Automatic proportional reinsurance is a kind of deal between two companies. One company is called an insurer and it sells insurance to regular people. The other company is called a reinsurer and it helps out the insurer if a whole bunch of bad stuff happens and the insurer has to pay lots of money. How…
Automatic nonproportional reinsurance is a type of insurance that one insurance company buys from another insurance company. It’s a way for the first company (called the “insurer”) to protect itself in case a lot of the people or businesses it insures have really big losses all at once. Here’s how it works: The two insurance…
Automatic coverage is a special type of insurance contract. It’s a way for people and businesses to stay protected without worrying about their insurance falling behind. How Automatic Coverage Works Here’s the gist – when you have automatic coverage, any time you get new stuff or your property value goes up, your insurance policy automagically…
B2B stands for “business to business.” It’s when companies buy and sell things to each other using the internet. They don’t sell this stuff to regular people like you and me. Only to other businesses. It’s a really big deal. We’re talking trillions of dollars. Way more money than what companies sell to normal folks….
The Automatic Clearinghouse, or ACH for short, is a way for banks and businesses to move money around electronically in the United States. It’s a super important part of how money flows through the economy. ACH makes it possible to do things like: ACH is run by an organization called Nacha (previously NACHA—National Automated Clearing…
Automated Screen Trading is a way to buy and sell stuff like stocks, bonds, foreign money, gold, and oil using just computers. You don’t need people in a room yelling and waving papers anymore. The computers take care of everything. How it works Automated Screen Trading uses special computer programs and networks to handle all…
Authorized capital is the maximum number of common stock shares a company can issue. The company’s articles of incorporation set this number. If the company wants to issue more shares than authorized, it must change its articles first. Some call it authorized share capital, nominal capital, or registered capital. What’s the Point of Having Authorized…
Authorization risk is a big problem for companies. It occurs when employees do something they’re not allowed to do, which can get the company in trouble. See, companies have rules, and employees need to follow them. But sometimes, an employee doesn’t. They might sign a contract for the company without permission or promise the company…
Autarky is a fancy word for a country that doesn’t trade much with other countries. It means the country makes most of the stuff it needs inside its own borders. They don’t buy or sell a lot with the outside world. Saying No to Trade In an autarky, the government puts up roadblocks to trade….
An Aufsichtsrat is a group of people who watch over a company in Germany. They make sure the company is doing what it should. They are like the parents of the company. The parents set rules. The parents check that the kids follow the rules. Who is in the Aufsichtsrat? The Aufsichtsrat has some important…
