Cutting Prices vs Cutting Costs Cutting prices is the competitive strategy of reducing prices to introduce a new product, expand market share, or drive away competitors. Cutting costs refers to actions taken by a firm to cut expenses and increase profitability. Cost-cutting strategies are generally undertaken when a company is […]
What Is the Monetary Conditions Index (MCI)? The monetary conditions index (MCI) was created in the early 1990s to capture two significant monetary transmissions. It combines changes in the short-term interest rate and the effective exchange rate into a single variable or index to gauge the relative ease or tightness […]
Defeasing Loans and Bonds Defeasing outstanding loans or bonds is simply substituting collateral that is sufficient to meet all payments of principal and interest on the outstanding securities as they come due. In a contract, a defeasance clause is a provision that voids a bond or loan on a balance […]
What Is a Crossed Check? A crossed check with two parallel lines across it or in the upper left corner can not be cashed. It may only be deposited in the Payee’s account. A crossed check is one that has two parallel lines crossing it. The lines may either be […]
What Is Autotrading? Autotrading stocks and financial instruments is a method of entering and exiting trades using a program or platform that executes trading algorithms with pre-set rules. Autotrading is a pre-set trading plan where buy and sell orders are automatically placed based on an underlying algorithm or program. These […]
What Is an Open-End Mortgage? An Open-End Mortgage is an expandable loan that allows a borrower to access home equity appreciation for additional funds at a later date. It blends some features of a traditional mortgage with some advantages of a home equity line of credit or HELOC. An open-end […]