In yet the latest shake up in the online brokerage industry, E*TRADE, one of the original internet brokers, is being sold to legacy Wall Street bank Morgan Stanley in an all-stock deal…
What Is Bootstrapping? What It Means and How It’s Used in Investing
What Is Bootstrapping? Bootstrapping describes a situation in which an entrepreneur starts a company with little capital, relying on money other than outside investments. An individual is said to be bootstrapping when…
Loan Constant: Definition, Calculation Formula, Example
What Is a Loan Constant? A loan constant is a percentage that shows the annual debt service on a loan compared to its total principal value. The calculation for a loan constant…
Definition, How It Works, Example
What Is Loan Servicing? Loan servicing refers to the administrative aspects of a loan from the time the proceeds are dispersed to the borrower until the loan is paid off. Loan servicing includes…
Domino’s Stock Breaks Out After Strong Q4 Earnings
Domino’s Pizza, Inc. (DPZ) shares rose more than 25% during Thursday’s session after the company reported better-than-expected fourth quarter financial results. Revenue rose 6.5% to $1.15 billion, beating consensus estimates by $20…
Definition, How Lenders Use It, and Calculation
What Is the Rule of 78? The Rule of 78 is a method used by some lenders to calculate interest charges on a loan. The Rule of 78 requires the borrower to…
Morgan Stanley’s E*TRADE Deal Could Signal Long-Term Top
Morgan Stanley (MS) will buy E*TRADE Financial Corporation (ETFC) for around $13 billion in stock, adding over 5.2 million accounts to the company’s customer base of 3 million. The firm will now handle…
Dow Theory Could Signal Broad-Based Decline
The Dow Jones Transportation Average has failed to break out with major benchmarks, setting off a bearish divergence originally described by Dow Theory more than 100 years ago. This “non-confirmation” could be significant…
Are Social Security Payments Included in the U.S. GDP?
No, Social Security payments are not included in the U.S. definition of the gross domestic product (GDP). Social Security payments are transfer payments, which are not included. They are, however, counted as…