The peace dividend is a budget approach where military funding is reduced to increase funding for social services. It promotes economic strength and social justice, but some argue that increased military spending keeps nations safer. The peace dividend is a national budget approach where funding for military purposes is reduced in the interest of lowering […]
Bonds are a type of debt instrument used by companies and governments to generate funds for various projects. Investors purchase the bond at a specified price and receive interest payments over the life of the bond, with the principal investment redeemed at maturity. Bonds can be sold at face value or below, and interest rates […]
A baby bond is a financial supplement issued to parents, often in the form of a government payment, to help with the expenses of bearing and raising children. The structure and goals of the program vary, but it can provide benefits long after the child is born and is often used to balance age demographics. […]
A discretionary bonus is a cash award given at the discretion of someone with financial authority, usually based on individual performance and other factors. It cannot be contracted or earned through any specific channel and is not guaranteed. It is subject to income tax and is usually awarded at the end of the year. A […]
An entry voucher is a document used in import and export transactions that guarantees payment of associated duties. The bond company issuing the voucher covers costs if the importer goes out of business. The amount of the bond is usually higher than the anticipated duties and varies depending on the type of goods being shipped. […]
An administration bond protects the assets of an estate from unethical or harmful activities by the executor or administrator. It ensures that heirs receive inheritances in line with the wishes of the deceased, but only covers willful negligence or dishonesty. Laws regarding administration bonds vary by country, and legal consultation is advised in case of […]
A bond ladder is a strategy that minimizes risks associated with fixed income securities by investing in a collection of bonds with different maturity rates. It allows for cash flow control and diversification of investments. The ladder’s height is determined by the maturity of each bond, and it can be made of different materials. A […]
An advance payment bond is an agreement between a business and a service provider that guarantees the return of any advance payment if the provider fails to meet their obligations. This protects the customer’s investment in case of unforeseen circumstances. It is commonly used in construction projects and the amount decreases as the project progresses. […]
Performance bonuses are additional compensation given to employees for exceeding expectations. They are often given at the end of the fiscal year and can be in the form of stock options or retirement plans. The effectiveness of performance bonuses has been statistically validated, but determining the appropriate performance levels can be difficult. Performance bonuses are […]
Completion bonds ensure projects are completed even if the owner runs out of funds. They are common in mortgages for large construction projects and in the production of major motion pictures, protecting both the mortgagor and mortgagee from financial reversals. The completion bond prevents investors from losing funds and protects project initiators from unforeseen circumstances. […]
A bonus scheme is a strategy used by companies to motivate employees and attract/retain customers. It offers rewards beyond standard salary/benefits and creates incentives to continue the relationship. It benefits the company by increasing productivity/profit margins and building strong relationships with customers. Also known as an incentive scheme, a bonus scheme is a strategy that […]
General bonds provide insurance coverage for financial institutions against employee error, dishonesty, and theft. There are two types: business and position, with varying levels of coverage. They offer security for investors and allow firms to continue trading after a loss. The general bond is a form of insurance coverage that provides protection for brokerage firms […]
Indexed bonds protect against inflation by linking interest payments and principal repayment to a national price index. This ensures a promised return fee for investors, but the value of the bond can still fluctuate and declining inflation can negatively impact interest payments. An indexed bond is a reversal vehicle that is structured in the same […]
Series I Bonus is a certificate that generates interest from the US government and protects against inflation. It has a fixed and variable interest rate, and can be redeemed after 12 months but before 30 years. It is guaranteed to never lose its value due to a 0% interest rate. It can be bought in […]
A payment bonus is a guarantee that a contractor will pay workers and suppliers on time. The cost of the bonus varies based on the project’s value and the contractor’s credit history. It is often used in construction projects and issued with performance bonuses. A payment bonus is a type of guarantee. A contractor obtains […]
A signing bonus is a cash incentive offered by companies to attract top candidates for middle management and executive positions. The bonus is usually over $10,000 USD, but terms vary widely and may require repayment if the employee leaves the company. Prospective employees should carefully consider the terms before accepting the job. A signing bonus […]
