What Is Corporate Debt Restructuring? Corporate debt restructuring is the reorganization of a distressed company’s outstanding obligations to restore its liquidity and keep it in business. It is often achieved by way of negotiation between distressed companies and their creditorssuch as banks and other financial institutions, by reducing the total amount of debt the company has,…
What Is a Merger of Equals? A merger of equals is when two firms of about the same size come together to form a single new company. In a merger of equals, shareholders from both firms surrender their shares and receive securities issued by the new company. Companies may merge to gain market share or…
What Is Hindsight Bias? Hindsight bias is a psychological phenomenon that allows people to convince themselves after an event that they accurately predicted it before it happened. This can lead people to conclude that they can accurately predict other events. Hindsight bias is studied in behavioral economics because it is a common failing of individual…
What Is Asset Specificity? In economics, asset specificity is the degree to which a thing of value, or even a person of value, can be readily adapted for other purposes. A thing with high specificity is useful only for certain tasks or in certain circumstances. An asset with low specificity is a more flexible resource,…
What Is Position Sizing? Position sizing refers to the number of units invested in a particular security by an investor or trader. An investor’s account size and risk tolerance should be taken into account when determining appropriate position sizing. Understanding Position Sizing Position sizing refers to the size of a position within a particular portfolio,…
More funds for small businesses loan program expected soon Fed report says companies vulnerable to coronavirus shocks Small businesses provide 47.3% of private employment During yesterday’s Task Force briefing, President Trump said loans worth $70 billion of the $350 billion coronavirus small business loan program have been processed. He will also ask Congress for an…
What Is a Syndicate? A syndicate is a temporary alliance of businesses that joins together to manage a large transaction, which would be difficult, or impossible, to effect individually. Syndication makes it easy for companies to pool their resources and share risks, as when a group of investment banks works together to bring a new…
Several career paths are available to individuals seeking to become an investment professional. The traditional way to become licensed to trade or invest in securities (like stocks and bonds) is to pursue a test known as the Series 7. Administered by the Financial Industry Regulatory Authority (FINRA), the Series 7 is considered one of the…
Experience Mitch Strohm is a freelance writer and digital marketing consultant. He’s been covering the personal finance and credit card industry for more than 12 years. Previously, Mitch managed a number of niche personal finance focused sites, where he oversaw a team of experts to develop credit card, loan, and savings content. He has also…