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What is Mismatch Risk?
1) A category of risk that refers to the possibility that a swap dealer will be unable to find a suitable counterparty for a swap transaction for which it is acting as an intermediary.
2) The risk that an investor has chosen investments that are not suitable for his or her circumstances. Read more for examples and further explanation including related video clips and also comments
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What is Share Of Wallet – SOW?
A marketing term referring to the amount of the customer’s total spending that a business captures in the products and services that it offers. Increasing the share of a customer’s wallet a company receives is often a cheaper way of boosting revenue than increasing market share. Read more for examples and further explanation including related video clips and also comments
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What is Global Crossing?
A communication services company that filed for bankruptcy protection amid an accounting scandal where it had allegedly inflated earnings by using capacity swaps, among other things. Capacity swaps are the exchange of telecommunications capacity between carriers that is booked as revenue without money ever being exchanged. Read more for examples and further explanation including related video clips and also comments
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What is Cash And Cash Equivalents – CCE?
An item on the balance sheet that reports the value of a company’s assets that are cash or can be converted into cash immediately. Read more for examples and further explanation including related video clips and also comments
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What is Account Reconcilement?
The process of confirming that two separate records of transactions in an account are equal. This can happen internally with a bank or broker, such as between general ledger entries and individual account records. Reconcilement also occurs when a customer of a bank or broker confirms that his or her personal records match what is reported on periodic statements. Ther term can also refer to balancing the books and records of a business with software programs and data entries. Read more for examples and further explanation including related video clips and also comments
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What is Shanghai Stock Exchange?
The largest stock exchange in mainland China, the Shanghai Stock Exchange is a nonprofit organization run by the China Securities Regulatory Commission (CSRC). Stocks, funds and bonds are all traded on the exchange, which has listing requirements including that a company must be in business and be earning a profit for at least three years before joining the exchange. Read more for examples and further explanation including related video clips and also comments
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What is Forex Market?
The market in which participants are able to buy, sell, exchange and speculate on currencies. The forex markets is made up of banks, commercial companies, central banks, investment management firms, hedge funds, and retail forex brokers and investors. The currency market is considered to be the largest financial market in the world, processing trillions of dollars worth of transactions each day. Read more for examples and further explanation including related video clips and also comments
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What is BWP (Botswana Pula)?
The currency abbreviation for the Botswana pula (BWP), the currency for Botswana. The Botswana pula is made up of 100 thebe and is often presented with the symbol P. The BWP is pegged to a basket of currencies, which operates using a crawling band exchange rate using the International Monetary Fund’s special drawing rights (SDR) and the South African rand as reserve assets. The Botswana pula is issued by the bank of Botswana. Read more for examples and further explanation including related video clips and also comments
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What is Mezzanine Financing?
A hybrid of debt and equity financing that is is typically used to finance the expansion of existing companies. Mezzanine financing is basically debt capital that gives the lender the rights to convert to an ownership or equity interest in the company if the loan is not paid back in time and in full. It is generally subordinated to debt provided by senior lenders such as banks and venture capital companies.
Since mezzanine financing is usually provided to the borrower very quickly with little due diligence on the part of the lender and little or no collateral on the part of the borrower, this type of financing is aggressively priced with the lender seeking a return in the 20-30% range. Read more for examples and further explanation including related video clips and also comments
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What is Surplus Spending Unit?
An economic unit with income that is greater than or equal to expenditures on consumption or real investment over the course of a period. A surplus spending unit will use its additional income to buy goods, invest, lend money to deficit spending units or pay off its own deficit from an earlier period. Read more for examples and further explanation including related video clips and also comments
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