What is Inflation Targeting? Inflation targeting is a common practice among central banks globally that aims to influence the level of prices in an economy through the use of several monetary policy tools. Creation of the Inflation-Targeting Framework The inflation-targeting framework currently implemented among most central banks was developed in New Zealand in 1988-89 when...
What is a Funding Request? The funding request section of a business plan is an outline of the future funding requirements of a company. Usually, the time scale is limited to the next five years, especially in cases of startups with an uncertain future. Information needs to be provided about the company’s future financial plans,...
What is the Advance-Decline (A/D) Line? The Advance-Decline (A/D) line is an indicator that is utilized by investors who want to measure the number of individual stocks. The A/D line can determine whether the stocks are participating in either a market fall or market rise. Understanding Advance-Decline (A/D) Lines To be explained further, the A/D...
What is a Corporate Action? A corporate action is a move – enacted by a publicly-traded company – that encourages or furthers processes that have a direct impact on whatever assets the company issues. In other words, any actions (conducted by a company) that materially alter or otherwise change the company can be considered corporate...
What is a Corporate Reorganization Clause? A corporate reorganization clause is a provision contained in a company’s charter. The provision guides mergers and acquisitions, changes in assets or ownership structure, as well as changes in corporate control. The most common forms of corporate reorganization include mergers and acquisitions, financial restructuring, corporate buyouts, and divestitures. While many companies...