Business Finance

Dead-cat bounce is a term used in financial markets to describe a temporary recovery or uptick in the price of a declining asset or market. It suggests a brief and often deceptive rally in value following a significant decline. This phenomenon is widely observed in stock markets but can apply to other financial assets as […]

Deadweight debt refers to a financial term that describes a type of debt that a borrower cannot realistically repay due to their financial situation. It often results in significant financial burden and potential default. Key Points about Deadweight Debt How Deadweight Debt Occurs Deadweight debt typically arises when a borrower faces prolonged financial difficulties or

Dear money is a term used in economics and finance to describe a situation where the cost of borrowing money is relatively high due to tight monetary policies or high interest rates. It contrasts with “easy money,” where borrowing costs are low, stimulating economic growth. This concept is crucial for understanding how central banks and

A debt collection agency is a company that specializes in recovering unpaid debts from individuals or businesses on behalf of creditors. These agencies act as intermediaries between the creditor and the debtor, aiming to collect the outstanding amounts owed. They can work on various types of debt, including credit card debt, medical bills, personal loans,

Debt adjusting refers to the process where a third party, usually a debt adjustment company, helps individuals or businesses reorganize and manage their debts. This process aims to make debt more manageable by negotiating with creditors, consolidating debts, or setting up a repayment plan. Debt adjusting is often used by those struggling to keep up

A debenture is a type of debt instrument that companies use to borrow money. Unlike other forms of debt, debentures are not backed by physical assets or collateral. Instead, they are backed by the general creditworthiness and reputation of the issuer. Debentures are essentially a form of unsecured loan. Key Points about Debentures How Do

Debt is an amount of money that one party, called the debtor, borrows from another party, called the creditor. The debtor agrees to pay back the borrowed amount, usually with interest, over a specified period. Key Points about Debt Types of Debt Secured Debt Secured debt is backed by an asset (collateral), which the lender

A debt collection agency is a business or organization that specializes in recovering outstanding debts on behalf of creditors or companies. These agencies are hired by creditors when efforts to collect debts directly from debtors have been unsuccessful. Key Points about Debt Collection Agencies Functions of Debt Collection Agencies Debt Recovery Process Debt collection agencies

Introduction In corporate finance and accounting, understanding how money moves over time defines how decisions are made. One such concept, debt discounting, helps us figure out the real value of a promise to pay in the future. In this article, I’ll walk through what debt discounting means, how it works, and how I apply it

As a financial analyst, I often encounter businesses and investors who struggle to interpret the debt-equity ratio. This metric serves as a cornerstone in financial analysis, helping stakeholders assess a company’s financial leverage and risk exposure. In this article, I’ll break down the debt-equity ratio, explain how to calculate it, and discuss why it matters