Explaining Underwater Loans
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Feel like you're drowning in debt? It may be because your loans have gone underwater.
Investopedia explains: Reconciliation is an accounting process in which two sets of records are compared to make sure that the figures are in agreement. These sets of records are usually account balances.
Collateral is property or other assets that a borrower offers a lender to secure a loan. If the borrower stops making the promised loan payments, the lender can seize the collateral to recoup its losses.
A mortgage is a loan used to purchase a home, where the property serves as the borrower's collateral.
Weighted average cost of capital may be hard to calculate, but it's a solid way to measure investment quality
Learn about how this number provides a measure of how much systematic risk a firm's equity has compared to the market.
Learn more about the different ways you can calculate your portfolio's average return.
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