Bank Rating – Explained

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

Update Table of Contents What is a Bank Rating?How Does a Bank Rating Work?Bank Rating and Examples of CAMELS Criteria What is a Bank Rating?Bank Rating refers to a formula developed by the Federal Deposit Insurance Corporation (FDIC) to rate the safety and soundness...

Balloon Maturity – Explained

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

Update Table of Contents What is a Balloon Maturity?How Does Balloon Maturity Work?Balloon Maturity in Mortgages What is a Balloon Maturity?Balloon maturity means that the principal or face value of a debt instrument is due in a single, lump-sum payment at the end of...

Balloon Interest – Explained

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

What is Balloon Interest?Balloon interest refers to paying a higher coupon rate on financial instruments held over the long term within a serial bond issue. A serial bond issue has its bonds maturing at different dates but a term issue bonds mature at a specific date...

American Recovery and Reinvestment Act – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is the American Recovery And Reinvestment Act?The American Recovery and Reinvestment Act (ARRA) of 2009 is a federal law passed by the U.S Congress to provide relief to American families after the Great Recession of 2008. ARRA is otherwise called the Recovery...

Contractionary and Expansionary Monetary Policy – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is a Contractionary Monetary Policy?Contractionary policy is a type of monetary measure which maintains higher than usual short-term interest rates, or which reduces or even shrink the rate of growth in the money supply. This reduces economic growth in the short...

Cost Insurance and Freight – Explained

by TheBusinessProfessor | Feb 23, 2025 | Operations, Project, & Supply Chain Management

What is Cost, Insurance, and Freight (CIF)?Cost, Insurance and Freight (CIF), also known as “port of destination”, is a rule that makes the seller of a commodity pay for all costs and freight, including insurance against loss or damage. Once the goods are...

Conscious Capitalism – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is Conscious Capitalism?Conscious capitalism is an economic system which builds on the foundations of capitalism (free markets and private ownership of production) but also follow a business strategy that aims to support both people and the environment...

Coopetition (Value Net Model) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Strategy, Entrepreneurship, & Innovation

What is Coopetition?Coopetition is a strategy in business in which competition and cooperation are combined in a way that harnesses the benefits of each. Specifically, coopetition is when two companies that are known to be competitors collaborate with each other with...

Attribution Analysis – Explained

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

What is Attribution Analysis?Attribution analysis is a method of analyzing the performance of an investment portfolio or a fund manager. This method of analysis evaluates why a portfolio performs differently from the market benchmark. This form of analysis is also a...

Bull (Investor) – Explained

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

What is a Bull?A bull is a term that describes a situation in the market and investors that exhibit certain traits. In the stock market, a bull is an investor who buys a security or stock with the expectation that the stock will increase in price and they will make a...