Dividend policy

Posted by admin - Comments Off

A common covenant is to require the company to pay its debtors before making a dividend payment. In many cases such restrictions are extended to cover actions such as share buy-backs and capital reduction programs. There is an intrinsic conflict between shareholder interests and creditor interests and banks need to protect themselves from action that » Read More

Financial securities

Posted by admin - Comments Off

Banks are willing to accept some financial securities as collateral. These securities can include government paper, such as Treasury bills and bonds, and corporate paper, such as bonds and commercial paper. Many banks will also accept traded equity stocks. Where the loans are used by the borrower to purchase securities the loans are usually subject » Read More