What Is the Small Business Administration (SBA)?

The Small Business Administration (SBA) is a U.S. government agency that provides support to small businesses and entrepreneurs. The SBA offers a variety of services and programs, including financing, counseling, and training. The agency also provides disaster relief and assistance to businesses in areas affected by natural disasters. Who is the current SBA administrator? The … Read more

Mortgage Pool.

A mortgage pool is a group of mortgages that are securitized and sold to investors. The mortgages in the pool have similar characteristics, such as credit quality, loan type, and maturity date. Mortgage pools are used by mortgage lenders to manage risk and provide liquidity. What is another name for a mortgage? A mortgage is … Read more

Single-Premium Deferred Annuity (SPDA).

A Single-Premium Deferred Annuity (SPDA) is an annuity contract in which the policyholder pays a single premium, and the insurer agrees to make periodic payments to the policyholder at a future date. The payments may be made either in a lump sum or in installments, and the policyholder may elect to receive them either for … Read more

Corporate Debt Restructuring.

Corporate debt restructuring is the process of renegotiating the terms of one or more outstanding corporate loans in order to improve the financial situation of the borrower. This may involve extending the loan’s maturity date, lowering the interest rate, or converting the loan into equity. Corporate debt restructuring is often necessary when a company is … Read more

What Is a Shortage in Economics?

In economics, a shortage is a situation in which the quantity demanded of a good or service exceeds the quantity supplied. In other words, it is a condition in which there is not enough of a good or service to meet the demand of consumers. A shortage can be caused by a number of factors, … Read more

What Is a Subscription Right?

A subscription right is a right that is given to shareholders of a company to subscribe to new shares of the company, usually at a discount to the market price. This right is typically given to shareholders when the company is raising new capital. Can rights issue be sold? Yes, rights issue can be sold, … Read more

Security Deposit.

A security deposit is a sum of money that a tenant pays to a landlord at the beginning of a tenancy. The deposit is held by the landlord and is used to cover any damages that the tenant may cause to the property during their tenancy. The deposit is also used to cover the cost … Read more

Optimal Capital Structure: Meaning, Factors, and Limitations.

. Optimal Capital Structure: Meaning, Factors, and Limitations. What is capital structure with example? A company’s capital structure is the way in which it finances its operations and growth by using different sources of funds. The main types of capital include debt, equity, and hybrid securities. A company’s debt-to-equity ratio is one way to measure … Read more

Positive Pay Explained.

Positive pay is a type of fraud prevention service offered by banks to businesses. With positive pay, the business provides the bank with a list of checks that it expects to issue during a certain period of time. The bank then compares the checks presented for payment against the list of authorized checks. If a … Read more