instruction stringlengths 5 1.05k | output stringlengths 6 22.3k | input stringclasses 1
value |
|---|---|---|
what role do commercial banks play in the economy | commercial banks are crucial to the fractional reserve banking system currently found in most developed countries this allows banks to extend new loans of up to typically 90 of the deposits they have on hand theoretically growing the economy by freeing capital for lending | |
is my money safe at a commercial bank | for the most part yes commercial banks are heavily regulated and most deposit accounts are covered up to 250 000 by the federal deposit insurance corporation 8 moreover commercial and investment banking funds cannot be co mingled by law 8the bottom linecommercial banks are a critical component of the u s economy by pro... | |
what is a commercial loan | a commercial loan is a debt based funding arrangement between a business and a financial institution such as a bank it is typically used to fund major capital expenditures and or cover operational costs that the company may otherwise be unable to afford expensive upfront costs and regulatory hurdles often prevent small... | |
how commercial loans work | commercial loans are granted to a variety of business entities usually to assist with short term funding needs for operational costs or for the purchase of equipment to facilitate the operating process in some instances the loan may be extended to help the business meet more basic operational needs such as funding for ... | |
what are commercial mortgage backed securities cmbs | commercial mortgage backed securities cmbs are fixed income investment products that are backed by mortgages on commercial properties rather than residential real estate cmbs can provide liquidity to real estate investors and commercial lenders alike because there are no rules for standardizing the structures of cmbs t... | |
how commercial mortgage backed securities cmbs work | as with collateralized debt obligations cdo and collateralized mortgage obligations cmo cmbs are in the form of bonds the mortgage loans that form a single commercial mortgage backed security act as the collateral in the event of default with principal and interest passed on to investors the loans are typically contain... | |
when a mortgaged property is sold the new owner is able to assume the previous owner s loan for a fee this makes it easier to buy and sell properties without taking out a new loan | borrowers must pay a penalty if they pay off the loan early in order to compensate investors for the interest they would have received in later years these penalties are typically riskier than the prepayment penalties for residential mortgages some cmbs contracts include a defeasance clause meaning that if the borrower... | |
when a mortgaged property is sold the loan can be passed on to new buyers | high prepayment penalties to discourage borrowers from paying a loan early borrowers may be required to provide alternative collateral if they wish to pay a loan early | |
what is the difference between cmbs and rmbs | a residential mortgage backed security or rmbs is a security backed by a bundle of residential loans for homes or apartments a cmbs is backed by commercial real estate such as office buildings storefronts malls or other business spaces | |
what are the risks of a cmbs | the main risk for a cmbs investor is the possibility of a default in the underlying loans because these are non recourse loans the borrower cannot be held personally responsible if the loan defaults | |
what is the main benefit of a cmbs | for investors the main benefit of a cmbs is a reliable cash flow based on a fixed interest rate moreover prepayment penalties help discourage borrowers from early payments ensuring that the cash flow will continue for the full term of the loan the bottom linea commercial mortgage backed security cmbs is a type of secur... | |
what is commercial paper | commercial paper is an unsecured short term debt instrument issued by corporations it s typically used to finance short term liabilities such as payroll accounts payable and inventories commercial paper involves a specific amount of money that is to be repaid by a specific date minimum denominations are 100 000 terms t... | |
what s more the proceeds from this type of financing can only be used on current assets or inventories they are not allowed to be used on fixed assets such as a new plant without sec involvement | low interest rates for issuers mean low rates of return for investors also due to the large minimum denomination of 100 000 commercial paper typically isn t directly available to smaller investors however they can invest indirectly through companies that buy commercial paper who issues commercial paper commercial paper... | |
when the commercial paper matures investors in effect receive an interest payment of 100 000 along with the 10 million they loaned out this equates to an interest rate of 1 this interest rate can be adjusted for time contingent on the number of days the commercial paper is outstanding | say the term of the commercial paper is 30 days this means the firm will raise 10 million today and in 30 days it may repay 10 1 million to investors holding the commercial paper | |
is commercial paper a type of debt | yes commercial paper is short term unsecured debt issued by institutions who want to raise capital needed for a short amount of time it s an alternative to having to go through the effort and cost involved in getting a business loan who are the primary buyers of commercial paper due to the large minimum denominations u... | |
how do individuals invest in commercial paper | the minimum investment in commercial paper is usually 100 000 so the best way for smaller investors to invest in commercial paper is to put their money in the companies that buy it these include money market funds mutual funds and even exchange traded funds | |
what are the maturity periods for commercial paper | commercial paper typically has a maturity period ranging from one day to 270 days the most common maturities are 30 60 and 90 days by keeping the maturity period short issuers can reduce the risk of default and better manage their short term financing needs | |
what are the risks associated with commercial paper | even though the premise of commercial paper is a market with low risk participants the primary risk associated with commercial paper is still credit risk there will always be the possibility that the issuer may default on their repayment obligation since commercial paper is unsecured investors rely on the issuer s fina... | |
what is commercial real estate cre | commercial real estate cre is property used exclusively for business related purposes or to provide a workspace rather than a living space which would instead constitute residential real estate most often commercial real estate is leased to tenants to conduct income generating activities this broad category of real est... | |
how investors make money in commercial real estate | investing in commercial real estate can be potentially lucrative and serve as a hedge against the volatility of the stock market investors can make money through property appreciation when they sell but most returns come from tenant rents investors can use direct investments where they become landlords through the owne... | |
what is the difference between commercial and residential real estate | residential real estate is used exclusively for private living quarters commercial real estate refers to any property used for business activities types of commercial real estate include hospitals assembly plants storage warehouses shopping centers office spaces or any other location for a business enterprise | |
is commercial real estate a good investment | it can be commercial real estate can have impressive returns and considerable monthly cash flows and returns stood up well during the market shocks of the past decade as with any investment however commercial real estate comes with risks | |
what are the disadvantages of commercial real estate | rules and regulations are the primary deterrents for most people wanting to invest in commercial real estate the taxes mechanics of purchasing and maintenance responsibilities for commercial properties are buried in layers of legalese and they can be difficult to understand without acquiring or hiring specialist knowle... | |
what is commercialization | commercialization is the process of bringing new products or services to market the broader act of commercialization entails production distribution marketing sales customer support and other key functions critical to achieving the commercial success of the new product or service typically commercialization occurs afte... | |
when does commercialization occur | commercialization usually occurs after a small business has grown and scaled its operations and reached levels that allow it to successfully reach a larger market | |
what are the 3 tiers of commercialization | commercialization requires a carefully developed three tiered product rollout and marketing strategy | |
what is the legal process in commercialization | before a new product may be brought to market patents trademark registrations and other legal measures must be undertaken to protect the product s intellectual rights the bottom linecommercialization is the process of bringing new products or services to market on a broader scale commercialization involves production d... | |
what is a commingled fund | a commingled fund is a fund that consists of a portfolio of assets from various accounts that are blended together commingled funds exist to reduce the costs of managing the constituent accounts separately commingled funds also referred to as institutional funds are a type of pooled fund that is not publicly listed or ... | |
what types of commingled funds are there | types of commingled funds can include equity fixed income and alternative investment funds the last of these might have hedge funds derivative investments and private equity investments in its portfolio can anyone invest in a commingled fund normally no the typical investor is an institutional investor individuals usua... | |
where do i get information about a commingled fund | usually from your employer if your workplace retirement plan invests in commingled funds typically you won t find public sources such as newspapers providing information on them because they aren t publicly traded investment vehicles some investment companies may offer quarterly and annual reviews of performance the bo... | |
what is a commission | a commission is a service charge assessed by a broker or investment advisor for providing investment advice or handling purchases and sales of securities for a client there are important differences between commissions and fees at least in the way these words are used to describe professional advisors in the financial ... | |
what are commodities | commodities are raw materials used to manufacture consumer products they are inputs in the production of other goods and services rather than finished goods sold to consumers in commerce commodities are basic resources that are interchangeable with other goods of the same type the quality of a given commodity may diffe... | |
what is the relationship between commodities and derivatives | the modern commodities market relies heavily on derivative securities such as futures and forward contracts buyers and sellers can transact with one another easily and in large volumes without needing to exchange the physical commodities themselves many buyers and sellers of commodity derivatives do so to speculate on ... | |
what determines commodity prices | like all assets commodity prices are ultimately determined by supply and demand for example a booming economy might lead to increased demand for oil and other energy commodities supply and demand for commodities can be impacted in many ways such as economic shocks natural disasters and investor appetite investors may p... | |
what is the difference between a commodity and a security or asset | commodities are physical products that are meant to be consumed or used in the production process assets on the other hand are goods that are not consumed through their use for instance money or a piece of machinery are used for productive purposes but persist as they are used a security is a financial instrument that ... | |
what are the types of commodities | hard commodities are usually classified as those that are mined or extracted from the earth these can include metals ore and petroleum energy products soft commodities instead refer to those that are grown such as agricultural products these include wheat cotton coffee sugar soybeans and other harvested items | |
where are commodities traded | the major u s commodity exchanges are ice futures u s and the cme group which operate four major exchanges the chicago board of trade cbot the chicago mercantile exchange cme the new york mercantile exchange nymex and the commodity exchange inc comex there are also major commodities exchanges located around the world t... | |
what is a commodity futures contract | a commodity futures contract is an agreement to buy or sell a predetermined amount of a commodity at a specific price on a specific date in the future commodity futures can be used to hedge or protect an investment position or to bet on the directional move of the underlying asset many investors confuse futures contrac... | |
how a commodity futures contract works | most commodity futures contracts are closed out or netted at their expiration date the price difference between the original trade and the closing trade is cash settled commodity futures are typically used to take a position in an underlying asset typical assets include commodity futures contracts are called by the nam... | |
how to trade commodity futures | these days trading commodity futures online is a straightforward process that said you should do plenty of due diligence before jumping in here are a few steps to take to help you get started | |
when you start out try to use small amounts and only make one trade at a time if possible don t overwhelm yourself overtrading can cause you to take on far more risk than you can handle | the commodity futures trading commission cftc commodity futures contracts and their trading are regulated in the u s by the commodity futures trading commission cftc a federally mandated u s regulatory agency established by the commodity futures trading commission act of 1974 1the cftc regulates the commodity futures a... | |
what is a commodity trading advisor cta | a commodity trading advisor cta is an individual or firm that provides personalized advice regarding the buying and selling of futures contracts options on futures and retail off exchange forex contracts or swaps advisors who give such advice are required to be registered as a cta by the national futures association nf... | |
what s a commodity trading advisor | a commodity trading advisor or cta is a person or firm that advises clients in the use of derivatives as investments ctas are required to be registered by the national futures association the industry s independent self regulatory organization | |
what are futures contracts | futures contracts are a type of derivative they involve a standardized contract to buy or sell a certain security at a specific price and at a specified time in the future futures are used by investors to hedge the value of securities they have positions in and to speculate on price movements | |
what is the national futures association | the national futures association nfa is the derivative industry s sole self regulatory organization it was established by the commodity futures trading commission to conduct the registration of commodity trading advisors as part of its goal to protect the interests of the investing public it also monitors the actions o... | |
what is common equity tier 1 cet1 | common equity tier 1 cet1 is a component of tier 1 capital and comprises primarily of common stock held by a bank or other financial institution cet1 is a capital measure that was introduced in 2014 as a precautionary way to protect the economy from a financial crisis 1 banks are expected to meet the minimum cet1 ratio... | |
how are tier 1 capital and cet1 capital different | cet1 capital is one component of total tier 1 capital the other is known as additional tier 1 capital at1 at1 cet1 tier 1 capital | |
what is the minimum tier 1 capital a bank can have | the basel accords spelled out the minimum capital requirements for banks they must maintain a minimum capital ratio of 8 of which 6 must be tier 1 capital 11 | |
what does a low cet1 ratio mean | a low cet1 ratio implies an insufficient level of tier 1 capital in such a case a bank may not be able to absorb a financial shock and may need to be bailed out quickly in the event of a financial crisis the bottom linecommon equity tier 1 cet1 is a component of tier 1 capital covering bank holdings such as cash and st... | |
what is common law | common law is a body of unwritten laws based on legal precedents established by the courts common law influences the decision making process in unusual cases where the outcome cannot be determined based on existing statutes or written rules of law the u s common law system evolved from a british tradition that spread t... | |
what is a common size financial statement | a common size financial statement displays items as a percentage of a common base figure total sales revenue for example this type of financial statement allows for easy analysis between companies or between periods for the same company however if the companies use different accounting methods any comparison may not be... | |
what is a common size income statement | a common size income statement is an income statement in which each line item is expressed as a percentage of the value of revenue or sales it is used for vertical analysis in which each line item in a financial statement is represented as a percentage of a base figure within the statement 1common size financial statem... | |
how the common size income statement is used | generally accepted accounting principles gaap are based on consistency and comparability of financial statements a common size income statement makes it easier to see what s driving a company s profits the common size percentages also help to show how each line item or component affects the financial position of the co... | |
common stock is not just a piece of paper or these days a digital entry but a ticket to ownership in a company when you hold common stock you get to weigh in on corporate decisions by voting for the board of directors and corporate policies over the long term this type of equity can offer attractive returns but remembe... | the value of common stock issued is reported in the stockholder s equity section of a company s balance sheet common stock explainedcommon stock is primarily a form of ownership in a corporation representing a claim on part of the company s assets and earnings if you re a shareholder this makes part owner but this does... | |
what is preferred stock | preferred stock is a distinct class of stock that provides different rights compared with common stock while both types confer ownership in a company preferred stockholders have a higher claim to the company s assets and dividends than common stockholders 5 this elevated status is reflected in the name preferred stock ... | |
should a company not have enough money to pay all stockholders dividends preferred stockholders have priority over common stockholders and get paid first 5 for holders of cumulative preferred stock any skipped dividend payments accumulate as dividends in arrears and must be paid before dividends are issued to common st... | common stock and preferred stock trade on the open market investors can choose to purchase or sell either type of share however investors generally trade common stocks rather than preferred stocks due to their fixed dividends and lower risk profile preferred stocks typically have less price volatility and greater growt... | |
how to invest in common stock | stocks should be considered an important part of any investor s portfolio they carry greater risk than assets like cds preferred stocks and bonds however the greater risk comes with a higher potential for rewards over the long term stocks tend to outperform other investments but in the short term have more volatility 1... | |
how to invest in preferred stock | investors can trade for preferred stock just like common stock however because of how they differ from common stock investors need a different approach when investing in them researching the issuing company is essential investing in preferred stock from a shaky company is as risky as buying its common stock if the comp... | |
how do i use common stock to vote at company meetings | most ordinary common shares come with one vote per share granting shareholders the right to vote on corporate actions often conducted at company shareholder meeting 11 if you cannot attend you can cast your vote by proxy where a third party will vote on your behalf 12 the most important votes are taken on issues like t... | |
why is common stock called an equity | common stock represents a residual ownership stake in a company the right to claim any other corporate assets after all other financial obligations have been met a company maintains a balance sheet composed of assets and liabilities assets include what the company owns or is owed such as its property equipment cash res... | |
why do companies issue preferred stock | selling preferred stock like any other shares lets a company raise money by selling a stake in the business a company may do this to raise capital for business expansion debt repayment or to invest in new projects preferred stocks are less dilutive of company ownership since they do not come with voting rights 6 they o... | |
is preferred or common stock a better investment | each type has pros and cons common stock tends to offer higher potential returns but more volatility preferred stock may be less volatile but have a lower potential for returns 5 this suggests that long term investors who can handle greater volatility will prefer common stock while those who want to avoid such fluctuat... | |
are there other different types of stock | common and preferred are the two major types some companies issue different classes of stock or even types of common stock for example alphabet the parent company of google has two classes of common stock goog and googl 13the bottom linecommon stock as its name implies is one of the most ordinary types of stock it give... | |
what is communism | communism is a political and economic ideology that positions itself in opposition to liberal democracy and capitalism it advocates instead for a classless system in which the means of production are owned communally and private property is nonexistent or severely curtailed understanding communismcommunism is an umbrel... | |
why did communism fail | there s been extensive study of the reasons for communism s failure but researchers have pinpointed a couple of common factors that contributed to its demise the first is an absence of incentives among citizens to produce for profit the profit incentive leads to competition and innovation in society but an ideal citize... | |
what is an example of communism | an example of communism would be a commune where people live together and share responsibilities and possessions many of these communities function well but they tend to be small in scale | |
what countries are still communist | communism is the official form of government in china cuba laos north korea and vietnam these countries also abide by some capitalist principles however they re largely autocratic and they don t reflect marx s definition of the term 17 | |
what is the difference between communism and socialism | both communism and socialism advocate public over private ownership and they champion equality they seek to give power to the working class socialism is viewed as a more moderate ideology however unlike communism it permits the continued existence of capitalism in some parts of the economy and favors gradual change ove... | |
what is the community reinvestment act cra | the community reinvestment act cra is a federal law enacted in 1977 to encourage depository institutions to meet the credit needs of the communities where they are chartered including low and moderate income neighborhoods 1the cra requires federal banking agencies to assess how well each institution fulfills its obliga... | |
what are the u s fair lending laws | fair lending laws prohibit lenders from discriminating based on specific protected classes during any aspect of a credit transaction several statutes comprise federal fair lending laws and regulations including the 28 | |
what is redlining | redlining is the now illegal discriminatory practice of denying credit to residents of certain areas based on their race or ethnicity sociologist john mcknight coined the term in the 1960s to describe maps created by the home owners loan corporation a u s government agency that marked racial and ethnic minority neighbo... | |
what factors can lenders consider when making loans | lending institutions can only consider factors relevant to an applicant s creditworthiness their ability to pay it s illegal for lenders to consider factors that are unrelated to creditworthiness including the applicant s race color religion national origin sex marital status age and participation in public assistance ... | |
what is a comparable company analysis cca | a comparable company analysis cca is a process used to evaluate the value of a company using the metrics of other businesses of similar size in the same industry comparable company analysis operates under the assumption that similar companies will have similar valuation multiples such as ev ebitda analysts compile a li... | |
what is comparative advantage | comparative advantage is an economy s ability to produce a particular good or service at a lower opportunity cost than its trading partners comparative advantage is used to explain why companies countries or individuals can benefit from trade in the context of international trade comparative advantage refers to the pro... | |
why doesn t the world have open trading between countries when there is free trade why do some countries remain poor at the expense of others perhaps comparative advantage does not work as suggested there are many reasons this could be the case but the most influential is something that economists call rent seeking ren... | say for example the producers of american shoes understand and agree with the free trade argument but they also know that their narrow interests would be negatively impacted by cheaper foreign shoes even if laborers would be most productive by switching from making shoes to making computers nobody in the shoe industry ... | |
how do you calculate comparative advantage | comparative advantage is usually measured in opportunity costs or the value of the alternative goods that could be produced with the same resources this is then compared with the opportunity costs of another economic actor to produce the same goods for example if factory a can make 100 pairs of shoes with the same reso... | |
what is an example of comparative advantage | an interesting example of comparative advantages often arises for high powered executives who may consider hiring an assistant to answer their emails and perform certain secretarial functions the executive may even better at performing these duties than their assistant but the time they spend doing secretarial work cou... | |
what is a comparative market analysis | a comparative market analysis cma estimates a home s price based on recently sold similar properties in the immediate area real estate agents and brokers create cma reports to help sellers set listing prices for their homes and help buyers make competitive offers in addition you can perform your own comparative market ... | |
when a real estate agent or broker conducts a comparative market analysis they will create a report that details the findings there s no standardized cma report however it s important to note that some states have statutes that require specific information be included in cmas 1 | that said a cma typically includes cma vs appraisala cma is completed by a real estate agent the seller or the buyer using comparable homes to estimate a price this estimated price can then be used for negotiating a sales price an appraisal requires a state licensed and certified appraiser the appraiser compares homes ... | |
how to do a comparative market analysis | a cma involves much more than just comparing the prices of recently sold homes in the area here s a rundown of the basic steps for creating an accurate cma to set the right listing price or ensure a home you re interested in is a good deal the cma should consider the neighborhood s general quality for example it should... | |
is a cma as good as an appraisal | a comparative market analysis can reveal a property s fair price range however it is not considered by lenders or real estate experts to be as good or accurate a method as an appraisal by a licensed and certified appraiser | |
what does a cma include | a cma generally compares a home s location size age style materials and condition against similar homes sold within the last six months to arrive at an estimated price | |
what is the purpose of a cma | a cma allows sellers to establish a fair asking price it lets buyers see if the seller is asking a reasonable price for the home | |
what is the biggest difference between a cma and an appraisal | a comparative market analysis can be done by agents brokers buyers or sellers an appraisal can only be done by a licensed and state certified appraiser the bottom linein general the best comps are the ones that are the most similar to the home more recently sold with the fewest adjustments required depending on the mar... | |
what are compensatory damages | compensatory damages are money awarded to an injured party that compensate for damages injury or another incurred loss compensatory damages are awarded in civil court cases where loss has occurred as a result of the negligence or unlawful conduct of another party to receive compensatory damages the plaintiff has to pro... | |
what is the difference between compensatory damages and punitive damages | compensatory damages differ from punitive damages which may compensate over and above any loss or damage incurred and are meant to provide an incentive against repeating the act that caused the plaintiff s loss or damages cases related to compensatory and punitive damages are a major source of debate in the field of he... | |
what is the difference between compensatory damages and treble damages | treble damages are also a kind of punitive damage meant to dissuade others from committing the same offense often treble damages which indicate that a statute exists to award a plaintiff up to three times actual or compensatory damages are invoked when a defendant has purposefully or willfully violated a law | |
what is another word for compensatory | another word to describe compensatory damages is offsetting redeeming or remunerative | |
what is a compensatory activity | as it applies to the law compensatory activities are usually awarded in the form of monetary payments | |
what are the 3 types of damages | the three types of damages are economic damages non economic damages and punitive damages | |
what are general compensatory damages | general compensatory damages cover all non monetary damages when referencing an injury claim such as for pain and suffering | |
do compensatory damages include emotional distress | compensatory damages can refer to emotional distress including mental anguish and loss of enjoyment of life the bottom lineto receive compensatory damages the plaintiff has to prove that a loss occurred compensatory damages as the name implies hope to compensate for any damages whether physical emotional or mental they... | |
what is competitive intelligence | competitive intelligence sometimes referred to as corporate intelligence refers to the ability to gather analyze and use information collected on competitors customers and other market factors that contribute to a business s competitive advantage competitive intelligence is important because it helps businesses underst... | |
how competitive intelligence works | by definition competitive intelligence assembles actionable information from diverse published and unpublished sources collected efficiently and ethically ideally a business successfully employs competitive intelligence by cultivating a detailed enough portrait of the marketplace so it may anticipate and respond to cha... | |
why is competitive intelligence important | competitive intelligence is important because it provides actionable insights that can help businesses anticipate market changes understand competitor strategies identify opportunities and threats and make informed strategic decisions it ultimately enhances a company s ability to compete effectively in the market | |
how is competitive intelligence gathered | competitive intelligence is gathered through a variety of methods those methods include public sources websites press releases financial reports direct observation trade shows store visits surveys interviews social media monitoring and specialized tools and databases | |
how does competitive intelligence differ from market research | competitive intelligence focuses specifically on competitors and the competitive environment providing insights that can inform strategic decisions market research on the other hand is broader and typically focuses on understanding the market as a whole including customer needs preferences and market trends | |
how often should competitive intelligence be conducted | competitive intelligence should be conducted on an ongoing basis with continuous monitoring of competitors and the market regular updates such as quarterly reports are also essential to keep the strategic insights current it may also make sense to perform competitive intelligence analysis after major events or key happ... | |
what is a competitive advantage | competitive advantage refers to factors that allow a company to produce goods or services better or more cheaply than its rivals these factors allow the productive entity to generate more sales or superior margins compared to its market rivals competitive advantages are attributed to a variety of factors including cost... | |
how to build a competitive advantage | to build a competitive advantage a company must know what sets it apart from its competitors and then focus its message service and products with that difference in mind here are several strategies companies use to build a competitive advantage competitive advantage vs comparative advantagea firm s ability to produce a... |
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.