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Debt financing occurs when a company borrows money or secures financing through loans, with the obligation to repay the money (typically with interest).
Generally, a corporation will engage in debt financing by selling bonds in the marketplace or to private investors, or with promissory notes or commercial paper. Generally the terms of the bond or the loan will have the company commit as collateral assets of the business, such as real estate, cash on hand, or fixed assets.
In a low interest rate environment, a company may opt for debt financing versus equity financing, since they can secure loans on the cheap.
Futures markets are the formal exchanges on which futures contracts are bought and sold for financial products
“Load” mutual funds are those which have a fee structure that includes a front-end or back-end sales charge
Bonds can be traded on exchanges before their maturity date, but the price might fluctuate based on the current...
Yes, you can pay more than nominal value for a bond. And this is part of what’s called the interest rate risk of bonds
Elliot Wave Theory incorporates the natural cycles of nature in an attempt to explain and predict future prices of stocks
It is believed that the asset allocation decision is responsible for a majority of an investor’s returns (direct correlation)
Book value can apply to an individual asset and tends to be straightforward. It is an asset's value on a balance sheet
A merger is the voluntary melding of two companies into one, when the owners believe the change is mutually beneficial
Long-term debt refers to the duration of a liability/amount owed, and to qualify it must be due at least 12 months out
A+/A1 is a few ratings down from the top, which is AAA/Aaa. This can be somewhat misleading or confusing to investors