What Is the Double Irish With a Dutch Sandwich? The double Irish with a Dutch sandwich is a tax avoidance technique employed by certain large corporations, involving the use of a combination of Irish and Dutch subsidiary companies to shift profits to low or no-tax jurisdictions. The technique has made it possible for certain corporations…
What Are Industrial Revenue Bonds—IRBs? Industrial revenue bonds (IRB) are municipal debt securities issued by a government agency on behalf of a private sector company and intended to build or acquire factories or other heavy equipment and tools. IRBs were formerly called Industrial Development Bonds (IDB). key takeaways Industrial revenue bonds (IRBs) are a type…
What Is the Win/Loss Ratio? The win/loss ratio is the ratio of the total number of winning trades to the number of losing trades. It does not take into account how much was won or lost, but simply if they were winners or losers. The Formula for Win/Loss Ratio Is Win/loss ratio = Wins Losses…
The quantification of credit risk is the process of assigning measurable and comparable numbers to the likelihood of default risk and the concept is a major frontier in modern finance. The factors that affect credit risk range from borrower-specific criteria to market-wide considerations. The idea is that liabilities can be objectively valued and predicted to…
What Is Subjective Probability? Subjective probability is a type of probability derived from an individual’s personal judgment or own experience about whether a specific outcome is likely to occur. It contains no formal calculations and only reflects the subject’s opinions and past experience. An example of subjective probability is a “gut instinct” when making a…
What Was Black Wednesday? Black Wednesday refers to September 16, 1992, when a collapse in the pound sterling forced Britain to withdraw from the European Exchange Rate Mechanism (ERM). The U.K. was forced out of the ERM because it could not prevent the value of the pound from falling below the lower limit specified by…
Credit scores can be improved in many ways, but paying utility bills on time is usually not enough to make a meaningful difference. While gas, electric, and water are common utility bills that people pay, the information is not reported to the credit agencies and does not appear on an individual’s credit report. On the…
Consider the scenario of buying a used car—you can take a few test drives, carefully examine the exterior and interior, and get the assistance of trained mechanics. Despite all due diligencethe reality of the used car—whether it’s a good buy or a lemon—will be evident only after you purchase it and ride it for some…
What Is a Pitchbook? A pitchbook is a sales document created by an investment bank or firm that details the main attributes of the firm, which is then used by the firm’s sales force to help sell products and services and generate new clients. Pitchbooks are helpful guides for the sales force to remember important…