What Is the Trust Indenture Act of 1939?

The Trust Indenture Act of 1939 is a federal law that governs the issuance of certain types of bonds, including corporate bonds. The act requires that bonds be issued in accordance with a trust indenture, which is a contract between the issuer and the trustee. The trustee is responsible for safeguarding the interests of the … Read more

What Is a Term Loan?

A term loan is a loan from a bank for a specific amount that has a specified repayment schedule and a fixed or floating interest rate. The loan is repaid in equal installments over the loan term. What are the 4 C’s of a loan? 1. Creditworthiness: Lenders will assess your creditworthiness to determine whether … Read more

Definition of liquid asset

Generally, liquid assets are defined as those that can be converted into cash in the short term without losing value and that being goods without delay, they can be transformed into cash. At an economic level, the liquid asset is the one that can be converted or exchanged for money quickly or not lose value … Read more

What is the merger of companies?

A company merger occurs when two legal persons or companies join their assets to form a company with the same ownership and administration, with which to continue developing the business activity. Because the companies they are not bought and they are not liquidated, the shareholders do not receive any money for their shares, but they … Read more