DEFICIENCY AGREEMENT
An arrangement in which a party provides a firm with funds to cover any shortfalls arising from capital or cash flow restraints, allowing the company to service its debt. A deficiency agreement will usually have a cumulative limit specified by the lending party. While a deficiency agreement will cover an entire company, it may be specified to protect a smaller aspect of the business. To prevent the project from failing, a deficiency agreement could provide it with enough cash until a revenue stream is established.
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Netting
Settling mutual obligations at the net value of a contract as opposed to its gross dollar value.
Lemming
An investor who follows the crowd in investing without doing any research on his/her investments. Usually, lemming results to significant losses. T ...
Transaction Deposit
Bank deposit that can be immediately withdrawn, transferred, or otherwise transacted by the depositor. Banks are required to maintain reserves on h ...
Value Fund
Value Fund refers to a stock mutual fund that holds stocks, which are believed to be undervalued in price but are likely to be capable of paying di ...
Market Order
Most common way of carrying orders; an instruction or order from a client, via broker or brokerage service, to immediately purchase or sell an inve ...
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