by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is Devolvement?Devolvement refers to an act of passing ones duty to another or delegating to another. An individual can devolve the authority or responsibility to another person. In investment, devolvement is a situation in which an underwriter or underwriting...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is an Unquoted Public Company?An unquoted public company is a public company that is not listed on any exchange. Such a company might have previously traded on an exchange but demoted to an unquoted public company due to financial distress. An unquoted public...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is the Irrelevance Proposition Theorem?The irrelevance proposition theorem is a theory of corporate capital structure that was developed by Merton Miller and Franco Modigliani in 1958. This theory states that the capital structure of a company does not affect its...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is a Private Activity Bond?A private activity bond (PAB) is tax-exempt security issued by a municipality or on behalf of a local government to fund a private project. The private projects financed through PAB are projects that benefit the larger community....
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is a Private-Purpose Bond?A private-purpose bond is a municipal bond that allows over 10% of its proceeds to be used for private activities. When a municipal bond is issued and a significant portion of its proceeds is used for a project or activity run by a...
by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles
What is Conduit Financing?This is a financing mechanism for a non-profit organization. It occurs when the government or other agency acquires fixed income securities for a non-profit organization to finance large projects. Here, the government or other agencies...
