Credit report

A credit report is a summary of your financial history. Potential lenders will use your credit report to help them evaluate whether you are a good credit risk.

Chapter 11

A bankruptcy option in which a trustee is appointed to reorganize the bankrupt firm. Although the existing claims of security holders are likely to be reduced or replaced with different claims, it is expected that the firm will continue operating. Both creditors and owners must vote approval of the plan before the reorganization can be confirmed by court action and become effective. See also prepackaged bankruptcy, reorganization plan.

Case Study The turn of the century produced difficult business conditions for many companies, including one of America's technical giants, Polaroid Corporation. Founded by Edwin Land and George Wheelwright in 1937, Polaroid was best known for instant photography and glare-free sunglasses. During the 1960s and early 1970s the firm's common stock was part of the "Nifty Fifty," a collection of must-own securities for many portfolio managers and individual investors. Changing consumer preferences, a technological revolution in photography, debt incurred to fend off an attempted takeover, and faulty management decisions during the next several decades sent the firm's stock into a downward spiral until the shares traded for only 28¢ just prior to filing for Chapter 11 bankruptcy protection on October 12, 2001. At the time of the filing the company listed $1.81 billion in assets and $948 million in debts, including a $360 million bank loan that was due in one month. The stock traded as high as $60 per share in 1997. Polaroid's problems stemmed in large part from the increased popularity of digital photography, which captured substantial market share from the firm's products in instant photography. Other photographers discovered the widespread availability of one-hour processing was nearly as convenient and less costly than instant photography. Polaroid had taken on substantial debt in 1988 when it successfully fought a takeover attempt by Shamrock Holdings. The combination of large debt, high costs, and deteriorating market share doomed an American icon. At the time of the bankruptcy filing many analysts expected the firm to be liquidated and its assets sold piecemeal.

David L. Scott. Copyright © 2003 by Houghton Mifflin Company

Chapter 7

A bankruptcy option in which a bankrupt firm is liquidated after the courts have determined that reorganization is not worthwhile. A trustee is charged with liquidating all assets and distributing the proceeds to satisfy claims in their order of priority. In Chapter 7 bankruptcies the creditors often receive a fraction of the value of their claims and the stockholders receive nothing.

Broker

A broker is a person who is executes a trade order for a customer and charge the  customer some percentage for the work. The middle man could be seen as a broker because he is between the buyer and the seller, he closed the deal and charge a percentage or a price commission.

borrow

To borrow is to ask for a loan or some amount of money from another person with the promise to pay the money back. Sometimes the promise could come with an agreement for and interest charges, depending on the loaner, different loaners charge different level of APR percentage interest, this charges are usually based on credit report.

A bad debt

A bad debt is a money owned to a creditor that could not be repayed. A debt is considered bad when the creditor has made all types of way allowed by law to get the money back but are on unsuccessful.

What is annuity

annuity is a form of payment made to a person usually a retiree that is scheduled for a particular time usually monthly or yearly, the payment may be a long term or a short term process up until lifetime.

President Obama Speech about bp

     Yesterday president Obama addressed the nation about how he will deal with the oil leak. The disaster has begun for months now and it has been a major test for the office of the president, many has used this opportunity to criticize the president on how he is able to handle situations, a lot of this offensive words came from republicans who are ready to do anything to make the democrats look as bad as they did when the bush era was in government. The president promised to take action although he does not know where to start or how things will play out but he promise that the clean up will continue and BP will close the oil drilling in the golf of Mexico, he also mentioned that it is time for America to tap into our rich natural oil and that he will make sure that all the businesses affected are compensated. We believe that the president did what he could to please the people of America, but in a nation where every one has something to say and we have this motion of dislike for some reason that aren't partaking to the problem being solved, in that case it will be a hard job for Mr president to get over, infant this may cost him the reelection, we all know how the republican love to hang on to negative ads, it will be easy to foresee this type of campaign for the next presidential election.