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Q: what is the "national debt"?
Category: glossary
, Asked by: C. Parsons from United States
A: The total debt accumulated by a government through the issue of government bonds, Treasury bills and Treasury notes. The government has to pay interest on its borrowings, and this obligation is one of the major budget items for many governments.
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Q: please tell me what "mezzanine financing" is
Category: glossary
, Asked by: V. Figueroa from New Haven, United States
A: 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.
Mezzanine financing is advantageous because it is treated like equity on a company's balance sheet and may make it easier to obtain standard bank financing. To attract mezzanine financing, a company usually must demonstrate a track record in the industry with an established reputation and product, a history of profitability and a viable expansion plan for the business (e.g. Expansions, acquisitions, IPO).
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Q: Would you tell me where I can find a site that has informative first time users educational courses?
Category: platform
, Asked by: K. O. From Canada
A: We think "AVA FX" is exactly the place for that. They offer gripping forex schools for first-timers, with simple instructions and options. You can absolutely learn a lot from viewing them.
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Q: do you know what "option adjustable-rate mortgage" is?
Category: glossary
, Asked by: Giovani I. From Fullerton, United States
A: an "option adjustable-rate mortgage " is A type of mortgage where the mortgagor (borrower) has several options as to which type of payment is made to the mortgagee (lender). In addition to having the choice of making payments of interest and principal that amounts to those made in conventional mortgages, option ARMs also have alternative payment options where the mortgagor can make significantly smaller payments by making interest-only payments or minimum payments.
Since many option ARMs offer a low teaser rate, many mortgagors unknowingly refinance their present mortgage in hopes of making lower payments. Unfortunately, once these short-term teaser rates expire, the rates of interest are returned back to those similar to conventional mortgages.
Furthermore, for those unlucky mortgagors that elected to make minimum payments, they will find that the principal owed on their mortgage has actually increased. This is because the value of minimum payments did not entirely cover the mortgage's interest. The uncovered interest would then be added to the mortgage's principal.
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Q: do you know what the "securities and investments board" is?
Category: glossary
, Asked by: D. Q. From France
A: A private limited company formerly reporting to the Chancellor of the Exchequer with responsibility for the regulation of the UK investment market in accordance with the Financial Services Act 1986. It was replaced by the Financial Services Authority (FSA
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Q: please define the "filter rule"
Category: glossary
, Asked by: X. V. From United Kingdom
A: "filter rule " is Rules that attempt to guide investors towards buying and selling patterns that will be the most profitable.
Filter rules are created from analyzing the historical price trends of a security.
Evidence has suggested that filter rules are rarely successful in creating profits for the investor.
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Q: Would you recommend me of a forex site with a good server connection?
Category: technical
, Asked by: G. Bush from Perpignan, France
A: We think "Finexo Ltd." is definitely the place if you look for a forex site that's got the most secure server connection. Players are frequently happy with trying to login to the server. It is very simple to use the forex platform, the communication is always stable. And you do not knock against the familiar communication troubles you many times meet connecting to this size of servers.
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Q: Would you help me if I need an online fx platform with modest leverage rates
Category: money
, Asked by: Brylee S. From Cork, Ireland
A: We think the best place for your purpose is "FX Universal" - the leverage in this site is only 100:1. The smaller amount to deposit is only $250, the customer support is top notch, the platform graphics are pretty stylish, and also there's no charge for commission in this one.
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Q: do you know what an "unlisted trading privileges" is?
Category: glossary
, Asked by: Amir H. From Dublin, Ireland
A: Rights that give an exchange the ability to trade an unlisted security.
These privileges are offered to member firms. In order to obtain unlisted trading privileges, the exchange must file an application with the Securities and Exchange Commission (SEC) for approval.
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Q: please tell me what a "p to p" is
Category: glossary
, Asked by: M. A. From United States
A: P to P can mean one of two things:
1. Peer to peer allows internet users to transfer files directly, rather than through the use of a website or directory. File transfers are done directly from the users' computers.
2. An abbreviation of "path to profitability". This refers to the roadmap a startup company follows in order to propel its operations from its current state of losing money to becoming profitable.
A perfect example of peer to peer is the internet file swap sites that allow users to transfer audio, video and other types of files for free.