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
Collusion
Non-competitive secret agreement taking place between two or more entities. They seek to disrupt the market’s equilibrium by changing the pri ...
Trade Credit
Agreement in which a client can defer the payment for products and/or services acquired from a supplier. Upon the delivery of the goods, the trade ...
Secondary Stock
Secondary Stocks are those stocks which are perceived as those that carry higher risks compared to blue chips due to the small market capitalizatio ...
Maturity Date
Date on which the principal amount of a acceptance bond, draft, note, or other debt instrument is due for settlement and to be repaid to the invest ...
Group of 30 - G30
Consultative group comprised of academics and financiers that aims to facilitate understanding of financial and economic matters in private and pub ...
POPULAR ARTICLE
SEE FOREX TUTORIAL
A Guide to Your Personal Income Tax: Essentials
In the United States, the progressive tax system is one of the most important yet misunderstood concepts of tax planning. Whenever people are asked ...
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 ...
An Introduction to MetaTrader 4 and MetaTrader 5
Metatrader 4 (MT4)
Metatrader 4 (MT4) is a prominent trading platform among online brokerage firms developed by MetaQuot ...
Renovate or Move?
You have a well-furnished home with a garden full of flowers and plants. Imagine sharing your beautiful abode, which has four bedrooms, a kitchen, ...
Student Loans: Loan Repayment
Students, soon after your graduation, you need to enter the repayment phase. In other words, you have to start paying off your student loans. This ...
ECONOMIC CALENDAR
Time | Country | Indices | Period |
---|---|---|---|
08:30 | Producer & Import Prices | Mar | |
11:00 | Industrial Production | Feb | |
14:30 | Manufacturing Shipments | Feb | |
14:30 | Wholesale Sales | Feb | |
14:30 | Retail Sales | Mar | |
14:30 | NY Fed Empire State manufacturing index | Apr | |
16:00 | Business Inventories | Feb | |
16:00 | NAHB Housing Market Index | Apr | |
04:00 | Real GDP | 1 quarter |