Ledger Balance

Ledger Balance vs Available Balance – What’s the Difference?

What Is a Ledger Balance? A ledger balance is usually computed by a bank at the end of each business day.  It includes all withdrawals and deposits to calculate the total amount of money in a bank account. In many cases, it is also the opening balance in the bank […]

Flotation Costs

Flotation Costs Definition – How to Calculate – Examples

What Are Flotation Costs in Finance? Flotation costs are non-recurring expenses that are paid to third parties to facilitate the issuance of new securities in the market. Flotation costs are incurred by publicly-traded companies when they issue new stock.  They incur expenses, such as underwriting fees, legal fees, and registration […]

Time in Force

Time in Force – What is Time in Force in a Stock Trade?

What is Time In Force in Stock & Options Trading? Time in force is a special instruction used when placing a stock or options trade.  It specifies how long an order will remain active before it is executed or expires. These instructions are especially important for active traders and allow […]

Reverse Merger

Reverse Merger Definition – Explanation – Example

What is a Reverse Merger? A reverse merger occurs when a smaller private company becomes a public company by purchasing control of a larger public company. The shareholders of the private company usually receive large amounts of ownership in the public company and control of its board of directors.  Once […]

Financial Intermediaries

Financial Intermediaries – What Is a Financial Intermediary?

Financial Intermediaries – Financial Intermediary Definition A financial intermediary is an entity that acts as the middleman between two parties in a financial transaction.  Intermediaries include commercial banks, investment banks, mutual funds, or pension funds. Financial intermediaries provide a middle ground between two parties in any financial transaction. For example, […]

QTIP Trust

QTIP Trust – Qualified Terminable Interest Property Trust

What Is a QTIP Trust – Qualified Terminable Interest Property Trust? A QTIP Trust is a qualified terminable interest property trust.  It enables the grantor (or creator) to provide for a surviving spouse.  Additionally, it allows for control of how the trust’s assets are distributed once the surviving spouse dies. […]