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Also known as the debt service ratio, The interest coverage ratio is a measure of how many times a company can pay the interest owed on its debt with EBIT.
To calculate it, you simply divide EBIT (earnings before interest and taxes) by interest expense. A company with a low interest coverage ratio means it has fewer earnings available to make interest payments, which can imply solvency issues and could mean a company would be at risk if interest rates go up.
Fiscal policy is related to monetary policy, in that they are both aimed to either boost an economy or temper growth
A BitLicense is an informal name for the New York state license required of cryptocurrency businesses to operate within the state
The Broadening Wedge Ascending pattern forms when a currency pair price progressively makes higher highs and higher lows
The Falling Wedge pattern forms when prices appear to spiral downward, with lower lows and lower highs
The Federal Trade Commission (FTC) was originally created to encourage market competition and to protect consumers
Options can be a valuable tool in portfolio management, but investors should be well-versed in how options work
SEP IRA investment choices are determined by the financial institution at which your SEP IRA is established
Cash Balance plans are Defined Benefit plans, but are not much like Pensions, or other types of retirement plans
The prime rate is the lowest interest rate that banks will charge on loans at a given time, based on the Fed Funds Rate
‘Buy to Cover’ is a term that applies when an investor buys shares of a security that they had previously sold short