What is a Lending Facility? The lending facility is a means in which financial assistance is being provided to banks and other financial institutions. These financial institutions must be U.S Federal reserve accredited. This is done to enable these financial institutions to meet up reserve requirements by Central bank. On the other hand, central ban...

What is a Mechanic's Lien? A mechanics lien, also known as an artisan's lien, is a type of lien that can be used by builders, contractors, material venders, laborers, and artisans offering specialized services. If the service provider is not paid for the work performed, the artisan can file a lien against the personal or real property of the debtor....

What is Manufacturer's Suggested Retail Price? The Manufacturer's Suggested Retail Price (MSRP), also known simply as the list price, is the price at which a manufacturer recommends that a particular product be sold in retail outlets. The MSRP is also variously known as the recommended retail price (RRP), the suggested retail price (SRP) or the stic...

What is the Economic Cycle? The economic cycle refers to the period when the economy fluctuates between expansion and contraction stages. One can refer to expansion as growth period, and contraction as recession period. Economists evaluate the present economic cycle by analyzing factors such as interest rates, employment levels, purchasing power of ...

What is a Dutch Auction? A Dutch Auction is an auction process where the auctioneer or seller starts with a high asking price and then lowers it incrementally or in stages until there is a bid for the item (or batch being sold). This is most appropriately referred to as a Simple Dutch Auction. Can you Sell Multiple Items in a Dutch Auction? When the...

What types of punishment exist for criminal activity? Criminal statutes carry numerous forms of punishment or sanction for criminal conduct including: Fines - These are monetary penalties placed on someone convicted of criminal activity. Incarceration - This includes the physical detention of an individual. Other Loss of Rights or Privileges- Other ...

What is Adjustable-Rate Preferred Stock? Adjustable-Rate Preferred Stock is a form of preferred stock where the dividend paid will have variations with a benchmark rate, generally that of a T-bill. The valuation of dividend from preferred shares is ascertained beforehand with a formula so as to be flexible with rates, and due to this flexibility, pr...

What is an Original Issue Discount? An original issue discount (OID) is when the companies sell their face value bonds at a discount. Often bonds are sold at maturity for a sum less than their stated value; the difference is the OID, which becomes the buyer's additional interest income if it retains it at maturity. Original issue discount applies to...

What is Asset-Based Lending? Asset-based lending refers to an organizational borrowing backed up by a collateral security or asset. Asset-based loan is also known as line of credit that is backed by assets such as accounts receivable, inventory, equipment, or other assets that are a part of balance sheet. Asset-based lending is also called asset-bas...

What is a Political Action Committee? Political action committees (PACs) are created to raise money privately to make donation to a political campaign hoping to influence the election. Super PACs are capable of raising unlimited sums of money to influence an election, but they aren't allowed to make direct donations to a campaign. How Do Super PACs ...