RISK SHIFTING
The transfer of risk to another party. Risk shifting has many connotations, the most common being the tendency of a company or financial institution facing financial distress to take on excessive risk. This high-risk behavior is generally undertaken with the objective of generating high rewards to equity owners – who face little additional downside risk but may garner significant extra return – and has the effect of shifting risk from shareholders to debt holders. Risk shifting also occurs when a company goes from offering a defined benefit plan to its employees, to a defined contribution plan. In this case, the risk associated with pensions has shifted from the company to its employees.
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Dynasty Trust
Long-term trusts made to pass wealth from one generation to another without paying transfer taxes including estate and gift taxes. The trust can su ...
C&I
Loan made to a business or company, not to an individual, which provides either working capital or finances key capital expenditures. Usually short ...
Hypermarket
Hypermarket is a combination of a department store and a grocery supermarket. A hypermarket offers various products like clothing, groceries, and a ...
Assets Under Management
The asset's market value which an investment company handles on behalf of investors. Assets Under Management (AUM) is perceived as a scale of s ...
Business Income Coverage Form
Insurance policy which covers a loss of income a firm incurs due to a slowdown or temporary suspension of its operations because if damage to its p ...
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