What is Private Placement Financing? A private placement refers to a capital raising event which includes selling securities to a really small number of select visitors. Large banks, insurance companies, pension funds, and mutual funds are the various investors that are involved in a private placement. A private placement differs from a public issue...

What is a Minsky Moment? Minsky Moment is named after Hyman Minsky, an economist who argues that markets (particularly bull markets) have innate characteristics of being unstable. The bull market refers to a period of time in which the market experiences a sudden increase. Minsky moment refers to a period of time when there is a sudden rise or major...

What is Accounts Receivable Conversion? An accounts receivable conversion (ARC) is a method through which paper checks are converted to electronic payments using the Automated Clearing House (ACH). Checks that a company receives in exchange for an account receivable is electronically scanned and then changed to an electronic payment. ARC is mostly u...

What is the Communication Process? Two primary models exist to explain the communication process. One model, known as the Transactional Model, explains communication as a transactional process with actions often happening at the same time. The other is the Constructivist Model, which sees the communication process as more fluid.  What is the Transac...

What is the Scope of Discovery in a Civil Lawsuit? A party is permitted to seek evidence that is relevant to the dispute. Basically, the evidence requested through discovery must have a tendency to lead to evidence that may be relevant and admissible at trial.  What is relevant evidence in a civil trial? The relevancy standard is construed very broa...

What is a Mortgage-backed Securities Clearing Corporation? Mortgage-Backed Securities Clearing Corporation is an organization that has the responsibility of overseeing transactions relating to mortgage-backed securities. MBSCC is an organization certified and recognized by the Securities and Exchange Commission (SEC). This organization confirms, pos...

What is an Adjusted Basis? Adjusted Basis is often used for taxation and accounting purposes. It is the measure of an asset's net cost after tax deductions or after it has been adjusted for tax purposes. The adjustment basis is calculated after certain modifications have been made to the cost of assets or goods. These modifications (adjustments) mig...

What are the rights of a holder in due course if the underlying transaction is a consumer transaction? There is a broad exception to the heightened rights afforded a holder in due course if the instrument is issued pursuant to a consumer transaction. This situation generally arises when a consumer of a good signs a note promising to pay the debt ari...

What is an Investment Portfolio? A portfolio refers to a collection of investment tools or financial instruments possesses by an individual investor, a company or a financial institution. There are varieties of investments and assets that make up a portfolio, these include cash equivalents, bonds, stocks, currencies, mutual funds, closed funds, exch...

What is Bootstrapping? Bootstrapping refers to a situation whereby an entrepreneur starts a small business and develops it into a company using the capital at their disposal without relying on other external sources of finance. An individual is referred to as bootstrapping when he uses his personal finances or operating revenues generated from a new...