Graded vesting is a type of vesting schedule in which an employee gradually earns the right to keep their employer-sponsored benefits over time. For example, an employer may offer a 401(k) plan with a vesting schedule that allows employees to keep 100% of their contributions and employer matching contributions after five years of service. This … Read more
Write Offs and Methods for Estimating. Bad debt is defined as any debt that is unlikely to be repaid by the debtor. This can occur for a variety of reasons, such as the debtor being unable to pay, the debtor being unwilling to pay, or the debtor being deceased. There are two main methods for … Read more
Circular trading is a type of fraud in which investors are lured by the promise of high returns from investments that are actually part of a Ponzi scheme. In a Ponzi scheme, early investors are paid returns from the money invested by later investors, rather than from profits earned by the underlying investment. Circular trading … Read more
A checking account is a type of bank account where customers can deposit and withdraw money as needed. Checking accounts are the most common type of bank account and are typically used for everyday transactions such as paying bills and shopping. Customers typically receive a debit card and checks with their checking account, which they … Read more
The intrinsic value of an asset is the difference between the market value of the asset and the present value of the expected future cash flows from the asset. The intrinsic value is also sometimes referred to as the “true” value or the “real” value. The market value of an asset is the price that … Read more
Preference shares, also known as preferred stock, are a type of stock that gives shareholders preferential treatment in the event of a liquidation or bankruptcy. Preferred shares typically have a higher dividend rate than common shares, and they also have priority over common shares when it comes to the distribution of assets. There are two … Read more
A combination loan is a type of mortgage that allows you to combine two different types of financing into one loan. This can be helpful if you want to get the best terms on both loans, or if you want to save money on interest by consolidating two loans into one. There are a few … Read more
3C1 is a type of hedge fund that invests in three different types of assets: commodities, currencies, and credit. This type of fund is designed to provide investors with exposure to a broad range of asset classes, while also hedging against potential downside risk. The “3C1” in the name refers to the three asset classes … Read more
GRS refers to a type of stock that is registered with the Securities and Exchange Commission (SEC) in the United States. This type of stock is available for purchase by investors in any country. Is UBS an ADR? UBS is not an American Depositary Receipt (ADR). Does gr stand for gram? No, gr does not … Read more
Reconstitution occurs when a company’s board of directors makes changes to the composition of its index, either by adding or removing component stocks. This usually happens in response to changes in the underlying market, such as mergers, acquisitions, or bankruptcies. What happens during Russell rebalancing? The Russell rebalancing is an annual event that takes place … Read more
