Margin serves as the good faith deposit that keeps trades on the exchange running smoothly. It is a set amount that you, as the client, must have in reserve to assure the firm and outside parties that it can back up the debt it may incur through trades and if the market drops. The margin call, in effect, is a handy tool the exchange can use that allows it to stay in good esteem, to keep things moving, and to act as the buyer to each seller and the seller to each buyer....

The Extended Benefits (EB) program is a government measure that adds 13 weeks of unemployment benefits beyond the 26 weeks normally available in most states. It’s meant to provide an extra safety net in states suffering from high unemployment, automatically kicking in for a state when a certain percentage of workers there claim unemployment benefits and turning off again when that percentage drops. But thanks to a dysfunctional “trigger mechanism,” the EB program has been prematurely shut down in 32 states, according to a report from the California Policy Lab, a nonpartisan research organization....

Nationwide stay-at-home orders became the norm in March after the U.S. government declared a national emergency and many states shut down nonessential businesses to stop the spread of the coronavirus. The pandemic and resulting shutdowns caused a violent economic downturn, with record-high job losses and unemployment levels, low consumer spending, falling home sales, and a crashing stock market. Just like that, a recession had taken hold, ending 128 months of economic expansion—the longest in U....

What is the Rule of 78? A mathematical equation often used to develop a business’s recurring billing options and expand their enterprise, the Rule of 78 is a misunderstood tool that entrepreneurs employ to take their companies to the next level. In short, the Rule of 78 demonstrates how much your company will generate in recurring sales each month if you sell a consistent amount throughout the year, then it uses that information to determine how much revenue you will earn for the entire year, as well as how your monthly recurring billing will increase as the year continues....

Here are several ways to make sure you’re getting paid for the goods and services you sell. Don’t Extend Credit Automatically to New Customers or Clients Small businesses, just like large businesses, need to have credit policies in place that provide guidelines for determining which customers or clients will be extended credit and on what terms. Learn the process for how to run a credit check before agreeing to lend anything to a client or customer....

What Is a Credit Card Penalty Interest Rate? A credit card’s penalty rate is a rate the credit card issuer charges you that’s higher than your regular APR. Not all cards have a penalty APR but, if yours does, you can find the percentage in the terms and conditions of your card’s fine print. It’s usually located in the rates table below the regular and cash-advance APRs How Do Credit Card Penalty Interest Rates Work If your card has a penalty APR, your issuer can apply the rate to your existing balance if you are more than 60 days late on a payment....

Alternate names: balanced funds, asset allocation funds How Hybrid Funds Work Hybrid funds usually hold a combination of stocks and bonds. The asset allocation can remain fixed or change over time, depending on the bond type. A fund will have a stated objective, such as aggressive, moderate, or conservative growth. This indicates both the level of risk and the type of growth the fund is likely to experience. It can make sense for many investors to buy mutual funds that focus on multiple objectives, asset classes, or security types rather than just one investment type....

Learn how Class B shares work, what makes them different from Class A and Class C shares, and whether they’re right for your portfolio. Definition and Examples of Mutual Fund Class B Shares Many mutual funds offer various classes of shares for purchase. They’re typically categorized as Class A, Class B, and Class C shares. Each class of shares follows the same investment strategy and holds the same portfolio of securities....

Alternative definition: Negative points, or lender credits, are the opposite of discount points, which are upfront payments by the buyerAlternate name: lender credits So what exactly does a “point” represent? One point is equivalent to 1% of the loan. For example, if a lender is giving a credit of $3,000 on a $300,000 loan, that would be one negative point. If you do decide to use negative points, the amount you are given (in the above example, it would be $3,000) will be listed in Section J of your loan estimate as a “lender credit....

There are many types of operating expenses, and most fall under selling, general, and administrative expense (SGA). Examples of operating expenses include: Phone linesOffice suppliesResearch and developmentUtility bills, such as internet or electricityRent and repair costs for non-production buildingsCompensation, payroll tax expenses, and benefits for non-production employeesContributions to pension plans for non-production employeesMarketing costs such as advertising, direct mail, and sales material How Operating Expenses Work Making sure that expenses don’t run too high is a key part of having a business that makes a profit....

Passive activity loss rules apply to: IndividualsEstatesTrusts (other than grantor trusts)Personal service corporationsClosely held corporations Passive activities fall into one of two basic categories: However, this isn’t quite as black-and-white as it sounds. For example, your activity would be considered passive if you purchase a home then rent it out, even if you find the tenant, manage the lease, and meet all other rules for material participation. Your activity would not be considered passive if you did the same thing but you also qualify as a real estate professional (meaning you materially participated in the business)....

For example, if you posted a purchase order with the wrong quantity of products in one period, you could undo that posting with a reversing entry at the beginning of the next period. You could correct the entry as, say, invoiced. Reversing entries can make it easier to record future transactions. For example if Company X wanted to make an adjustment for $600 in unpaid wages, it would debit that amount from the wages expense account and credit it to the wages payable account....

The entire value of the stock is considered ordinary income after RSUs have been transferred. The fair market value of the stock at the time of distribution becomes part of the employee’s wages for the year, and it’s reported on their W-2 form at tax time. If you don’t sell the shares right away, you’ll later owe capital gains tax on the amount of any gain (the sale price minus the fair market price when you received the shares)....

This type of loan can be hard to find because single-purpose reverse mortgages are only offered by some state and local governments and select nonprofit organizations. Further, eligibility is often limited to homeowners who meet certain income limits. For example, say you’re a senior homeowner with limited retirement savings and you need help making your property tax payments. If your local government offers single-purpose reverse mortgages, you could apply and request to use the funds strictly for your property taxes....

Smart contracts have many advantages, including features that make them transparent, efficient, and secure. Keep reading to learn more about smart contracts, how they’re used, and how you may use them in the future. Definition and Example of a Smart Contract A smart contract is computer code, often hosted by the Ethereum blockchain, that can store and automatically execute a financial or legal agreement. A smart contract may be a simple bit of computer code or a lengthy, detailed set of instructions comprising up to 24KB of information....

shapecharge / Getty Images For example, in August 2022 Ethan Allen announced a special dividend of 50 cents per share on top of its 32-cent regular quarterly dividend. The announcement came after a stellar quarter in which the company beat expectations. Why Companies Pay Special Dividends Companies may pay special dividends to reward shareholders when earnings are unexpectedly high or when they’re restructuring. In 2018, Australian mining company BHP announced it would distribute US$5....

Often, when federal laws are passed, they include funding for whatever must happen as a result. When they don’t, the programs they create are unfunded. But they are still mandatory. This is why they are known as unfunded mandates. Reducing federal funds to administer Food Stamps or other welfare programs, for example, creates unfunded mandates. State and local governments must still offer these programs at the level federal laws require....

What Causes a Check to Bounce It’s a good idea to understand how checks are processed and why it’s gotten so easy to write bad checks. First, everything is electronic, so things happen faster. Even if you write an old-fashioned check with pen and paper, the check might be converted to an electronic check when you hand it over to a retailer or your utility company. They don’t need to mail the check anywhere (which used to give you extra time to come up with the money)....

Doing so can help inspire you. And don’t be concerned if you don’t have a definitive answer to this question. After all, grownups change jobs and careers quite frequently. Choosing a Career Choosing a job or career is one of the most important decisions of your life. If you’re like numerous young people, you don’t know the answer to the big “What do you want to be when you grow up?...

“The subject matter is the biggest obstacle to creating a will,” Linda Amato, founder of Amato Law, told The Balance in a phone interview. “People don’t want to deal with their mortality, death isn’t a pleasant subject, and the process stirs up emotions about the relationships.” Let’s look in closer detail at the consequences of dying without a will, including what happens if you die without a will when you’re single or in a domestic partnership, as well as if one spouse dies without a will....