What is a Certified Financial Statement? A certified financial statement is a financial statement that has been audited and approved by an independent auditor. After a company prepares its income statement, cash flow statement and balance sheet, they are presented to a certified auditor who examines the financial statement to be sure they are accura...

What is Network Marketing? Network marketing is a form of marketing where the distributors of goods and services are independent agents. It is a business model that uses independent agents for sales, these agents often work from home and are required to build their sales force by recruiting other sales agents. The agents recruited are called down li...

What is a Possessory Lien? A possessory lien gives a creditor the authority to possess the property that is subject to the lien until the borrower has paid the subject debt or loan. A lien refers to a legal claim that a person has over somebody else's property. The lien allows the subject property so serve as security for the payment a debt. A lien ...

What is Cost of Carry? The cost of carry is defined as the costs that an investor incurs as a result of holding a position in the market. The expenses of holding an asset are called cost of carry, such expenses include storage expenses, insurance, interest costs, and others. Taking an investment position comes with a cost, some of these costs are ma...

What is the London Interbank Offer Rate? LIBOR is the acronym or short form of London Interbank Offer Rate. This refers to the international reference rate for unsecured borrowing over a short period in the interbank market. It serves as a standard for interest rates that are short-termed. It is used to price currency rate swaps, interest rate swaps...

What is a Credit Default Swap? A credit default swap is a form of credit derivative contract that allows the transfer of default risk of a credit loan between parties. Credit default swap is a swap where the credit exposure of fixed income securities and bonds can be transferred between parties. The buyer of a credit default swap makes payment to th...

How does Marketing Affect the Economy? Marketing decisions affect how resources are allocated or distributed throughout the system. That is, it determines who has access to and can obtain resources. Decisions, such as product development, pricing, promotion, affect the total productivity associated with a product. It affects the level of demand for ...

What is a Forward Dividend Yield? The Forward Dividend Yield is a projection or estimate or the company's annual dividend as a percentage of its existing stock price. The most recent dividend payment is used to measure and annualize the projected dividend of the year. You can calculate the forward dividend yield by dividing the projected annual divi...

What is Discretionary Fiscal Policy?  Discretionary fiscal policy concerns government taxation and spending that is not tied to mandatory payments or entitlements and is done to affect aggregate demand in the economy.  Keynesian economists believe that government intervention into markets in the form of discretionary spending and taxation is necessa...

What is a Currency Swap? In the world of finance, a currency swap can also be termed as a cross-currency swap. Its an interest rate derivative. A currency swap is known to have pricing associations with different interest rate swaps, foreign exchange, in addition to FX swaps. How Does a Currency Swap Work? As the name suggests, a currency swap refer...