Terms Beginning With 's'

Subprime Loan

Subprime Loan is like Subprime Mortgage, wherein the loan is given to borrowers with low credit ratings at a higher prime rate. Mostly subprime borrowers are turned down by the lenders due to the possible chance of defaulting on the repayment of debt.

Also, subprime interest rate generally varies with the lenders; therefore, it is always wise to do some research before choosing a lender.

High Leveraged Transaction is defined as a bank loan given to a company which is already in huge debt.

Margin is the borrowed money, used to buy an investment, from a brokerage firm and is the difference between the total value of securities held in the loan amount from the broker and an investor's account.

A margin account is also known as brokerage account or loan account, in which the customers can borrow money from brokers in cash to buy stocks or any other financial products. A margin account is only appropriate for a sophisticated investor, as the investor has the potential to lose more money than the deposited funds in the account.

Backlog is an accumulation of work that needs to be completed, and the term has a variety of uses in the accounting process. The uncleared company’s sales orders and pending loan applications are some of the examples of backlog. The backlog figures may impact the company’s future earnings.

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