MEZZANINE FINANCING
A non-conventional funding which is normally used to fund acquisitions and buyouts. Hybrid of debt and equity funding, it is basically debt capital that provides the lender the right to convert into an ownership or equity interest should the loan is not fully paid on time. It is composed of equity-based options (e.g., warrants) and lower priority debt. Banks and venture capital companies provide this financing.
Since this is normally given very fast with low due diligence on the lender, and has little or no collateral for the borrower, this is strongly priced which the lender aims to generate a 20-30% profit.
POPULAR TERMS
Piotroski Score
A discrete score between 0-9 which reflects nine criteria used to determine the strength of a firm's financial position. The Piotroski score is ...
Jitney
An illegal scheme where two brokers trade a stock back and forth in order to raise the trading volume and rack up commissions
An ...
Hedge
A strategy used to protect an investment against loss. A hedge often consists of taking an offsetting position in a related security, such as a fut ...
Preference Shares
These are company stocks with dividends that are paid to the shareholders before common stock dividends are paid out. In case the company goes bank ...
Channel Check
Independent stock analysis on a firm based on the information given to third parties. These are most frequently conducted through conversations or ...
POPULAR ARTICLE
SEE FOREX TUTORIAL
Ethical Investing: Environmentally-Conscious Investing
Environmentalist or not, as an investor, you care so much about your surroundings. Hence, you invest in companies that can reduce their negative im ...
Health Savings Account: Eligibility
We discussed the fundamental information regarding HSAs. Now, we shall tackle the qualifications for opening an HSA.
Any person can utili ...
A Primer on Retirement Planning
Every person dreams of enjoying their lives once they reach their golden years. Most people desire living in a house with a beach front view or a m ...
Retirement Planning: Creating a Nest Egg
Last time, we discuss the different income sources for building a retirement fund. We shall now tackle the ways to create a retirement nest egg.
How Much Does a Home Remodeling Cost?
If your house can handle a renovation, the next thing you need to find out is the cost of a home remodeling.
You may nee ...
ECONOMIC CALENDAR
| Time | Country | Indices | Period |
|---|---|---|---|
| 05:02 | Trade Balance | Nov | |
| 07:00 | Economy Watchers Survey | Nov | |
| 09:00 | Industrial Production | Oct | |
| 10:00 | SECO Consumer Confidence | Nov | |
| 11:30 | Sentix Investor Confidence | Dec | |
| 01:50 | M2 Money Supply + CD | Nov | |
| 02:01 | BRC Retail Sales Monitor | Nov | |
| 02:30 | NAB Business Confidence | Nov | |
| 05:30 | RBA Interest Rate Decision | Dec |
