EDU Articles
Learn about investing, trading, retirement, banking, personal finance and more.
What is Accrued Interest?
Accrued Interest applies to a bond or loan, accounting for the interest that is calculated per diem for the time between payments.
Accrued Interest is the amount of interest that has "built up" between the last payment and the present, with regards to bonds and loans. If a bond is sold from one person to another, and the corporation or municipality that issued the bond pays out an interest payment at regular intervals, the sale price will have to factor-in the "accrued interest" since the last distribution, and the buyer will have to pay the seller for the accrued interest due while the latter held the bond.
When the next interest payment comes in, the new owner of the bond nets the interest from the time since he acquired it. In terms of debt and loans, of course, accrued interest can mean the total amount of interest payments due to the lender since the last payment.
Accrual accounting is used by corporations for their balance sheets. It also plays a role in investments such as CMOs, where debts are pooled in tranches.
What is a bear market?
Bear markets are loosely defined as periods when the market experiences declines in magnitude of 20% or more in stock trading
What Is Market Capitalization?
Market capitalization is a measure of a company’s size, in terms of the value of its total outstanding shares
Should I Trust the Opinions Expressed by Various Financial Analysts?
Studies suggest that it is not wise to put too much faith in any market analyst or commentator
Can I Take a Loan From my Cash-Balance Plan?
The IRS permits such loans, but it is rare to find a plan that allows it. In the vast majority of cases, you cannot
What kind of hedge funds exist?
Hedge funds can employ many strategies and focus on virtually any kind of investing style. As of 2016, the are over 12,000
Which is Better for Me: a Roth or Traditional IRA?
The choice between a Roth IRA and a Traditional IRA depends on available discretionary income and financial situation
What is the Dividend Discount Model?
The Dividend Discount Model (DDM) is a method for valuing a stock, that looks at expected future dividend payouts
What is a Mortgage Forbearance Agreement?
The mortgage forbearance agreement is designed to be a temporary solution to an unforeseen issue with the borrower
What is an Account Freeze?
An account freeze stops all pending transactions and does not honor new transaction requests for a financial repository
What is Form 1040-X?
Form 1040-X is the amendment form used to change previously submitted information from the 1040, 1040-A, or 1040-EZ