In the 1980s, Michael Milken was known in Wall Street as the "The Junk Bond King". A junk bond, also called a high-yield bond, is a corporate debt instrument that has a high probability of default, but provides a potential high rate of return. Milken, who worked at investment bank Drexel Burnham Lambert, was by far … Continue reading The collapse of Drexel Burnham Lambert: a story of insider trading and greed
A Lender of Last Resort (LLR) is an institution, usually a country's Central Bank (like the Federal Reserve in the United States), that offers loans to banks or other organizations that are having financial difficulties or that are near a collapse or a bankruptcy. Generally, LLRs borrow money to those companies or financial institutions whose … Continue reading What is a Lender of Last Resort?
A share (or stock) is a security that gives the buyer part of the ownership of the issuing company. Moreover, a the owner of a share can also have the right to claim a part of the earning gained by the enterprise, which might be distributed among shareholders as dividends. There are two types of shares: common and preferred. The first ones usually allow … Continue reading What is a share?