Tag: bank

Bank Draft definition explanation

What is Bank Draft?
A type of check where the payment is guaranteed to be available by issuing bank. Typically, banks will review the bank draft requester’s account to see if sufficient funds are available for the check to clear. Once it has been confirmed that sufficient funds are available, the bank effectively sets aside the funds from the person’s account to be given out when the bank draft is used. Read more for examples and further explanation including related video clips and also comments
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American National Standards Institute – ANSI definition explanation

What is American National Standards Institute – ANSI?
An organization that oversees the creation and dissemination of norms and standards in almost every U.S. business sector. ANSI is also actively involved in the accreditation programs that oversee those standards, including ISO 9000 (quality) and ISO 14000 (environmental) management systems. It was founded in 1918 by five engineering societies and three government agencies; it is now a nonprofit organization. Read more for examples and further explanation including related video clips and also comments
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Account Hold definition explanation

What is Account Hold?
Deposits that are delayed before being credited to an account, such as deposited checks that are drawn on foreign or out-of-state banks. A hold can also be placed on an entire account if there has been a transaction that must be or has been reported to the authorities as a suspicious transaction under the anti-money laundering regulations, or if there is a suspicion or report of identity theft. Read more for examples and further explanation including related video clips and also comments
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Overtrading definition explanation

What is Overtrading?
1. Excessive buying and selling of stocks by a broker on an investor’s behalf in order to increase the commission the broker collects.

This situation has been known to arise when brokers are pressured to place a newly issued security underwritten by a firm’s investment banking arm.

Also known as “”churning””.

2. A situation in which a company is growing its sales faster than it can finance them. This usually leads to enormous accounts payable or accounts receivable and a lack of working capital to finance operations. Read more for examples and further explanation including related video clips and also comments
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