Mutual companies distribute income among its members/owners, generally directly within…
What is the Nasdaq Global Select Market? The Global Select Market includes companies with the largest market capitalization within the Nasdaq Composite Index and comprises 1,200 stocks. It is one of the three tiers within the Nasdaq Composite Index, along with Global Market and Capital Market. In order to be part of the Global Select…
What is the Nasdaq Capital Market? The Nasdaq Capital Market is one of the three tiers within the Nasdaq Composite Index. The Capital Market tier is an equity market for companies with the smallest levels of market capitalization within the Nasdaq Composite Index. Market capitalization refers to the market value of a publicly-traded company’s outstanding…
What is the Named Perils Insurance Policy? The Named Perils Insurance Policy is a home insurance policy that explicitly provides coverage for losses incurred or events listed on the policy. The insurance policy comes in two forms – basic and broad. Named perils are the opposite form of open perils, which will provide coverage for…
What is the NEX Trading Platform? The NEX trading platform – typically referred to as the NEX Exchange – is a subset of the TSX Venture Exchange in Canada. Companies that do not qualify to be listed on the TSX Venture Exchange (because of its extensive and ongoing standards for listing) can trade on the…
What is the National Automated Clearing House Association (NACHA)? The National Automated Clearing House Association (NACHA) is in charge of maintaining everything that relates to administering, developing, and governing the ACH Network. The Automated Clearing House (ACH) Network manages electronic funds transfers for the United States through a computer-based system. Understanding the National Automated Clearing…
