The financial services industry is one of the most important parts of the U.S. economy. The sector includes insurance, investment, and real estate firms, and, more importantly, banks. According to the Federal Reservethere are 1,836 banks in the United States alone, ranging from nationally chartered to state-chartered firms. One of those names is Wells Fargo,…
What Is Form NR6? The NR6 Form is a Canada Revenue Agency (CRA) document that a non-resident who has received a rent or timber royalty payment in Canada must submit to the agency to declare their intent to file an income tax return for that year. The NR6 is often used in conjunction with Form…
What Are Golden Handcuffs? Golden handcuffs are a collection of financial incentives that are intended to encourage employees to remain with a company for a stipulated period of time. Golden handcuffs are offered by employers to existing key employees as a means of holding onto them as well as to increase employee retention rates. Golden…
T-Mobile US, Inc. (TMUS) completed its merger with Sprint Corporation on April 1, ending the long saga that started on April 29, 2018, when the hook-up was first announced. The U.S. Department of Justice (DoJ) and Federal Communications Commission (FCC) dropped their objections in 2019, but the final deal was delayed when a team of…
What Is Commercial Credit? Commercial credit is a pre-approved amount of money issued by a bank to a company that can be accessed by the borrowing company at any time to help meet various financial obligations. Commercial credit is commonly used to fund common day-to-day operations and is often paid back once funds become available….
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,…