What Is Yield Maintenance?

Yield maintenance is a type of prepayment penalty that is designed to protect the investor from losing interest payments if the borrower decides to refinance the loan. The penalty is calculated based on a percentage of the outstanding loan balance and is typically paid at the time of refinancing. Why Is prepayment a risk? Prepayment … Read more

Appraisal Right.

An appraisal right is the right of a shareholder to demand that a corporation buy back their shares at a fair price if the shareholders are not happy with a proposed merger or acquisition. Appraisal rights are designed to protect shareholders from being taken advantage of in a merger or acquisition. What is preemptive right? … Read more


B-money was an early proposal for a decentralized digital currency system. It was first proposed by Wei Dai in 1998. The system was designed to allow anonymous, untraceable transactions. Transactions would be recorded on a decentralized ledger, and users would be able to mine new units of currency. The system was never implemented, but it … Read more

Debt Instrument.

A debt instrument is a financial instrument that represents a debt owed by one party to another. Debt instruments can be in the form of bonds, loans, or lines of credit. What are the four basic categories of debt instruments? There are four main categories of debt instruments: secured, unsecured, convertible, and non-convertible. Each type … Read more

The Benefits and Risks of Tracking Stocks.

A tracking stock is a type of common stock that tracks the performance of a specific business unit or group of assets within a company, rather than the company as a whole. Tracking stocks are often used by companies to spin off specific businesses or to raise capital for specific projects. Tracking stocks come with … Read more