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What is Compound Interest?

Whenever a person takes out a loan, secures finance for a venture or refinances an asset, there is always a clause regarding the interest that the principal amount will accrue during the finance period. When the interest on the primary account is accrued and then added to the primary amount before the next interest is calculated, you are dealing with compound interest – In other words interest on interest. You are no longer working with just the primary amount and random interest. You’re dealing with an amount of money that is added to the primary fund and is then used as the basis of the next interest calculation.

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How Can I Buy Stocks Without a Stockbroker?

The moment you think about stocks and investments, you think about stockbrokers. This is because it is the easiest and mostly the safest way of purchasing stocks on the stock market. There are many advantages of having a stockbroker, but there are also some distinct disadvantages. If you only have a little money to invest, most stockbrokers won’t take on your portfolio because it would be financially non-viable for both parties. Using a stockbroker also means that you have to pay commissions on transactions and these can become quite hefty.

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What is a POD Account?

Thinking about what happens after we die might sound a bit morbid, but if we don’t do this it could mean that we create a lot of problems for those we love. Payable on death (POD) accounts are a good option to ensure that family can quickly access money if the worst happens to you. This type of service is free, and it just means that family members won’t have to deal with a lot of problems in order to get their hands on some cash for funeral expenses.

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What are Garnished Wages?

If you owe money to another it is sometimes possible for this to be deducted from your salary. Garnished wages refer to any money that is taking from your pay check for this purpose – it can also be deducted from other payments such as royalty checks. In most instances this situation will occur because a court has ordered it to be done; it could be to pay child support or to settle monies awarded by the court. If the payroll of a company receives an order to garnished wages then they must comply with this.

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What is a 501(c)3?

Not all corporations are created to make profit. There are some enterprises where the main goal is to provide some type of service to the public. This type of organization will use a 501(c)3 to set themselves up as a charity.  Once an entity has this 501(c)3 it means that they are then exempt from most federal income taxes. In order to become eligible for such status the organization will have to meet certain criteria set down in law. Once this status has been granted it means that the organization is a legal entity responsible to the public.

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What Is a Private Equity Firm?

A private equity firm specializes in high risk investments that can produce impressively high rewards. They deal in those assets that aren’t normally available to the public to buy. Such a firm is made up of a collection of individuals who have joined forces to invest in this type of asset. Those who manage the investment will be rewarded with a share of the profits and a management fee.

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What is a Leaseback?

A leaseback refers to a situation where we sell an asset to somebody else and then lease it back off them. This may seem like an odd thing to do but there can actually be a few advantages in doing this. For one thing, it means that you can still enjoy the benefits of this asset even though you don’t actually own it anymore. In a lot of situations having the use of something is a lot more important than actually having ownership of it.

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What Is a Balloon Payment?

Loans can be repaid in a number of different ways. The creditor might be expected to pay back the money in regular equal amounts over a certain amount of time until the debt is repaid. This is not the only way of doing things though. A balloon payment refers to a large lump sum that will be due at certain times during the repayment period. In a lot of instances this large payment will be made at the end of the loan.

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