Covenant-Lite Loan Definition

What Is a Covenant-Lite Loan? A covenant-lite loan is a type of financing that is issued with fewer restrictions on the borrower and fewer protections for the lender. By contrast, traditional loans generally have protective covenants built into the contract for the safety of the lender, including financial maintenance tests that measure the debt-service capabilities of…

What Is a Merchant Account? How Accounts and Processing Works

What Is a Merchant Account? A merchant account is a type of business bank account that allows a business to accept and process electronic payment card transactions. Merchant accounts require a business to partner with a merchant acquiring bank who facilitates all communications in an electronic payment transaction. Merchant account relationships are essential for online…

On-Us Item

What Is an On-Us Item? An on-us item is a check or draft that is presented to the bank where the check writer has the funds on deposit, as opposed to the depositor’s bank (although in some cases both check writer and depositor may happen to use the same bank). The check can then be…

McDonald’s Beat Pushes Stock Into Overbought Territory

McDonald’s Corporation (MCD) beat estimates when it released its latest earnings report on Jan. 29. This snapped a three-quarter losing streak. The stock ended last week above its semiannual pivot at $216.19, with its weekly risky level at $222.53. McDonald’s has survived the adverse effects of the spreading of the coronavirus. Only 3% of its…

Coca-Cola Beat Earnings, but Shares Have Gone Parabolic

The Coca-Cola Company (IS) reported better-then-expected earnings before the opening bell on Jan. 30. The stock has been trading higher on the news and set an all-time intraday high of $60.07 on Friday, Feb. 14. My call is to reduce holdings with the stock between its weekly and monthly risky levels at $60.07 and $60.43,…