What is the Anti-Dilution Adjustment Clause? The anti-dilution adjustment clause is a provision contained in a security or merger agreement. The anti-dilution clause provides current investors with the right to maintain their ownership percentage in the company by purchasing a proportionate number of new shares at a future date when securities are issued. …
What is a Non-Conforming Loan? Non-conforming loans are loans that don’t check all the boxes necessary for the bank to fund them. There is a long list of potential reasons why a non-conforming loan may not meet all the traditional loan criteria, including the following: Insufficient credit With mortgage loans, the loan amount is higher…
What is a Hard Money Loan? A hard money loan is a type of financing that a borrower receives with physical property used as loan collateral. The loan – most often issued by private investors or non-bank financial companies – is typically used to provide relatively short-term financing. Hard money lenders expect to see their…
How to Add a Secondary Axis in Excel? The article below provides a step-by-step guide on how to add a secondary axis to charts in Microsoft Excel. A secondary vertical axis gives us more versatility with regards to data visualization and also provides us with the ability to plot multiple data series on the same…
What is a 363 Sale? A 363 Sale refers to the sale of an organization’s assets under Section 363 of the US Bankruptcy Code. The sale enables debtors to fulfill their obligations to creditors by selling their assets and using the funds collected to settle their debts. The purchasers of the assets benefit from the…
What is a Bailout Takeover? A bailout takeover refers to a scenario where the government or a financially stable company takes over control of a weak company with the goal of helping the latter regain its financial strength. The acquiring entity takes over the weak company, usually by means of purchasing a controlling amount of…
What is Covered Interest Rate Parity (CIRP)? Covered interest rate parity (CIRP) is a theoretical financial condition that defines the relationship between interest rates and the spot and forward currency rates of two countries. It establishes the fact that there is no opportunity for arbitrage using forward contracts, which are often used to make loose…
What is the Uncovered Interest Rate Parity (UIRP)? The Uncovered Interest Rate Parity (UIRP) is a financial theory that postulates that the difference in the nominal interest rates between two countries is equal to the relative changes in the foreign exchange rate over the same time period. It is quite similar to an economic theory…
What is FX Carry Trade? FX carry trade, also known as currency carry trade, is a financial strategy whereby the currency with the higher interest rate is used to fund trade with a low yielding currency. Using the FX carry trade strategy, a trader aims to capture the benefits of risk-free profit-making by using the…
Asset Purchase vs Stock Purchase When buying or selling a business, the owners and investors have a choice: the transaction can be a purchase and sale of assets or a purchase and sale of common stock. The buyer of the assets or stock (the “Acquirer”) and the seller of the business (the “Target”) can have…
