Business is war.
Borrowed reserves happen when banks in the United States need more money. They go to the Federal Reserve Bank and borrow some for a little while. This helps them have enough cash on hand. It’s a short-term loan to keep things running smoothly. Why Banks Borrow Reserves Banks need to keep a certain amount of…
A BORDEREAU is a special report that insurance companies make. It shows the history of an insurance policy. The report lists all the losses and how much the insurance company had to pay out. It also shows how much money the person buying the insurance paid to the insurance company. This amount is called the…
A book entry security is a type of debt or stock that exists only in electronic form. There are no paper certificates or physical documents to prove ownership. Instead, all the details about who owns the security are stored digitally. How book entry securities work In the old days, when someone bought a stock or…
Bonds with warrants are a kind of bond that comes with a special bonus. When a company sells these bonds, they include “warrants” as an extra. Warrants are kind of like a coupon that lets you buy more of the company’s stock later on, if you want. These warrants can sometimes be split off from…
A bond swap spread is extra money that a company pays when they borrow money. Companies borrow money by selling bonds. Bonds are like IOUs. The company sells the bond and promises to pay back the money later, plus interest. The interest rate a company pays on their bonds is based on something called the…
The bond market is a place where people buy and sell bonds. Bonds are a type of investment. When you buy a bond, you are lending money to a company or government. They promise to pay you back the money you lent them plus interest. There are different kinds of bonds: The bond market is…
Bollinger Bands are a tool that stock traders use. They help show how stock prices go up and down. The bands use math to make three lines on a chart. The middle line is a moving average. This is the normal price over the last 21 days, for example. The top and bottom lines go…
A boiler room is a place where people use phones to trick other people into buying bad investments. These investments are usually very risky or fake. The people who work in boiler rooms are called brokers or salespeople. Boiler rooms are sometimes called bucket shops. They are set up quickly with only a little bit…
The psychology of consumption examines how people’s thoughts, feelings, and behaviors affect their buying and using of things. It tries to understand what motivates people to acquire things and why they choose certain things over others. How ads work Ads try hard to make people want to buy things. They show things great like they…
Blue Sky Laws are special rules in the United States that each state makes. These laws try to keep people safe when they put their money into investments like stocks or bonds. The name “Blue Sky Laws” comes from an old saying. A long time ago, some sneaky salesmen tried to sell fake stocks to…
