Glossary
The right of the lender, in the case of borrower default, to declare all of the borrower's debt due and payable immediately.
A business accelerator is intended to promote rapid growth of a start-up company. An accelerator is typically utilized after the initial stages of start-up incubation. The time frame is usually three to six months to address operational, strategic, and organizational challenges that a young business may face in transitioning to a mature company.
Amounts owed to creditors for goods and services.
The U.S. federal securities laws define the term "accredited investor" in Rule 501 of Regulation D. One category of accredited investor is "a charitable organization, corporation, or partnership with assets exceeding $5 million."
An obligation resulting from the recognition of an expense prior to the payment of cash
Also known as "quick ratio," cash, marketable securities, and accounts receivable divided by current liabilities. This ratio focuses on an organization's more liquid assets, and answers the question "if revenue stopped coming in, could this organization meet its current obligations?"
The process of loan payment over time by regular payments of interest and principal. The "amortization period" refers to a fixed period during which regular loan payments are made. The payment includes interest due each period, plus principal.
To pay off (as in a loan) gradually, usually by making periodic fixed payments of principal and interest. In accounting, to gradually reduce or write off the cost or value of something (such as goodwill or other intangible assets).
Profiting from differences in price when the same asset (including a commodity or security) is traded on two or more markets, taking advantage of disparities in prices between markets.
A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same laws and regulations. The three main asset classes are debt (loans), equities (stocks and real estate), fixed income (bonds and notes) and cash equivalents (money market instruments). Mission investing can be carried out across the spectrum of asset classes.
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