What Is Prepaid Interest? Prepaid interest is the interest that a debtor pays before the first scheduled debt repayment. For taxation purposes, most kinds of prepaid interest are expensed over the life of the loan. For mortgage loans, prepaid interest can also be the interim interest that accrues from the settlement day to the beginning
What Is a Prepaid Tuition Program? A prepaid tuition program refers to one of two major types of 529 plans. The program allows donors to provide all or part of a student’s tuition for college or university. The amount paid is guaranteed to grow at the same rate as college tuition, regardless of its rate
What Is Prepayment? Prepayment is an accounting term for the settlement of a debt or installment loan in advance of its official due date. A prepayment may be the settlement of a bill, an operating expense, or a non-operating expense that closes an account before its due date. A prepayment may be made by an
What Is a Prepayment Model? In lending, a prepayment model is used to estimate the level of prepayments on a loan portfolio that will occur in a set period of time, given possible changes in interest rates. Prepayment is the settlement of a debt or part of a debt before its official due date. It
What Is the Prague Stock Exchange (PSE)? The Prague Stock Exchange is the oldest and most prominent stock exchange in the Czech Republic. The Prague Stock Exchange is located in the city of Prague and was reopened in 1993 after a nearly 50-year hiatus as a result of World War II during the rule of the
What Is a Pre-Approval? A pre-approval is a preliminary evaluation of a potential borrower by a lender to determine whether they can be given a pre-qualification offer. Pre-approvals are generated through relationships with credit bureaus which facilitate pre-approval analysis through soft inquiries. Pre-approval marketing can provide a potential borrower with an estimated interest rate offer
What Is Precedent Transaction Analysis? Precedent transaction analysis is a valuation method in which the price paid for similar companies in the past is considered an indicator of a company’s value. Precedent transaction analysis creates an estimate of what a share of stock would be worth in the case of an acquisition. Key Takeaways Precedent traction
What Are Precious Metals? Precious metals are metals that are rare and have a high economic value due to various factors, including their scarcity, use in industrial processes, hedge against currency inflation, and role throughout history as a store of value. The most popular precious metals with investors are gold, platinum, and silver. Key Takeaways
What Is a Predator? In business, a predator is a slang term for a financially strong company that “gobbles up” another company via a merger or acquisition. The company that does the acquiring in this case—i.e., the predator—will often engage in a hostile takeover bid and/or bear substantial risks associated with the acquisition of the smaller
What Is the Predators’ Ball? The Predators’ Ball was an annual convention held by investment bank Drexel Burnham Lambert Inc. for the purpose of matching high-risk companies searching for financing with investors who wanted the high rewards that can come with higher risk. The Drexel conference, held at the Beverly Hilton Hotel in Los Angeles
