What Is a Cram-Down Deal? A cram-down deal refers to a situation where an investor or creditor is forced into accepting undesirable terms in a transaction or bankruptcy proceedings. It can be used as an alternative to the term “cram down.” It has come into use as an informal catch-all for any transaction that involves
What Does Crammed Down Mean? Crammed down refers to an investor or creditor being forced to accept undesirable terms. Crammed down is mainly used to describe either a dilutive venture capital (VC) financing round or the imposition of a bankruptcy reorganization plan by the court. Key Takeaways Crammed down mainly refers to a dilutive venture capital (VC) financing round
What Is a Cram Up? A cram up is when junior classes of creditors impose a cramdown—which allows bankruptcy courts to ignore objections by creditors to recognize debts—on senior classes of creditors during a bankruptcy or reorganization. If enough junior class creditors agree to the terms set by a company seeking refinancing, they can force holdouts to be bound to
What Is the Crapo Bill? The term Crapo Bill refers to an economic bill signed into law in 2018 that eases some of the restrictions of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The bill, officially called Economic Growth, Regulatory Relief, and Consumer Protection Act (S.2115), was sponsored by Mike Crapo, a United States
What Is a Crash? A crash is a sudden and significant decline in the value of a market. A crash is most often associated with an inflated stock market, though any market can crash, for example, the international oil market in 2016. In the U.S., a crash is determined by a precipitous drop in the
What Is the Commodity Research Bureau Index (CRBI)? The Commodity Research Bureau Index (CRBI) acts as a representative indicator of today’s global commodity markets. It measures the aggregated price direction of various commodity sectors. This commodity index comprises a basket of 19 commodities, with 39% allocated to energy contracts, 41% to agriculture, 7% to precious
What Is the Costa Rican Colón (CRC)? The Costa Rican colón (CRC) is the national currency of the Republic of Costa Rica. The currency was first issued in coin and paper form in 1896. One U.S. dollar was equal to about 601 CRC in late September 2020. Visitors to Costa Rica from the U.S. will find that
What Is the Central Registration Depository (CRD)? The Central Registration Depository (CRD) is a database maintained by the Financial Industry Regulatory Authority (FINRA) since 2007 for all firms and individuals involved in the U.S. securities industry. It is used to store and maintain information on registered securities and broker firms, as well as individuals who dispense
What Is a Creation Unit? A creation unit is a block of new shares sold by an exchange-traded fund (ETF) company to a broker-dealer for sale on the open market. Creation unit blocks typically range in size, anywhere from 25,000 to 600,000 shares. Broker-dealers can buy the shares in either a cash purchase or through an
What is Creative Accounting? Creative accounting consists of accounting practices that follow required laws and regulations, but capitalize on loopholes in accounting standards to falsely portray a better financial image of a company. Creative accounting techniques vary and evolve as regulations change to close the loopholes that allow them. Key Takeaways Creative accounting capitalizes on loopholes in
