What is the Main Street Lending Program? The main street loan program was run by the Federal Reserve System (Fed) to support small and medium-sized businesses and nonprofit employers impacted by the COVID-19 pandemic. The program made $600 billion in loan facilities available to employers, who had to be in good financial health before the…
What are over-the-counter (OTC) products? Over-the-counter (OTC) is the process of trading securities through a broker network as opposed to a centralized exchange like the New York Stock Exchange. Over-the-counter transactions may relate to shares, bonds and derivativeswhich are financial contracts that derive their value from an underlying asset such as a commodity. Where companies…
What are staggered reserves? Lagged reserves are a method for calculating the required level of bank reserves on hand or with a Federal Reserve Bank. The amount of the reserve requirement is based on the value of the bank’s assets submission of the application accounts for the previous two weeks. Key points to remember Lagged…
What Is Ethereum? At its core, Ethereum is a decentralized global software platform powered by blockchain technology. It is most commonly known for its native cryptocurrency, ether, or ETH. Ethereum can be used by anyone to create any secured digital technology. It has a token designed for use in the blockchain network, but it can…
What is a Premium Put Convertible? A premium convertible put is a type of bond that combines the characteristics of put obligations with the attributes of Convertible links. Like a put bond, a convertible premium put can be exchanged for cash at the discretion of the bondholder. Like a convertible bond, a convertible put premium…
It’s been a tough week for token stocks. On Monday, Nvidia had warned its revenue would be much lower than its forecast as gaming revenue slowed. Then Micron cut its current quarter revenue and warned of free movement of capital for the quarter as customer inventories pile up amid weaker demand for chips used in…
What is an Associate in Excess Lines Insurance (ASLI)? Associate in Surplus Lines Insurance (ASLI) is a professional designation for agents, brokers, risk managers, underwriters, claims professionals, regulators and other professionals who work in the excess lines insurance industry. The institutes, an industry education and accreditation body, awards the designation. Key points to remember Associate…
What is Fractional Reserve Banking? Fractional-reserve banking is a system in which only a fraction of the Bank deposits are backed by real cash and available for withdrawal. This is done to theoretically expand the economy by freeing up capital for lending. Today, most financial systems in economies use fractional-reserve banking. Key points to remember…
What is conspicuous consumption? Conspicuous consumption is the purchase of goods or services for the specific purpose of displaying wealth. Conspicuous consumption is a way of showing one’s social status, especially when publicly displayed goods and services are too expensive for other members of a person’s class. This type of consumption is usually associated with…