Conversion Price
What is Conversion Price? The conversion price informs the bondholders of the number of shares that would be issued in case they opt for conversion. For example, Mary holds …
Inland Letter of Credit
Meaning Inland letter of credit is exactly like a regular letter of credit. The only difference between the two is that regular letter of credit is used for international …
Usance Letter of Credit
What is Usance Letter of Credit? A usance letter of credit is a specific type of letter of credit that allows a predetermined credit period to the buyer i.e. …
Reverse Merger Process
What is a Reverse Merger? A reverse merger process is carried out to merge a thriving and potentially scalable private company with a dormant or “shell” company listed on …
Duration of a Bond
What is the Duration of a Bond? The duration of a bond expresses the sensitivity of the bond price to changes in the interest rate. In other words, the …
Rehypothecation
What is Rehypothecation? A rehypothecation most simply put occurs when your assets are pledged with the “creditor of your creditor”. It is not as complex as it sounds. To …
Sight Letter of Credit
A sight letter of credit is a special type of letter of credit in which a payment term “sight” is used in a letter of credit. It basically means …
Formula for Cash Flow
Why is Formula for Cash Flow Important? A formula for cash flow is an analytical way of investigating into the flow of funds in a business. Of course, every …
Samurai Bonds
1Samurai bonds are issued by non-Japanese companies, mainly in Tokyo, Japan. The bonds are denominated in the Japanese currency – Yen. A business enterprise can invade the foreign markets …
Cash Flow Management
What is Cash Flow Management? Cash flow management refers to the process by which an organization maintains control over the inflow and outflow of funds. The fundamental goal of …