What Is Negative Information? Negative information is data in a consumer’s credit report that lowers their credit score. Credit reports also contain positive information such as on-time payments and loans that have been repaid in full. Understanding Negative Information Negative information includes items such as late payments on loans and credit cards, delinquent accounts, charge-offs
What Is a Negative Interest Rate Policy (NIRP)? A negative interest rate policy (NIRP) is an unconventional monetary policy tool employed by a central bank whereby nominal target interest rates are set with a negative value, below the theoretical lower bound of zero percent. A NIRP is a relatively new development (since the 1990s) in
What Is a Negatively Amortizing Loan? A negatively amortizing loan, sometimes called a negative amortization loan or negative amortized loan, is one with a payment structure that allows for a scheduled payment to be made by the borrower that is less than the interest charged on the loan. When that happens, deferred interest is created.
What Is a Negative Pledge Clause? A negative pledge clause is a type of negative covenant that prevents a borrower from pledging any assets if doing so would jeopardize the lender’s security. This type of clause may be part of bond indentures and traditional loan structures. Key Takeaways A negative pledge clause is a part
What Is the Neglected Firm Effect? The neglected firm effect is a financial theory that explains the tendency for certain lesser-known companies to outperform better-known companies. The neglected firm effect suggests that stocks of lesser-known companies are able to generate higher returns because they are less likely to be analyzed and scrutinized by market analysts
What Is a Negotiable Instrument? A negotiable instrument is a signed document that promises a sum of payment to a specified person or the assignee. In other words, it is a formalized type of IOU: A transferable, signed document that promises to pay the bearer a sum of money at a future date or on-demand.
What Is a Negotiated Market? A negotiated market is a type of secondary market exchange in which the prices of each security are bargained out between buyers and sellers. In a negotiated market, there are no market-makers or order matching. Instead, buyers and sellers actively negotiate on the price at which a transaction is finalized either
What is Negotiated Sale? A negotiated sale is when the issuer and a few buyers negotiate the terms of a transaction (municipal bonds) in lieu of competitive bidding. Key Takeaways A negotiated sale is when the issuer and a few buyers negotiate the terms of a transaction (municipal bonds) in lieu of competitive bidding.In a
What is Negotiated Underwriting? Negotiated underwriting is a process whereby the issuer of new security and a single underwriter settle both the purchase price and the offering price. Key Takeaways Negotiated underwriting refers to the agreement between an issuer and a single underwriter for the offering and purchase price of a new bond issue.The difference
What Is a Negotiation? The term negotiation refers to a strategic discussion that resolves an issue in a way that both parties find acceptable. In a negotiation, each party tries to persuade the other to agree with their point of view. Negotiations involve some give and take, which means one party will always come out
