Finance

Definition Securitization is the process of pooling multiple financial products of the same class and then marketing them and then sell them to another financial institution. So, the securitization of assets follows the same logic. A bunch of the same financial assets are pooled together and converted into one marketable security. Now, these can be […]

Hedger A hedger is a person or a fund that hedges, basically. A hedge can be defined as protection against financial losses in the future. There are so many financial products that help hedge against any kind of financial loss. For example, a fund can hedge against inflation, which will reduce the value of the

What is Mortgage Underwriting? In simple terminology, mortgage underwriting can be defined as a risk assessment that is undertaken by the lender to assess the underlying probability of the debtor not honoring the particular loan. Before a loan is formally extended, the mortgage underwriter must ensure that the creditworthiness of a particular loan applicant is

What is Equity Underwriting? Underwriting services are offered by large financial institutions, like banks, insurance companies, or other investment houses, where they are supposed to guarantee payments in the case of any financial loss. The underwriter’s role here is to accept the financial risk when the party defaults. Therefore, underwriting services are considered intermediary-related services,

Definition Divestitures or divestment is commonly defined as the complete or partial disposal of an asset. There are multiple ways divestitures can happen. It really depends upon the preference of the company’s executives. It can be done through sale, closure, or bankruptcy declaration. There are many reasons why a company would divest. A company mostly

Definition: A strategic alliance is a partnership between two independent entities to undertake a mutually beneficial project, but, it also allows both entities to regain their independence. A strategic alliance is less binding than a joint venture as there is no legal binding agreement between the two entities. Also, no new legal entity is formed

Definition: A joint venture or JV is defined as a particular business arrangement where two or more parties agree to use their collective resources to set up a particular venture. This helps both parties or businesses collectively manage the challenges in their particular industry while also improving the chances of decreased losses. A joint venture

Definition: A stability strategy is defined as a business strategy adopted by a business to maintain its market share, current position in the market, and growth and Profit in the present market environment. The stability strategy is usually adopted by mature businesses in an established market that is the most risk to be disrupted by

Definition: A corporate spin-off can be defined as the creation of a new stand-alone business by selling or distributing shares from the existing business. The parent company will spin off a business if it believes the new business will be worth more independently. The Spin-off is also called star bust or spin out. The spin-off

The return on marketing investment- (ROMI) measures the efficiency of the marketing function. It’s used to assess the performance of the marketing function by measuring the change in the revenue with an increase in the marketing expenses. Effective marketing is expected to increase sales and direct the business on the horizon of exponential growth and