What is a Derivative Lawsuit?

A derivative lawsuit occurs when one or more shareholders sue a company on behalf of the company itself. The shareholders file a lawsuit against the company’s board of directors or executives because they think the directors or executives did something wrong that hurt the company. Why Shareholders File Derivative Lawsuits Shareholders file derivative lawsuits when…

Depreciation – What Happens When Things Lose Value

Depreciation means something loses its value over time. Think about a new car – it’s worth less money after you drive it for a few years. This happens to many things businesses own, from computers to factory machines. Types of Depreciation Physical Asset Depreciation When we talk about physical things losing value, we mean stuff…

The Depository Trust and Clearing Corporation (DTCC)

The Depository Trust and Clearing Corporation serves as the main organization that helps people buy and sell stocks and other investments in the United States. It started in 1972 and works behind the scenes to make sure money and ownership records move safely between buyers and sellers. Think of all the stocks that trade each…