What is an Unquoted Public Company? An unquoted public company is a public company that is not listed on any exchange. Such a company might have previously traded on an exchange but demoted to an unquoted public company due to financial distress. An unquoted public company is otherwise called an unlisted public company. This status is attained by a ...

What is the KISS Principle?   The KISS Principle, also known as Ockham’s Razor, is an acronym for a popular maxim, “Keep IT Simple and Stupid” or “Keep IT Simple and Straightforward”. Restated, one should avoid complexity when undertaking any plan, design, or action, when possible.  Ockham's Razor is originally in Latin: "Numquam ponenda est plurita...

What is the Long-Run Equilibrium in a Perfectly Competitive Market? No perfectly competitive firm acting alone can affect the market price. However, the combination of many firms entering or exiting the market will affect overall supply in the market. In turn, a shift in supply for the market as a whole will affect the market price. Entry and exit t...

What is the United States Customs Service (USCS)? The United States Customs Service (USCS) was a federal government agency, established on July 31, 1789, following the American Revolutionary War. This agency was responsible for collecting import tariffs and other border security duties. For more than 100 years, it was the primary source of revenue o...

What is a Trust Indenture? A trust indenture is an agreement used during the signing of a bond contract between a bond issuer and a trustee that documents the terms and conditions governing the trustee's conduct as well as the trust beneficiaries' rights. The trust indenture represents the interests of the bondholder by underlining a set of rules an...

What is the Investment Advisers Act of 1940? The Investment Advisers Act of 1940 is a U.S. federal law that was drafted 11 years after the stock market crashed in 1929, and around the season of the Great Depression. This law describes the roles and responsibilities of investment advisors and advisers. This act came to light after the Securities and ...

What are Right-to-Work Laws? The right-to-work law is a law that states that workers have the right to work in workplaces without joining the union or being unionized. This law prohibits workers from being prevented from engaging in employment because they have refused to join the union or pay union dues. Hence, union membership is optional for empl...

What does it take to convert from S to C corporation status?The decision to become an S corporation is nothing more than a tax election. Therefore, if the entity meets the requirements to be an S corporation, the act of converting to a C corporation is very simple. To begin the conversion process, more than 50% of the corporate shareholders must vot...

What is Countercyclical?  Cyclicality of the fiscal policy simply refers to a change in direction of government expenditure and taxes based on economic conditions. These pertain to decisions by policymakers based on the fluctuations in economic growth. There are two types of cyclical fiscal policies - counter-cyclical and pro-cyclical. Counter-cycli...

What is a Back-End Ratio? The debt-to-income ratio, is also known as the back-end ratio is indicative of how much of a persons income monthly paid toward outstanding debts. Expenses such as child support, credit card payments, mortgage payments (insurance, taxes, interest, and principal) and other types of loan payments equal total monthly debt. Bac...