Golden Parachute Clause Definition – Examples of Payments

golden parachute“Golden parachutes” get a lot of  press, and they always sound like elite packages for high-level executives. Very few people get them, and very few people know how they work.

Companies usually reserve them for executives at the top of the organization chart, and these contracts establish an agreed-upon compensation package that the employee would immediately receive upon termination. The benefits package usually includes a list of specific terms that explain what the terminated employee will receive.

How a Golden Parachute Works

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How to Short Bonds – Is Short Selling U.S. Treasury Bonds a Good Idea?

dollar bonds fallingBonds are often considered to be fairly safe investments, but their trading prices can endure as much fluctuation and volatility as stocks. As a result, it has become increasingly popular to take advantage of the opportunity to short sell bonds.

But what exactly causes the value of bonds to decrease and how can one go about short selling a specific bond or class of bonds?

Let’s explore these areas in greater depth below.

Why Would You Short Sell a Bond?

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Strangle Option Strategy – Definition, Advantages & Disadvantages

strangle investmentFinancial derivatives, such as stock options, are complex trading tools that allow investors to create many trading strategies that they would otherwise not be able to execute using primary securities (i.e. stocks and bonds). The practice of using derivatives to develop new strategies is an example of financial engineering and these strategies can be very profitable for investors.

One strategy that has become increasingly popular is known as the “strangle.”

What Is a Strangle Option?

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Interest Rate Swaps Explained – Definition & Example

business interest rate swapsAn interest rate swap is a financial derivative that companies use to exchange interest rate payments with each other.

Swaps are useful when one company wants to receive a payment with a variable interest rate, while the other wants to limit future risk by receiving a fixed-rate payment instead.

Each group has their own priorities and requirements, so these exchanges can work to the advantage of both parties.

How Interest Rate Swaps Work

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How Rising Food Prices Will Affect You & 6 Ways to Prepare

food prices increasing corn kernelsThe rising price of gas isn’t the only necessity that’s been gouging our wallets recently. The price of food is now the highest it has been since 1974, and the world is starting to face what could turn into one of the worst food crises in decades.

While America has typically been the land of plenty, we’ll start to feel the burden along with other citizens all over the world. Though the situation looks bleak, there are things we can do to help.

But first, let’s look at what’s caused the increase in food prices to begin with.

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General Motors GM Chapter 11 Bankruptcy Timeline & Future Lessons

gm bankrupt underwaterGeneral Motors grew from a small company in 1908 into a corporate giant within a couple of decades. For years, people believed that GM was too big to ever go away. Investors had a lot of confidence in the company and many employees invested their life savings into it.

Everyone realized the mistake they’d made with this assumption when, in 2009, the company officially declared Chapter 11 bankruptcy. Even amidst one of the worst recessions in United States history, no one would have expected General Motors to face financial failure.

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What Is Insider Trading and How to Avoid It – Definition, Laws & Cases

insider trading informationWhen you hear the term “insider trading,” you probably immediately think of someone like Martha Stewart.

But you don’t have to be famous or wealthy to be guilty of it. In fact, it’s possible to engage in insider trading without even knowing it.

In this article, we’ll look at the ins and outs of insider trading and how to make sure that the investing you’re doing is above board – and won’t come with a stint in jail.

What Is Insider Trading?

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Crude Oil Futures Trading 101 – What Are They and Should You Invest in Them?

oil prices futuresWith the price of oil skyrocketing (the price recently increased by 14% in a single week), you may be wondering if now is the right time to invest in this commodity.

There are plenty of ways to get in on the oil industry. For example, you can buy stocks of oil and drilling companies. But one of the most profitable – and riskiest – investments you can make is in oil futures.

In this article, we’ll look at what oil futures are, and then discuss the pros and cons of investing in them. You can then decide if they’re a good addition to your investment portfolio.

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What Is an MBA Program and Why Get an MBA Degree in Business School?

business school groupAn MBA (Masters in Business Administration) is the most sought-after graduate degree in the United States. The degree is versatile and used all over the world, and can offer a major boost to anyone’s career.

Despite its mainstream popularity, many still aren’t sure what is involved in obtaining an MBA. Some common questions include: What is required to gain admission? What kind of curriculum do these programs offer? What are some of the pros and cons of getting this degree? Are there different types of an MBAs available? Who would this degree suit best?

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Advances in Behavioral Finance Theory & Economics

market puzzledCollectively, consumers tend to make some very strange choices when it comes to how they make purchases and manage their money. Similarly, investors in financial markets also tend to think as a group and make irrational decisions. It is almost uncanny how an event can trigger so many market participants to unconsciously react in the same ways.

Behavioral finance is a response to this strange behavior. The theory attempts to explain how investors process events and formulate decisions. Theoretically, understanding behavioral finance allows other investors to predict market movements and profit from them.

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