What is Corporate Banking? Corporate banking is a very important division within many large commercial and bulge bracket banks; this team serves as a critical link between the commercial banking group and the capital markets/investment banking teams. Corporate banking teams provide financial services like cash management, payment processing, credit products, and hedging strategies to large…
What is the Williams Act? The Williams Act was enacted in 1968 in response to a series of hostile takeovers by large companies, which posed a risk to shareholders and company executives. The corporate raiders made tender offers for the stocks of target companies, giving very short timelines for acceptance. Such types of hostile takeovers…
What is the Hart-Scott-Rodino Act? The Hart-Scott-Rodino Act, more commonly known as the HSR Act, is a United States antitrust law that is an amendment to the Clayton Antitrust Act. The HSR Act is named after senators Philip Hart, Hugh Scott, and Peter Rodino, who introduced the law in the US Congress. President Gerald Ford…
What is Warranty Expense? Warranty expense is an expense related to the repair, replacement, or compensation to a user for any product defects. In other words, a vendor or manufacturer is committed to repair or replace a sold product during a certain time period if it breaks or does not function properly according to the…
What is the Clayton Antitrust Act? The Clayton Antitrust Act is a United States antitrust law that was enacted in 1914 with the goal of strengthening the Sherman Antitrust Act. After the enactment of the Sherman Act in 1890, regulators found that the act contained certain weaknesses that made it impossible to fully prevent anti-competitive…
What is Volume? The term “volume” in trading refers to the total number of shares that are traded during a given period of time. The volume of trade is measured on all types of financial commodities, including stocks, options contracts, bonds, futures contracts, etc. In trading terminology, when a security is traded for another, it…
What is the Sherman Antitrust Act? The Sherman Antitrust Act is the first antitrust legislation to be passed by the United States Congress. It was introduced during the term of US President Benjamin Harrison. The law was named after Ohio politician, John Sherman, who was an expert in trade and commerce regulation. Sherman crafted the…
What are the Major Risks for Banks? Major risks for banks include credit, operational, market, and liquidity risk. Since banks are exposed to a variety of risks, they have well-constructed risk management infrastructures and are required to follow government regulations. Government agencies, such as the Office of Superintendent of Financial Institutions (OSFI) in Canada, set the…
What is Invested Capital? Invested capital is the investment made by both shareholders and debtholders in a company. When a company needs capital to expand, it can obtain it either by selling stock shares or by issuing bonds. Shareholders are people who have purchased stock in a company and debtholders are those who have purchased…
What are the S&P Sectors? The S&P sectors constitute a method of sorting publicly traded companies into 11 sectors and 24 industry groups. Created by Standard & Poor’s (S&P) and Morgan Stanely Capital International (MSCI), they are also known as the Global Industry Classification Standard (GICS). S&P sorts companies into sectors based on their primary…
