Busted convertible bonds are kinda like regular convertible bonds. But they’re different in one big way – they don’t have a good chance of being “converted” into regular company stock. Let’s break it down. What are convertible bonds? A convertible bond is a special type of bond. Companies sell these bonds to raise money. The…
A bust-up takeover, also called a leveraged buyout, is when a company buys another company using a lot of borrowed money (debt). After buying the company, the new owners sell some of the company’s assets to pay back the debt they took on to buy it. The company doing the takeover is called the acquiring…
Business liability insurance protects a company if it gets sued for something it did that caused harm to someone else. It pays for things like lawyer fees to defend the company in court and money the company might owe if it loses a lawsuit or agrees to a settlement to end the case. Different Kinds…
The Business Judgment Rule is a legal rule in business law. It helps protect company directors and executives when they make business choices for the company. As long as the directors and executives make careful decisions based on the right information, the Business Judgment Rule says courts should not question if the decision was right…
Business interruption insurance is a kind of insurance that helps protect a business if something bad happens that stops the business from running normally for a while. It gives the business money to make up for the money it loses during that time. Why Businesses Need It Businesses need this type of insurance because unexpected…
The business cycle is the way the economy of a country goes up and down over time. It has four main parts: growth, downturn, recession, and recovery. The economy is growing when companies are doing well and lots of people have jobs. People feel good and buy more things. This part is called an expansion…
Burn rate means how fast a company, usually a new startup, spends the money it has to pay for things and grow bigger. It’s a number that tells you dollars per month. If your burn rate is $50,000, that means your company is spending $50,000 each month. Knowing the burn rate is super important for…
The Bundesbank is the central bank of Germany. It was started in 1957. The job of the Bundesbank is to keep the value of money stable in Germany. This means it works to make sure prices don’t go up or down too fast. The Bundesbank is also part of something called the European Monetary Union…
BaFin is short for “Bundesanstalt für Finanzdienstleistungsaufsicht”. It is the main group that watches over money stuff in Germany. Banks, insurance companies, pension funds and other places that handle money have to follow BaFin’s rules. What Does BaFin Do? BaFin’s job is to make sure the money places in Germany are being careful with people’s…
Bunds are a type of government bond from Germany. The word “Bund” is short for “Bundesanleihen” which means “federal bonds” in German. Key facts about Bunds How Bunds are issued The German government issues new Bunds in two main ways: Through a group of banks The government picks a group of big banks to form…
