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A credit crunch is when access to liquidity dries up dramatically in rapid fashion, or becomes less accessible due to a spike in borrowing rates.
Central banks will often step-in to try and curb the lack of liquidity by offering the markets access to cash at lower than market rates, in the event of a crisis.
Perhaps the most famous credit crunch in history occurred in late 2007 and early 2008, when bank balance sheets became highly leveraged overnight due to mark-to-market accounting rules that were applied to the mortgage backed security portfolios on their balance sheets.
Over-leveraged banks lost access to credit markets nearly overnight, which ultimately led to the demise of companies like Bear Sterns and Lehman Brothers.
A corporation is a business entity which has filed articles of incorporation
Most people will be able to contribute to a Roth, but once your income hits certain limits, you may need to find another way
Compounding refers to when your asset generates interest. Put simply, it’s when your earnings generate additional earnings
The Rectangle Top pattern forms when a currency pair price is stuck in a range bound motion, between support/resistance levels
The Symmetrical Triangle Top pattern forms when a currency pair price fails to retest a high or low and forms two trend lines
CTRs are required filings to the Financial Crimes Enforcement Network to report all cash transactions worth over $10,000
Dividend recapitalizations will cause the share price to reduce, largely because the company’s debt-to-equity ratio...
Capital Accumulation is the act of acquiring more assets which will generate more profits or other benefits to the Co.
Accidental Death Benefits are paid only if the cause of death is deemed to be an accident. There are several exclusions
Return on Investment (ROI) is a ratio used to compare the net income of a project or investment to the amount invested