What Is an Adjustment Credit? The term adjustment credit refers to a short-term loan extended by a Federal Reserve Bank to a smaller commercial bank when it needs to maintain its reserve requirements and support short-term lending. Adjustment credits are a common form of borrowing between commercial banks and Federal Reserve Banks. A commercial bank
What Is an Adjustment Date? An adjustment date is the date when a financial change under a contract or transaction is scheduled to occur. All parties involved in a transaction will agree on the adjustment date. Many real estate deals include adjustment dates. Adjustment dates also refer to the dates when interest rate changes are scheduled
What Is Adjustment in Conversion Terms? Adjustment in conversion terms refers to a change in the conversion price to reflect the change in value of the security, such as after a stock split. Key Takeaways Adjustment in conversion terms refers to a change in the conversion price to reflect the change in value of the
What Is an Adjustment Index? The term adjustment index refers to a modification that is applied to a data set in order to make it a better representation of external conditions. Without the use of an adjustment index, the data in question may be distorted. An adjustment index can be a formula-based modification or a
What Is an Administration Bond? An administration bond is a bond that is posted on behalf of an administrator of an estate to provide assurance that they will conduct their duties according to the provisions of the will and/or the legal requirements of the jurisdiction. The bond covers any financial losses to the estate due
What Is Administrative Accounting? Administrative accounting handles and reports internal factors and figures that influence decision making, operational control, and managerial planning. An administrative accountant is usually responsible for accomplishing a company’s administrative goal. Tasked with managing and tracking incomings and outgoings, the duties of these professionals may extend to assisting companies with internal operational
What Is Adding to a Loser? Adding to a loser is a term that refers to an instance in which a trader or investor increases their position in an asset when its price is moving in the opposite direction of their original purchase. They are adding more funds, or increasing their position size, in a
What Is Additional Cardholder? An additional cardholder is an authorized secondary user added to an account by the primary cardholder. The additional cardholder generally gets to enjoy all the benefits of a debit or credit card account without any liability, which remains the responsibility of the primary cardholder. As a result, cardholders need to be
What Is Additional Collateral? Additional collateral refers to additional assets put up as collateral by a borrower against debt obligations. Key Takeaways When creditors require additional assets as collateral against debt obligations is called additional collateral. A lender may ask for additional collateral in order to appease investors or a credit committee. Understanding Additional Collateral
What Is an Additional Death Benefit? An additional death benefit is a clause found in certain life insurance contracts. It entitles the policyholder to receive an additional lump sum in the event that the policyholder should die for a reason that has been pre-approved within the insurance contract. For example, a life insurance contract with
