Leveraged Loan
What is a Leveraged Loan? A leveraged loan is a loan that is extended to businesses that (1) already hold short or long-term debt on their books or (2) with a poor credit rating/history. Leveraged loans are significantly riskier than traditional loans, and, as such, lenders typically demand a higher interest rate to reflect the...
Flash Crashes
What are Flash Crashes? Flash crashes refer to a scenario where the price of bonds, stocks, or commodities suddenly plunges but then quickly recovers. It is called a flash, as the market will crash suddenly but then prices will almost immediately rebound. At the end of the day, the net result appears almost as though...
Direct Listing
What is a Direct Listing? A direct listing is a process by which a company can go public by selling existing shares instead of offering new ones. Companies that choose to go public using the direct listing method usually have different goals than those that use an initial public offering (IPO). Direct Listing vs. Initial...
Simple Capital Structure
What is a Simple Capital Structure? A simple capital structure is a capital structure that contains no potentially dilutive securities. In other words, a simple capital structure consists only of common stock, nonconvertible debt, and nonconvertible preferred stock. Types of Capital Structure Simple capital structure Complex capital structure As outlined above, a simple capital structure...
Online Payment Companies
What are Online Payment Companies? Online payment companies are responsible for handling online or internet-based methods of payment. The online payment systems allow the seller to accept payments and the buyer to send payments over the internet. Examples of online payment companies include PayPal, Alipay, WeChat Pay, Paytm, Google Pay, and Apple Pay. Online Payment...
