An airball loan is a type of mortgage where the monthly payments are not large enough to cover the interest and principal. This results in the outstanding balance on the loan increasing each month, which is also known as negative amortization. Airball loans can be risky for both borrowers and lenders because if the property …
Anguilla is a British overseas territory in the Caribbean, one of the most northerly of the Leeward Islands in the Lesser Antilles. The territory consists of the main island of Anguilla, approximately 16 miles (26 km) long by 3 miles (5 km) wide at its widest point, together with a number of much smaller islands …
Anti-dilution is a type of provision in an equity financing agreement that protects investors from downward price adjustments. When a company raises money through the sale of equity, the price per share is set at the time of the transaction. However, if the company subsequently raises additional funds through the sale of equity at a …
An apostille is a certificate issued by a competent authority in one country to authenticate documents for use in another country. The certificate is attached to the document to confirm its authenticity.
The Articles of Association are the governing document of a company that sets out the rules and regulations for how the company is to be run. The articles are filed with the Registrar of Companies and are binding on all shareholders of the company. They include provisions relating to the management of the company, share …
An asset is anything that can be used to produce economic value and generate benefits. It may be tangible, like a factory or piece of land, or intangible, like a patent or copyright. In accounting, assets are divided into two broad categories: current assets and non-current assets. Current assets are those that are expected to …
An audit is the process of examining an organization’s financial statements to ensure that they are accurate and comply with generally accepted accounting principles. The auditor will also assess the internal controls of the organization to ensure that there are adequate safeguards in place to prevent fraud and errors.
Bank secrecy is a legal principle that protects the confidentiality of banking information. It is based on the principle of customer privacy, which is enshrined in banking regulations. Under bank secrecy, banks are not required to disclose information about their customers’ accounts or transactions to third parties, unless required to do so by law. The …
A basis point is a unit of measurement used in finance to describe the percentage change in the value of a financial instrument. One basis point is equal to 0.01% or 1/100th of one percent. For example, if the interest rate on a loan increases from 5% to 5.01%, that is a 1 basis point …
A bearer share refers to a physical stock certificate that is issued without the name of the owner being noted on the certificate. Bearer shares can be transferred simply by physically delivering the stock certificate to the new owner, without the need for any formal documentation or transfer agent involvement.
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