Risk Management

Risk Management refers to the identifying, calculating, analyzing, and prioritizing of risks. When used here, risks mean the effect of uncertainty on objectives, as the ISO defines in its ISO 31000. These risks must then be dealt with in such a manner as to lessen the impact of them. This is done through deploying resources in order to monitor and [...]

Risk Management

S Corporation

S Corporation refers to the Subchapter S Corporation type of company filing which measures up to certain requirements set by the IRS Internal Revenue Service. This status provides a corporation which possesses a hundred or fewer shareholders all of the advantages of incorporation while also keeping the benefits of only being tax treated like a partnership. One of the many [...]

S Corporation

Debt Ratio

Debt Ratio refers to a highly favored financial ratio. This one measures the consumer or company’s debt leverage. This ratio is best explained as the ratio for all of the longer-term and shorter-term debt divided by all assets of the individual or enterprise. It is then expressed out in percentage or decimal format. Another way of stating it is the [...]

Debt Ratio

Itemized Deductions

Itemized Deductions refer to an amount of money that is subtracted off of an individual American’s adjusted gross income. These deductions are comprised of money the individuals spend on some services and goods that officially qualify during the tax year in question. It is the American IRS Internal Revenue Service which decides what deductions specifically will be permitted as outlined [...]

Itemized Deductions

Open Market Operations (OMO)

Open Market Operations are also called by their acronym OMO. These describe both the purchasing and selling of open market-based government securities. The Federal Reserve central bank of the United States has a committee which engages in these transactions with the goal of expanding or contracting the total quantity of money flowing through the banking system. When the Fed buys [...]

Open Market Operations (OMO)

Depository Bank

A Depository Bank refers to a facility like an office, building, or even warehouse that acts as a depository for safeguarding and storage purposes. This might be a bank, a vault, an organization, or even a financial institution which inventories and helps with the act of trading securities. The term also pertains to any depository institution which takes in financial [...]

Depository Bank

Revolving Credit

Revolving Credit refers to lines of credit that customers draw on and then make payments on to their creditors. In order to have such a facility, the debtor must pay a commitment fee. This enables them to utilize the funds on an as-needed basis. Such a facility is typically deployed for operating expenses. It would therefore vary every month according [...]

Revolving Credit

Wash Sale

The Wash Sale refers to an IRS Internal Revenue Service code rule that outlaws any taxpayers from utilizing loss sales on securities in what they cleverly call a “wash sale.” The rule essentially explains such a sale as any that occurs as the investor trades or sells securities at a loss within 30 days before or after this particular sale, [...]

Wash Sale

Forbearance

Forbearance refers to a debt default solution mostly utilized for student loan borrowers who cannot make consistent payments every month on their student loans. In some cases, a borrower may be able to qualify for a forbearance, or otherwise a deferment, on the federal student loans. This would help the borrower to postpone entirely (on a temporary basis) or even [...]

Forbearance

Home Equity

Home Equity refers to those assets which result from the home owner’s stake in the house itself. Calculating up the equity of the home is not difficult. One simply takes any remaining loan balances and subtracts them off of the market value of the property. It is very possible for the equity in a home to grow with time, in [...]

Home Equity