Lehman Brothers
Lehman Brothers – A Fall from Grace Lehman Brothers’ stock was selling at $86 a share in February 2007, giving the company a market capitalization of nearly $60 billion. For the year, the company reported a new record high in net income, over $4 billion. In January 2008, Lehman Brothers was the fourth-largest investment bank...
Funding Liquidity Risk
What is Funding Liquidity Risk? Funding liquidity risk refers to the risk that a company will not be able to meet its short-term financial obligations when due. In other words, funding liquidity risk is the risk that a company will not be able to settle its current outstanding bills. Understanding Liquidity Liquidity is defined as...
Basel I
What is Basel I? Basel I refers to a set of international banking regulations created by the Basel Committee on Bank Supervision (BCBS), which is based in Basel, Switzerland. The committee defines the minimum capital requirements for financial institutions, with the primary goal of minimizing credit risk. Basel I is the first set of regulations...
DRIP
What is a DRIP (Dividend Reinvestment Plan)? A DRIP (Dividend Reinvestment Plan) allows investors to reinvest any dividend earnings they receive back into the stock of the company paying out the dividend. DRIPs give stock market investors who own shares in a particular company the opportunity to receive dividend payments either in the form of...
Value Stocks
What are Value Stocks? Value stocks are stocks that are currently trading at a price lower than their actual intrinsic price. It basically means that the stocks are undervalued, i.e., traded at a price lower than their true value, making them an attractive investment option for investors. The intrinsic value of a stock is its...
