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What Is the Payback Period? The term payback period refers to the amount of time it takes to recover the cost of an investment. Simply put, it is the length of time an investment reaches a breakeven point. People and corporations mainly invest their money to get paid back, which is why the payback period

What Is Paycheck to Paycheck? Paycheck to paycheck is an expression describing an individual who would be unable to meet financial obligations if unemployed. Those living paycheck to paycheck predominantly devote their salaries to expenses. Living paycheck to paycheck may also mean living with limited or no savings and refer to people at greater financial

What Was the Pay Czar? “Pay czar” was the nickname given to Special Master for Executive Compensation Kenneth Feinberg. The role of the Special Master for Executive Compensation was to monitor compensation paid to executives of firms that received funds under the U.S. Troubled Asset Relief Program (TARP), which bailed out several companies, including banks, during

Pay Czar Clause: An Overview A pay czar clause is a section of boilerplate language added to a financial institution’s executive employment contracts that makes the compensation terms subject to approval by the U.S. government. The pay czar clause became common after the 2008-2009 bailout of financial institutions by the U.S. government. These clauses allow

What Is a Payday Loan? A payday loan is a type of short-term borrowing where a lender will extend high-interest credit based on your income. Its principal is typically a portion of your next paycheck. Payday loans charge high-interest rates for short-term, immediate credit. They are also called cash advance loans or check advance loans.

What Is a Paydown? A paydown is a reduction in the overall debt achieved by a company, a government, or a consumer. In business, it often involves issuing a round of corporate bonds for less than the previous issue. In that way, the company reduces its debt load. For a consumer, a paydown can mean

What Is a Paydown Factor? A paydown factor is calculated as the principal portion of a monthly loan payment divided by the original principal of the loan. Paydown factors can be calculated monthly and may be included in monthly statements. A paydown factor is also an important metric that is commonly observed when analyzing structured

What Is a Payee? A payee is a party in an exchange of goods or services who receives payment. The payee is paid by cash, check, or another transfer medium by a payer. The payer receives goods or services in return. The name of the payee is included in the bill of exchange and it

What Is a Paying Agent? A paying agent—also known as a “disbursing agent”—is one who accepts payments from the issuer of a security and then distributes the funds to holders of the security. Paying Agent Explained Paying agents are usually a corporate trust department of a bank or trust company that are designated to make dividend

What Is a Payment? Payment is the transfer of money, goods, or services in exchange for goods and services in acceptable proportions that have been previously agreed upon by all parties involved. A payment can be made in the form of services exchanged, cash, check, wire transfer, credit card, debit card, or cryptocurrencies. Key Takeaways