An 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…
Standard and Poor’s (commonly known as S&P) is one of the most prominent financial intelligence companies in the world. S&P is a division of the McGraw-Hill Companies and has more than 150 years of experience providing financial services to investors worldwide….
“Cash is king” is an age-old saying often used to explain the failure of both businesses and consumer households. Without the proper amount of cash on hand, both of these entities can run into major trouble, and even be forced…
Working with a business partner drastically changes the dynamics of running a business. A great business partner can add a lot to a venture. On the other hand, entrepreneurs can also benefit from going solo when the alternative means an…
Running a business is very risky. In fact, an estimated 49% of businesses fail within their first five years and approximately 30% of businesses don’t even make it through the first two years. Some industries are particularly risky and have…
“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…
Financial 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…
Collectively, consumers tend to make bizarre choices when it comes to how they make purchases and manage their money. Similarly, investors in financial markets tend to think as a group and make irrational decisions. It’s almost uncanny how an event…
Imagine that you spent several hundred dollars or more on homeowners insurance coverage, just so that you could have a little peace of mind if something went wrong. Now imagine that your insurance company denied your claim after your home…
In the topsy-turvy world of the stock market, the idea of investing in reverse might sound fitting, or it might sound crazy. Short selling is a risky, but potentially lucrative investing transaction that’s a backward version of buying and holding…
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