How to Not Break a Negative Pledge Clause.

A negative pledge clause is a clause typically found in a loan agreement that prohibits the borrower from pledging, assigning, or otherwise encumbering any of its assets without the prior consent of the lender. The purpose of the clause is to protect the lender’s interest in the borrower’s assets and to ensure that the borrower … Read more

What Is Overhang?

Overhang is the portion of a company’s outstanding shares that are not owned by the public. Overhang can come in the form of employee stock options, convertible bonds, or warrants. While overhang can provide a boost to a company’s stock price in the short-term, it can also have a negative effect on the price in … Read more

Circular Flow Model.

The circular flow model is a graphical representation of the flow of money and goods and services between the different sectors of the economy. The model shows how the different sectors are interconnected and how money flows between them. What is the another name of income flow? There is no definitive answer to this question … Read more