Hammering
What is Hammering? Hammering is a term used for when speculators in a financial market rapidly sell stocks that are perceived to be overvalued. It is done to save potential financial losses. Most commonly, hammering comes after an asteroid event. What is a Speculator, Stock, and an Asteroid Event? A speculator is someone who uses...
Keepwell Agreement
What is a Keepwell Agreement? A keepwell agreement is an arrangement initiated between a parent company and one of its subordinate businesses. The parent company promises that it will provide the subsidiary with all the financing requirements for a specific time period. A keepwell agreement can be referred to as a comfort letter. A keepwell...
Short-Term Debt
What is Short-Term Debt? Short-term debt is defined as debt obligations that are due to be paid either within the next 12-month period or the current fiscal year of a business. Short-term debts are also referred to as current liabilities. They can be seen in the liabilities portion of a company’s balance sheet. Short-term debt...
Homemade Dividends
What are Homemade Dividends? Homemade dividends refer to a form of investment income that investors generate from the sale of a percentage of their equity portfolio. The investor fulfills his cash flow objectives by selling a portion of shares in his portfolio instead of waiting for the traditional dividends. Usually, if a shareholder needs some...
Perpetual Bonds
What are Perpetual Bonds? Perpetual bonds – which are also referred to as perpetuals or just “perps” for short – are bonds with no maturity date. They pay interest to investors in the form of coupon payments, just as with most bonds, but the bond’s principal amount does not come with a set date for...
