What Is a Distress Sale? A distress sale—also called a distressed sale—occurs when a property, stock, or other asset must be sold quickly. Distress sales often result in a financial loss for the seller who, for reasons of economic duress, must accept a lower price. The proceeds from these assets are most often used to
What Is Distress Cost? Distress cost refers to the expense that a firm in financial distress faces beyond the cost of doing business, such as a higher cost of capital. Companies in distress tend to have a harder time meeting their financial obligations, which translates to a higher probability of default. Distress costs may extend
What Is a Distressed Borrower? A distressed borrower is a borrower who is unable to fully repay their debt on time, due to financial difficulties. A distressed borrower can be either a person or a business whose income falls due to unforeseen circumstances. The situation may invoke a collection agency. Distressed borrowers can also become distressed
What Are Distressed Securities? Distressed securities are financial instruments issued by a company that is near to—or currently going through—bankruptcy. Distressed securities can include common and preferred shares, bank debt, trade claims, and corporate bonds. A particular security can also be considered distressed if it fails to maintain certain covenants (obligations incorporated into the debt or security, such
What Is Distributable Net Income? The term distributable net income (DNI) refers to income allocated from a trust to its beneficiaries. Distributable net income is the maximum amount received by a unitholder or a beneficiary that is taxable. This figure is capped to ensure there is no instance of double taxation. Any amount above the
What Are Distributed Applications (ĐApps) Distributed Applications (ĐApps) are software applications that are stored and executed mostly on cloud computing platforms and that run on multiple systems simultaneously. These distributed systems operate on the same network and communicate with each other in an effort to complete a specific task or command—unlike a traditional app, which
What Is Distributed Ledger Technology (DLT)? Distributed Ledger Technology (DLT) refers to the technological infrastructure and protocols that allows simultaneous access, validation, and record updating in an immutable manner across a network that’s spread across multiple entities or locations. DLT, more commonly known as the blockchain technology, was introduced by Bitcoin and is now a buzzword
DEFINITION of Distributing Syndicate Distributing syndicate is a group of investment banks that work together to sell an initial public offering (IPO) of stock or other securities to the market. Investment banks often form syndicates when working on large securities offerings to reduce risk and to increase the speed and efficiency of selling the securities
What Is a Distribution Reinvestment? Distribution reinvestment is a process whereby the distribution from a pooled investment trust is automatically reinvested in the trust. Dividend reinvestment plans (DRIPs) are a common form of distribution reinvestment. Distributions from limited partnerships like real estate investment trusts (REITs) or other pooled investments are also often reinvested into common
What Is a Distribution Channel? A distribution channel is the network of businesses or intermediaries through which a good or service passes until it reaches the final buyer or the end consumer. Distribution channels can include wholesalers, retailers, distributors, and even the internet. Distribution channels are part of the downstream process, answering the question “How
