Month: February 2020

A peer-to-peer (P2P) economy is a decentralized model whereby two individuals interact to buy sell goods and services directly with each other or produce goods and service together, without an intermediary third-party or the use of an incorporated entity or business firm. In a peer-to-peer transaction, the buyer and the seller transact directly with each other in terms of the delivery of the good or service and the exchange of payment. In a peer-to-peer economy, the producer is usually a private individual or independent contractor who owns both their tools (or means of production) and their finished product. read more

Predatory pricing is the illegal act of setting prices low in an attempt to eliminate the competition. Predatory pricing violates antitrust law, as it makes markets more vulnerable to a monopoly.

A peer-to-peer (P2P) economy is a decentralized model whereby two individuals interact to buy sell goods and services directly with each other or produce goods and service together, without an intermediary third-party or the use of an incorporated entity or business firm. In a peer-to-peer transaction, the buyer and the seller transact directly with each other in terms of the delivery of the good or service and the exchange of payment. In a peer-to-peer economy, the producer is usually a private individual or independent contractor who owns both their tools (or means of production) and their finished product. read more

Predatory pricing is the illegal act of setting prices low in an attempt to eliminate the competition. Predatory pricing violates antitrust law, as it makes markets more vulnerable to a monopoly.

The Chicago Mercantile Exchange (CME), colloquially known as the Chicago Merc, is an organized exchange for the trading of futures and options. The CME trades futures, and in most cases options, in the sectors of agriculture, energy, stock indices, foreign exchange, interest rates, metals, real estate, and even weather.

Deferred interest is when interest payments are deferred on a loan during a specific period of time. You will not pay any interest as long as your entire balance on the loan is paid off before this period ends. If you do not pay off the loan balance before this period ends, then interest charges start accruing.

Julian Robertson, known as the “Father of Hedge Funds” and the “Wizard of Wall Street” is a legendary investor. He is best known for founding Tiger Management in 1980. Robertson closed the doors at Tiger in 2000 and has since been active in mentoring younger hedge fund managers,  and philanthropic ventures focusing on higher education and medical research.

The five Cs of credit is a system used by lenders to gauge the creditworthiness of potential borrowers. The system weighs five characteristics of the borrower and conditions of the loan, attempting to estimate the chance of default and, consequently, the risk of a financial loss for the lender. The five Cs of credit are character, capacity, capital, collateral, and conditions.

Matching orders are opposite requests for a security or derivative at the same price. If one investor wants to buy a quantity of stock and another wants to sell the same quantity at the same price, their orders match and a transaction is made. The work of pairing these orders is the process by which exchanges match buy orders, or bids, with sell orders, or asks, to execute securities trades. Most securities exchanges match orders using computer algorithms. Historically, brokers matched orders through face-to-face interactions on a trading floor in an open-outcry auction. Since 2010 all major markets have transitioned to electronic matching. read more

A late fee is a charge a consumer pays for making a required minimum payment on a credit card after the due date. Late fees encourage consumers to pay on time and may be as high as $27 for the first late payment and $38 for a subsequent late payment. Some credit card issuers will waive the late fee the first time a consumer misses the minimum payment deadline; other credit card issuers do not charge any late fees at all, but only issue cards to consumers with very good to excellent credit—individuals who are unlikely to ever pay late. Still other cards offer no leniency and will charge a late fee even if a cardholder barely missed the payment deadline. read more