Debt/Equity Swap Explained: Benefits and Impact on Bankruptcy
A debt/equity swap is a corporate restructuring in which a creditor’s claim (a loan, bond, or other debt instrument) is cancelled or reduced in…
Discretionary Account: Definition, Examples, Pros & Cons
A discretionary account is an investment account in which an investor gives an authorized broker or manager the power to place trades without asking…
Debt-to-Equity (D/E) Ratio Formula and How to Interpret It
• Definition: The debt-to-equity ratio compares a company’s total liabilities (what it owes) to its shareholders’ equity (the residual interest of owners after liabilities…
Discretionary Investment Management Definition, Benefits & Risks
Discretionary investment management is an arrangement in which a professional manager is authorized to make buying and selling decisions for a client’s account without…
Discretionary Expense Definition, Examples, and Budgeting
• Definition: A discretionary expense is a cost that is not required for basic living or essential business operations. In other words, it’s spending…
Debt: What It Is, How It Works, Types, and Ways to Pay Back
• Debt is an obligation a borrower accepts to receive funds now and repay the lender later, usually with extra payment called interest. It…
Discrete Probability Distribution: Overview and Examples
A discrete probability distribution describes a random variable that can take on only countable values (for example: 0, 1, 2, … or a short…
Debt-to-Capital Ratio: Definition, Formula, and Example
• The debt-to-capital ratio is a simple leverage metric that shows the share of a company’s capital structure financed with interest-bearing debt. It frames…
Debt Issue: Definition, Process, and Costs
• A debt issue is a contractual borrowing arrangement in which an entity (the issuer) raises money by selling a debt instrument to investors…
Discount Rate Defined: How It’s Used by the Fed and in Cash-Flow Analysis
This explainer covers the two distinct meanings of “discount rate”: (1) the interest rate the U.S. Federal Reserve charges banks for short-term loans via…