What is Cheap Stock Cheap stock refers to equity awards issued to employees ahead of an initial public offering (IPO) at a value far less than the IPO price. A venture that is not yet a public company may compensate employees with employee stock options or restricted stock units. These common forms of equity compensation
What Is the Check Clearing for the 21st Century Act (Check 21)? The Check Clearing for the 21st Century Act (Check 21) is a federal law that took effect on Oct. 28, 2004. It gives banks and other organizations the ability to create electronic images of consumers’ checks in a process known as check truncation.
What are Checkable Deposits? Checkable deposits is a technical term for any demand deposit account against which checks or drafts of any kind may be written. (A demand deposit account means the owner can withdraw funds on demand, with no notice.) They also include any kind of negotiable draft, such as a negotiable order of withdrawal (NOW) or Super NOW
What Is a Checkbook? A checkbook is a folder or small book containing preprinted paper instruments issued to checking account holders and used to pay for goods or services. A checkbook contains sequentially numbered checks that account holders can use as a bill of exchange. The checks are usually preprinted with the account holder’s name
What Is a Check Hold? A check hold denotes the maximum number of days that a bank can legally hold the money from a deposited check. After the check hold period has expired, the bank must credit the funds to the account of the party making the deposit. The check holding period is generally equal
What Is a Checking Account? A checking account is a deposit account held at a financial institution that allows withdrawals and deposits. Also called demand accounts or transactional accounts, checking accounts are very liquid and can be accessed using checks, automated teller machines (ATMs), and electronic debits, among other methods. A checking account differs from
What Is Check Representment? Check representment is a service offered by banks that resubmits a bounced check to the check writer’s account until funds are available for payment. In the check representment process, the bounced check is usually converted into an electronic item for representment. Many banks and financial institutions offer check representment services to
What Is a Check Routing Symbol? A check routing symbol is a set of numbers appearing as the denominator of a fraction that is printed in the upper portion of a check that is paid through the Federal Reserve System. It is also called the check’s fractional bank number. This number is not used much anymore
What Are Checks and Balances? Checks and balances are various procedures set in place to reduce mistakes, prevent improper behavior, or decrease the risk of centralization of power. Checks and balances usually ensure that no one person or department has absolute control over decisions, clearly define the assigned duties, and force cooperation in completing tasks. The term
What Is the Chicago School of Economics? Chicago School is an economic school of thought, founded in the 1930s by Frank Hyneman Knight, that promoted the virtues of free-market principles to better society. Key Takeaways Chicago School is an economic school of thought, founded in the 1930s by Frank Hyneman Knight, that promoted the virtues
