What Is a Unicameral System? A unicameral system is a government with one legislative house or chamber. Unicameral is the Latin word that describes a single-house legislative system. Countries with unicameral governments include Armenia, Bulgaria, Denmark, Hungary, Monaco, Ukraine, Serbia, Turkey, and Sweden. Unicameral systems became more popular during the 20th century and some countries,…
GameStop Corp. (GME) shares fell about 10% during Thursday’s session after two activist investors delivered a letter to the board demanding representation on the board. Hestia Capital Partners and Permit Capital Enterprise note that shareholders have lost 85% of the value of their investment over the past five years and directors have no exposure. The…
What Is Shrinkage? Shrinkage is the loss of inventory that can be attributed to factors such as employee theft, shoplifting, administrative error, vendor fraud, damage, and cashier error. Shrinkage is the difference between recorded inventory on a company’s balance sheet and its actual inventory. This concept is a key problem for retailers, as it results in…
Economic Factors That Affect the Forex Market The Forex market, or foreign exchange market, is the largest and most liquid financial market in the world. Understanding the economic factors that influence this market is crucial for traders, investors, and policymakers alike. These factors can cause fluctuations in currency values, influencing international trade, investment, and economic…
What Is Regulation O? Regulation O is a Federal Reserve regulation that places limits and stipulations on the credit extensions a member bank can offer to its executive officers, principal shareholders, and directors. The regulation is designed to prevent bank directors, trustees, executive officers, or principal shareholders (“insiders”) from benefiting from favorable credit extensions. Key…
During times of hardship, one of the first places many people turn for help is to their loved one and family members. Often people fall into financial difficulties if they experience the sudden loss of a job or are impacted by expensive medical bills. Many well-meaning family members have found themselves sucked into the financial…
What Is a Paydown Factor? A paydown factor is calculated as the principal portion of a monthly loan payment divided by the original principal of the loan. Paydown factors can be calculated monthly and may be included in monthly statements. A paydown factor is also an important metric that is commonly observed when analyzing structured…
What Is the Implied Repo Rate? The implied repo rate is the rate of return that can be earned by simultaneously selling a bond futures or forward contractand then buying that actual bond of equal amount in the cash market using borrowed money. The bond is held until it is delivered into the futures or…
In response to the COVID-19 crisis and impact on markets, the Federal Reserve continues considering lowering interest rates to zero. Since March 2020 the Fed has cut its target for the federal funds rate by a total of 1.5 percentage points, bringing it down to a range of 0% to 0.25%. In 2020, the Mortgage Bankers…