Search results
Results from the WOW.Com Content Network
[5] [6] For the government, the tax base is a company's income or profit. Tax is levied as a percentage on this income/profit. When that income / profit is transferred to a tax haven, the tax base is eroded and the company does not pay taxes to the country that is generating the income.
When a company has more liabilities than assets, equity is negative and no liquidating distribution is made at all. This is usually the case in bankruptcy liquidations. Creditors are always senior to shareholders in receiving the corporation's assets upon winding up. However, in case all debts to creditors have been fully satisfied, there is a ...
Liquidation may either be compulsory (sometimes referred to as a creditors' liquidation or receivership following bankruptcy, which may result in the court creating a "liquidation trust"; or sometimes a court can mandate the appointment of a liquidator e.g. wind-up order in Australia) or voluntary (sometimes referred to as a shareholders ...
One example of this is a comparison of assets with and without a liquid secondary market. The liquidity discount is the reduced promised yield or expected return for such assets, like the difference between newly issued U.S. Treasury bonds compared to off the run treasuries with the same term to maturity.
This ability to shift assets provides liquidity to otherwise non-liquid assets. The key piece of legislation that led to this reality was the Banking Act of 1935 . One of its amendments provided that, a federal reserve bank may discount any commercial, agricultural or industrial paper for liquidity purposes.
One voice pushing back against confiscating foreign firms’ assets is billionaire metals tycoon Vladimir Potanin, who compared it to the Russian Revolution of 1917, when Communists took power.
High levels of indebtedness or the bursting of a real estate or financial asset price bubble can cause a balance sheet recession. This is when large numbers of consumers or corporations pay down debt (i.e., save) rather than spend or invest, which slows the economy.
Get AOL Mail for FREE! Manage your email like never before with travel, photo & document views. Personalize your inbox with themes & tabs. You've Got Mail!