Bow Tie Loan – Explained

by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry

Update Table of Contents What is a Bow-Tie Loan?How Does a Bowtie Loan Work?Bow Tie Loans and Negative Amortization What is a Bow-Tie Loan?Bow-tie loans are primarily short term variable rate loans. Bow-tie loan is issued with a predetermined interest rate. It delays...

Breaking the Buck – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is Breaking the Buck?Breaking the buck is described as when the money market funds investment income can not cover operating expenses or investment losses. In other words, breaking the buck occurs when the net asset value of a money market fund indicates lower...

Closed-End Management Company – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is a Closed-End Management Company?A closed-end management company is an investment company that operates closed-end mutual funds with a limited number of shares sold to investors just like an initial public offering. This company sells specific shares to...

Close Location Value – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is a Close Location Value?CLV is an indicator that states an asset closing price in relation to the High-Low range. This range is between +1 and -1. +1 indicates that the closing price is near its High and -1, near its low. This is used in technical analysis to...

Clientele Effect – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is the Clientele Effect?The clientele effect stems from the idea that the kind of investors that are attracted to a security or investment as well as their goals for the investment determine the price movement of such security. The clientele effect explains how...

Commodity Pool – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is a Commodity Pool?A commodity pool is a type of investment trust or syndicate where different traders pool funds together to trade in futures and commodities market. In a commodity pool, several investors combine their contributions solely for the purpose of...

Commodity Exchange Act – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is the Commodity Exchange Act?The Commodity Exchange Act (CEA) is federal legislation in the United States that regulates the trading of commodity futures in the markets. This federal act was passed by the U.S government in 1936 to enable the trade of all futures...

Commodities Exchange – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is a Commodities Exchange?A commodities exchange refers to an organized marketplace where derivative products and commodities are traded. Trades that take place in a Commodity exchange include the trade of raw products and materials such as metal, agricultural...

Committee on Payment and Settlement Systems – Explained

by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry

Update Table of Contents What is the Committee On Payment And Settlement Systems?How Does the Committee On Payment And Settlement Systems Work?History of the CPMIFunctions of the CPMI What is the Committee On Payment And Settlement Systems?The Committee on Payments...

Combined Loan to Value Ratio – Explained

by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry

Update Table of Contents What is the Combined Loan-to-Value (CLTV) Ratio?How is a Combined Loan-to-Value (CLTV) Ratio Used?How to Calculate the Combined Loan-to-Value (CLTV) RatioWhat Does the Combined Loan-to-Value (CLTV) Ratio Tell You?The Difference Between...