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Intercompany loan definition

Accounting Tools

Related AccountingTools Courses Business Combinations and Consolidations Corporate Cash Management Corporate Finance When an intercompany loan is created, it should be fully documented, including the amount of the interest rate to be charged and principal repayment terms.

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Issuance costs definition

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Issuance costs include audit fees, investment banking fees, legal fees, marketing expenses, and Securities and Exchange Commission (SEC) registration fees. In addition, the board hires an audit firm to conduct an audit of its financial statements, for which the fee is $50,000.

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Classified stock definition

Accounting Tools

Related Courses Corporate Finance How to Audit Equity What is Classified Stock? The charter and bylaws of a corporation contain the specific privileges accorded to each type of stock. Classified stock is a type of common stock that has special privileges, such as enhanced voting rights or dividend rights.

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Line of credit definition

Accounting Tools

Related Courses Corporate Cash Management Corporate Finance Treasurer's Guidebook What is a Line of Credit? A line of credit is an agreement between a lender and a borrower to issue cash to the borrower as needed, not to exceed a certain predetermined amount.

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Crowdfunding definition

Accounting Tools

Related Courses Corporate Finance Crowdfunding What is Crowdfunding? Crowdfunding is a business financing tool under which a business obtains a small amount of funding from individual investors, but does so from a large number of investors. The result is a modest total amount of funding.

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Bond covenant definition

Accounting Tools

Related Courses Corporate Cash Management Corporate Finance Treasurer’s Guidebook What is a Bond Covenant? A bond covenant is a legal agreement between the issuer and purchaser of bonds. In it, the issuer commits to avoid certain actions that might reduce its financial condition over the term of the associated bonds.

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Working capital loan definition

Accounting Tools

Related Courses Crowdfunding Corporate Finance Treasurer's Guidebook Working Capital Management What is a Working Capital Loan? A working capital loan is intended to finance the day-to-day operations of a business, paying for such short-term investments as accounts receivable and inventory.