When you check your credit report, you will see a list of these inquiries toward the end of your report. While all of the inquiries appear in a list together, they are actually divided into two types of credit checks: hard inquiries and soft inquiries. A soft inquiry, sometimes referred to as a “soft pull,” is made on your credit report whenever you check your credit report, a business checks your credit report for promotional purposes, or a business you already have an account with checks your credit report....

These broader stimulus efforts may include a variety of initiatives, including tax and fiscal policy changes, business tax credits, and more. What makes stimulus checks unique is that they’re given directly and immediately to taxpayers, often with few strings attached. Consumer spending often slows down during an economic crisis, and citizens may have trouble paying for basic needs like their mortgage, rent, or food. Stimulus checks are designed to increase consumer confidence and stimulate spending....

Whether an earnings surprise is positive or negative matters, as it can influence stock prices and trading activity. That’s important to understand if you hold stocks in your portfolio. Definition and Example of Earnings Surprise An earnings surprise is a positive or negative deviation from a consensus earnings estimate. Individual financial analysts put together earnings estimates ahead of earnings season. These estimates represent the analysts’ best guesses about a company’s valuation and growth potential....

Alternate name: Federal Tax Identification Number or Tax Identification NumberAcronym: EIN or TIN For example, say Subhash decided to open a specialty grocery store as a limited liability company (LLC). Upon registering his business with his state, Subhash also was required to apply for an EIN with the IRS. To do so, Subhash logged on to the IRS website and entered his personal and business information. Subhash then quickly received an EIN after the IRS validated his information....

Alternate name: expansionary gap Here’s an example. Suppose at full employment without inflation, the people in an economy demand 500,000 sweaters a year. Inflation occurs, then wages increase, so people now have more income. They demand 550,000 sweaters a year. The increase of 50,000 sweaters represents an inflationary gap. The increase in demand leads to new revenue and higher materials prices for the sweater makers—if they can meet the increase in demand profitably....

Raise equity capital Raise debt capital Insure bonds or assist in launching new products Engage in proprietary trading. Teams of in-house money managers may invest or trade the company’s own money for its private account. Offer advice or services for mergers and acquisitions Provide payment and transactional services Research and develop solutions to challenging financial issues For instance, suppose XYZ Manufacturing wants to sell $10 billion worth of bonds so it can build new plants in Asia....

These letters help eliminate concerns that unknown buyers won’t pay for goods they receive or that unknown sellers won’t ship goods that have been paid for. This allows companies (and individuals) to do business with confidence. Alternate name: Irrevocable line of creditAcronym: ILOC Letters of credit are often found in international trade, though they can also be used for domestic transactions. Irrevocable letters of credit cannot be changed or canceled without the permission of everybody involved (the buyer, the seller, and any banks involved), thus minimizing the risks that all parties take in the transaction....

Learn more about how to tell if a business is viable. What Is Business Viability? Business viability means that a business is (or has the potential to be) successful. A viable business is profitable, which means it has more revenue coming in than it’s spending on the costs of running the business. If a business isn’t viable, it’s difficult to recover. The business would need to increase revenue, cut costs, or both....

First, though, you’ll need to understand how this valuable credit card perk works. Definition and Example of Credit Card Trip Insurance? Credit card travel insurance, offered by many airlines and tour-focused organizations, protects travelers from the costs of unforeseen circumstances that may disrupt your travel plans. It is one of the most common perks among travel credit cards. There are three main types of trip insurance credit cards offer: interruption, trip cancellation, and delay....

Home insurance is a personal property insurance contract between you and an insurance company that protects your investment in your home, as well as your personal liability. You pay an agreed-upon amount of money (premium) to the insurance company in exchange for protection against the costs of disasters and accidental loss or damage to your home, premises, and anything on the property. Home insurance also provides liability coverage to you and family members living in the home....

JohnnyGreig / Getty Images Definition of Hypothecation Hypothecation is the act of pledging an asset as collateral to secure a loan. You don’t lose possession or ownership rights of the asset, but if you don’t make your loan payments on time, the lender may choose to seize the asset through repossession or foreclosure. Hypothecation is a standard requirement with mortgage loans and auto loans, in which your home and vehicle, respectively, act as collateral....

Alternate name: underwater on a mortgage loan, upside-down loan How Does Negative Equity Work? Let’s say you purchase a $315,000 home with a $300,000 mortgage and a down payment of $15,000. Five years into your 30-year loan, you’ve paid $6,000 of the loan’s principal. You owe the lender $294,000 in principal, and if your home is still worth $315,000, you have $21,000 in (positive) equity. But if, on the other hand, real estate values have decreased and comparable homes are selling for $270,000, you have negative equity....

As an example, if an invoice is dated April 1 and the terms state net 30, the payment is due on or before April 30. In this case, the vendor wants to be paid in full within 30 days. The vendor delivers a product or service first and then requests payment from the customer at a specific date. Net 30 always includes calendar days (in other words, business days, holidays, and weekends), not just business days, so make sure the contract with your customers makes that clear....

Learn how shale oil works, its pros and cons, and how it compares to crude oil. Definition and Example of Shale Oil Shale oil is the oil found in shale formations, and it comprises almost two-thirds of the onshore production of crude oil in the United States. As a result, the United States became the world’s largest crude-oil producer, according to the Energy Information Administration. One example of shale oil is the oil extracted from the Barnett shale in Texas....

You might recall that the Chairman of the House Ways and Means Committee requested copies of President Donald Trump’s tax returns from 2013 through 2018 from the IRS on April 3, 2019. The IRS appropriately responded that the Internal Revenue Code stood in the way of compliance. The Secretary of the Treasury responded to the request on May 6, stating that the Department of Justice had effectively declined, citing that violating the code lacked “a legitimate, legislative purpose....

Here are some examples of drivers with various characteristics and the amounts they might expect to pay for a year of premiums. Example Rates 25 to 60 Years Old: Good Driving Record, Liability-Only Coverage, Cruiser or Touring Motorcycle These variables set you up for the lowest motorcycle insurance costs. Drivers above the age of 25 with a safe driving record often get good prices. (Rates typically go down as you get older until you reach age 70....

Knowing the ins and outs of your card’s extended warranty plan can save you money on the cost to repair or replace broken items that wouldn’t otherwise be covered. But first, you need to understand how extended warranties work, some of the standard exclusions, and other details of these common card perks. What Is the Credit Card Extended Warranty Feature? In general, an extended warranty provides guarantees of repair or service of an item for a certain period beyond the original warranty....

The main difference between hourly and salaried employees is: Hourly workers are paid an hourly rate for each hour they work and are entitled to overtime pay if they work over 40 hours per week. Salary employees are typically not eligible for overtime pay, but company-provided benefits are often more substantial than those provided to hourly workers. Pay for Hourly Employees Hourly employees are compensated at a set hourly rate, which is multiplied by the hours worked during any given pay period....

Enterprise value is often used as an alternative to equity market capitalization. It is often part of the discussion of company mergers and acquisitions as a way to understand the value of the companies concerned. Learn more about enterprise value, why it matters to your investments, and how to calculate it. Definition and Examples of Enterprise Value Enterprise value is a calculation that theoretically represents the entire cost of a company if a single entity were to take it over....

The Dodd-Frank Act’s definitions for unfair, deceptive, and abusive acts and practices are: Unfair: An act is unfair if it’s likely to substantially harm customers, typically by making them lose money, and customers can’t reasonably avoid injury. A practice can be unfair if it puts consumers at substantial risk, too. The harm must also outweigh any potential benefits to consumers for the practice to be unfair.Deceptive: An act is deceptive if it misleads or is likely to mislead customers....