What Is A Hostile Takeover

But if the target company’s leadership isn’t receptive to a sale, the acquiring company would go directly to the shareholders, usually with a tender offer, or an offer to purchase shares at a premium. When they purchase enough shares to have a controlling interest in the company, the hostile takeover is successful. A famous example of a tender offer took place in 2010 when the French biotech company Sanofi-Aventis offered to purchase the U....

January 2, 2023 · 3 min · 606 words · Robert Vega

What Is A Maxed Out Credit Card

When Is a Credit Card Maxed Out? A maxed-out credit card is at, very near, or even over its credit limit. For example, if your credit limit is $1,000 and your credit card balance is $1,000, by definition, your credit card is maxed out. If you don’t pay your balance down before finance charges are applied to your account, the added interest could push your balance the credit limit, resulting in a credit limit fee....

January 2, 2023 · 3 min · 528 words · Melissa Kirch

What Is A Plaintiff In A Lawsuit

The other party in a civil lawsuit is the defendant or respondent (the one who responds to the suit). The defendant is the person being sued or the person against whom the complaint is filed. Learn more about how a plaintiff files a lawsuit and their role in a civil court case. What Is a Plaintiff in a Lawsuit? Most business litigation deals with civil law—that is, one party bringing a lawsuit against another party (a plaintiff bringing a suit against a defendant)....

January 2, 2023 · 3 min · 529 words · Darla Moore

What Is A Predatory Loan

While the specific terms vary by the loan and lender, predatory loans are generally pushed through misleading mail, phone, TV, or door-to-door sales tactics known as “predatory lending” practices. These are aggressive bait-and-switch tactics that lenders, real estate brokers, contractors, or even lawyers knowingly engage in to lead borrowers into a transaction they didn’t expect or agree to, and can’t afford. How Predatory Loans Work A typical predatory loan benefits the lender at the expense of the borrower....

January 2, 2023 · 5 min · 906 words · Jason Richardson

What Is A Preferred Provider Organization Ppo

Such a plan creates a win-win situation for both the hospitals and the patient. The insurance provider sends more customers to the in-network hospitals, and the customers receive more affordable treatment. Most PPO plans have a deductible, which is a yearly fixed payment you make for health care services covered until your plan starts offering cost-sharing benefits. For example, if you choose a PPO plan with a $1,000 deductible, you pay for medical expenses until the bill reaches $1,000....

January 2, 2023 · 2 min · 411 words · Shemika Schmidt

What Is A Reverse Mortgage

With a reverse mortgage, your loan balance goes up as you receive payments, while a regular mortgage balance goes down as you pay it off. Reverse mortgage lenders add interest to your balance on a monthly basis. There are also closing costs, which can make borrowing a reverse mortgage more expensive. Repayment of a reverse mortgage is delayed as long as you live in the home and meet the loan’s terms....

January 2, 2023 · 5 min · 942 words · Shirley Perry

What Is A Roth Ira Cd

How a Roth IRA CD Works You can’t make contributions to a Roth IRA account if you earn $144,000 or more as a single filer or $214,000 or more if married filing jointly in 2022, but these limits tend to increase annually. They go up to $153,000 and $228,000 for the 2023 tax year. The longer the term of the CD, the higher the interest rate it will generally pay. But committing to a five-year Roth IRA CD instead of a one-year CD means that your money is locked up for a longer period of time....

January 2, 2023 · 3 min · 618 words · Harold Timme

What Is A Stock Market Rally

According to the U.S. Securities and Exchange Commission, a bear market occurs when a broad stock market index declines by 20% or more over at least two months. Rallies of various durations can occur before, during, or after even the most severe of bear markets. For example, ahead of the infamous 1929 stock market crash, the U.S. experienced a rally. As the economy crumbled throughout that year, selling pressure in the market reached a fever pitch by mid-October....

January 2, 2023 · 5 min · 917 words · Crystal Tran

What Is A Subprime Auto Loan

Credit scores are perhaps the most important factor in getting approved for an auto loan. The higher your credit score, the lower your interest rate. But the lower your credit score, the higher your interest rate. The average APR on a car loan for a new car for someone with prime credit was 3.65% to 4.68% as of the first quarter of 2020. In contrast, the average APR for someone with subprime credit was 11....

January 2, 2023 · 3 min · 526 words · Eddie Jules

What Is A Tax Refund

For example, Jasmine works a salaried position as a digital marketer. Her employer withholds a portion of her paycheck for tax purposes. After Jasmine files her tax return in April, she learns that she has overpaid $1,000 in taxes. Jasmine is reimbursed via a tax refund in the form of a check for $1,000. How Tax Refunds Work When an employer pays an employee, they withhold a portion of the employee’s gross salary for income taxes....

January 2, 2023 · 3 min · 576 words · Paul Sword

What Is A Title Search

“A title search also ensures there are no claims or liens on the property that need to be addressed before the sale,” Kukwa said. That can include unpaid property taxes, association fees, bills for home improvement projects, and other types of credit or loan defaults that could become the buyer’s responsibility if they are not identified prior to the sale. How Does a Title Search Work? If you need a mortgage to finance a home purchase, the lender will almost certainly require a title search....

January 2, 2023 · 4 min · 702 words · Robert Centini

What Is An Agent Bank

Alternate name: Agency bank For example, agent banks can help businesses gain access to multiple funding sources for expansion or to be able to offer services they could not on their own. Businesses can also consult agent banks to arrange securities transactions. Financial institutions, on the other hand, may use agent banks to make their services more accessible to customers who may not live near a local branch or be able to visit during regular banking hours....

January 2, 2023 · 5 min · 924 words · Ferdinand Mabry

What Is An Aggressive Growth Mutual Fund

A growth stock is an equity investment in a company that is expected to grow at a faster rate compared to the overall stock market. Aggressive growth is like an intensified, greater growth-oriented version of the general growth investment strategy. How Do Aggressive Growth Mutual Funds Work? Aggressive growth funds generally work the same way any other mutual funds work. The fund managers select the investments and the way they are allocated to best mirror the fund’s intent....

January 2, 2023 · 3 min · 636 words · Christopher Borden

What Is An Index Option

An index that tracks a group of securities like stocks, often with factors such as their industry or size. And options allow investors to buy or sell the right to buy or sell at a set price. Learn more about the combination of the two, an index option, works and how you can use index options in your investment strategies. Definition and Example of an Index Option An index option is an options contract based on an entire index, like the S&P 500 or the Dow Jones Industrial Average, instead of a single stock, like Coca-Cola or Disney....

January 2, 2023 · 3 min · 519 words · Michael Tam

What Is An Insurance Deductible

You’ll have to come up with your part of the bill before a claim is paid. Once you pay it, the insurance pays the rest of the claim up to the policy limits and sends the money to you or the people who are owed. Suppose you backed your car into one of the light posts in the mall parking lot and caused $1,000 worth of damage to your car....

January 2, 2023 · 5 min · 1002 words · Mildred Imperato

What Is Bank Credit

SDI Productions / Getty Images Imagine you want some cash to cover kitchen remodeling. You find a lender you like and apply for the bank credit. The lender approves you for $30,000. This means it may lend you up to $30,000, but you don’t have to borrow the full amount. If your kitchen remodel will cost $20,000, this is great news because you’ll be able to pay for it completely with the credit....

January 2, 2023 · 3 min · 565 words · Sylvia Lucero

What Is Business Credit

A business credit report is generated with a credit score based on payment history, debts, and credit utilization, as well as general information about the business and information available in public records. For example, if your business needs more working capital to run its operations, you may consider applying for a cash flow loan. When you apply for this loan, lenders will look at your business credit for reference on your business’s finances as part of the application process....

January 2, 2023 · 3 min · 534 words · Adam Johnson

What Is Conditional Loan Approval

into the house-buying hunt. Yet there’s an even better position to be in as a borrower when you enter the real estate market, and that’s conditional approval. A conditional loan approval functions similarly to a preapproval on a home mortgage; however, it’s even better for the borrower. An underwriter reviews all mortgage documentation before sending an applicant a conditional loan approval. This carries far more weight, showing that the borrower is farther along in the mortgage approval process....

January 2, 2023 · 3 min · 601 words · Nancy Monteagudo

What Is Customer Acquisition

Depending on the type of business, a CEO may aim for customer acquisition via an immediate transaction or through lead acquisitions. In an immediate transaction, a customer engages with a product or service, then buys it practically on the spot. For example, an e-commerce dress business might be chasing an immediate sale when it advertises a product on Facebook and when it targets consumers who are currently searching for those dresses....

January 2, 2023 · 5 min · 856 words · Christopher Procter

What Is Failure To Deliver

Naked short sales and selling an asset without borrowing it first are two of the leading causes for failures to deliver. In the case of naked short sales, a failure to deliver can have a compounding effect. For example, imagine that you arranged to purchase an asset on April 26 and take delivery of it on April 27. You then contracted to sell it to another investor on April 27 at a higher price than you paid....

January 2, 2023 · 3 min · 584 words · Gertrud Brown