Monetary policy refers to the strategies employed by a nation’s central bank with regard to the amount of money circulating in the economy, and what that money is worth. While the ultimate objective of monetary policy is to achieve long-term economic growthcentral banks may have different stated goals toward this end. In the U.S., the…
What Is Underwriting Risk? Underwriting risk is the risk of loss borne by an underwriter. In insurance, underwriting risk may arise from an inaccurate assessment of the risks associated with writing an insurance policy or from uncontrollable factors. As a result, the insurer’s costs may significantly exceed earned premiums. Key Takeaways Underwriting risk is the…
What Are Accounts Uncollectible? Accounts uncollectible are receivablesloans, or other debts that have virtually no chance of being paid. An account may become uncollectible for many reasons, including the debtor’s bankruptcyan inability to find the debtor, fraud on the part of the debtor, or lack of proper documentation to prove that debt exists. Key Takeaways…
What Are the Top Five Companies Owned by DuPont? E.I. Du Pont De Nemours and Company, commonly referred to as DuPont, is an American conglomerate founded in 1802 as a gunpowder mill by Éleuthère Irénée du Pont. DuPont is one of the world’s largest producers of chemicals and science-based products. Headquartered in Wilmington, Delaware, DuPont…
What Is an Inflation Hedge? An inflation hedge is an investment that is considered to protect the decreased purchasing power of a currency that results from the loss of its value due to rising prices either macro-economically or due to inflation. It typically involves investing in an asset that is expected to maintain or increase…
What Is Supply Chain Finance? Supply chain finance (SCF) is a term describing a set of technology-based solutions that aim to lower financing costs and improve business efficiency for buyers and sellers linked in a sales transaction. SCF methodologies work by automating transactions and tracking invoice approval and settlement processes, from initiation to completion. Under…
If stock splits and buybacks have been a bit of a mystery to you, you’re not alone. While the number of companies initiating stock splits and buybacks ebbs and flows as market conditions change, most long-term investors have been affected by at least one of these events in the past. And if they haven’t, it…
Wayfair Inc. (W) shares rose more than 4% during Thursday’s session despite Loop Capital downgrading the stock to Sell with a price target of $35 per share. Loop Capital analyst Laura Champine believes that slowing growth isn’t reflected in Wayfair’s current share price even after the recent declines. She believes that sales growth will slow…
What Is a Seasoned Issue? A seasoned issue is an issue of additional securities from an established company whose securities already trade in the secondary market. A seasoned issue is also known as a seasoned equity offering or follow-on public offering (FPO). New shares issued by blue-chip companies are considered seasoned issues. Outstanding bonds trading…