What is the Financial Stability Plan (FSP)? The Financial Stability Plan (FSP) was a memo published by the U.S. Treasury under the Obama administration in early 2009 that outlined the planned implementation of the Emergency Economic Stabilization Act of 2008. The FSP was not an independent policy itself, but rather a set of talk points summarizing
What Are Financial Statements? Financial statements are written records that convey the business activities and the financial performance of a company. Financial statements are often audited by government agencies, accountants, firms, etc. to ensure accuracy and for tax, financing, or investing purposes. For-profit primary financial statements include the balance sheet, income statement, statement of cash
What Is Financial Structure? Financial structure refers to the mix of debt and equity that a company uses to finance its operations. This composition directly affects the risk and value of the associated business. The financial managers of the business have the responsibility of deciding the best mixture of debt and equity for optimizing the financial structure.
What Is Financial Therapy? Financial therapy merges finance with emotional support to help people cope with financial stress. Financial advisors and other professionals who are certified as financial therapists often provide therapy to clients in order to help them make logical monetary decisions and deal with any financial issues they might be facing. Financial therapy
What Is Financing? Financing is the process of providing funds for business activities, making purchases, or investing. Financial institutions, such as banks, are in the business of providing capital to businesses, consumers, and investors to help them achieve their goals. The use of financing is vital in any economic system, as it allows companies to purchase products
What Is a Financing Entity? A financing entity is the party in a financing arrangement that provides money, property, or another asset to an intermediary or financed entity. A financing entity receives a fee for its services and is linked to the financed entity through a chain of financing transactions across all intermediaries. Key Takeaways A
What Is Financial Analysis? Financial analysis is the process of evaluating businesses, projects, budgets, and other finance-related transactions to determine their performance and suitability. Typically, financial analysis is used to analyze whether an entity is stable, solvent, liquid, or profitable enough to warrant a monetary investment. Key Takeaways If conducted internally, financial analysis can help
What Is a Financial Asset? A financial asset is a liquid asset that gets its value from a contractual right or ownership claim. Cash, stocks, bonds, mutual funds, and bank deposits are all are examples of financial assets. Unlike land, property, commodities, or other tangible physical assets, financial assets do not necessarily have inherent physical
What Is the Financial CHOICE Act? The term Financial CHOICE Act refers to a bill introduced in the U.S. Congress in 2017. The bill was designed to roll back regulations set by the Dodd-Frank Wall Street Reform and Consumer Protection Act, which was passed in 2010 in response to the 2007-2008 financial crisis. The bill aimed
What Is the Financial Conduct Authority (UK)? As the regulator of the financial services industry in the United Kingdom, the Financial Conduct Authority (FCA) is responsible for the functioning of the U.K.’s financial markets. The goal of the organization is to ensure honest and fair markets for individuals, businesses, and the economy as a whole.
