Category Archives: Corporate & Government

Warrants

Types of Warrants

A warrant is a legal document that is signed by a judge and gives the authority to law enforcement officers to take necessary legal actions against someone. Warrants are of different types such as criminal warrants and civil warrants. A criminal warrant is a warrant which is issued to authorities with a view to secure evidences or detains suspects involved in criminal acts. A civil warrant on the other hand is a warrant which is used for several different purposes in the lawsuits like recovering personal property or trying to obtain monetary relief.

If we talk about the courts in United States, they are given enough authority to issue warrants to law enforcement agencies for a variety of purposes. Following are given some of the different types of warrants.

Felony Warrant

Felony warrant is a warrant which is issued by the court when the law enforcement has ample incriminating proof to detain a person found guilty of committing a felony. This sort of warrant remains valid until the suspected person is apprehended.

Capias Pro Fine Warrant

This is a type of warrant which is issued when a decision has been made by a court and court assigns a certain period of time to a suspect to fulfill the orders of the court such as to pay fine as compensation etc and the suspect is failed to fulfill the court’s order. In that case such warrants are issued to arrest that person.

Alias Warrant

Alias warrant is a warrant which is issued against a person who is unable to come into the court after being agreed to a plea bargain. These are the individuals who give pledge to appear in the court in next court date given by the court. If someone fails to uphold his pledge, the court can take legal action to issue this sort of warrant to arrest you.

Search Warrant

Search warrant is a type of warrant which is issued by the court to law enforcement authority so that they can conduct a search in a person’s premises with a view that a person is involved in some illegal activities or committed a crime a certain place.

Eviction Warrant

Eviction warrant is a warrant which is issued against a person who is not paying his/her rent or mortgage over a certain time span. In that case, the court issues a warrant against that person with a date and time on which the person should leave the property.

Apart from these warrants, federal and state warrants are other common warrants that are issued by the courts in United States. A federal warrant is a warrant issued by a federal judge or magistrate against a criminal case after hearing the federal lawyer or law enforcement authorities along with solid evidences. Similarly, state warrant is a warrant issued to apprehend an individual in the interest of a state.

Bonds

Types of Bonds

A bond is in fact a certificate of debt (usually interest-bearing or discounted), issued by a government or corporation in order to raise money. The issuer is required to pay a fixed sum annually until maturity and then a fixed sum to repay the principal. There are numerous amount of features attached with bonds, e.g. the way interest is paid, issuing market, currency in which they are payable, legal status and protective features. Bonds are not necessarily issued by government only as there are many other organizations and financial institutes which are authorized to issue bonds such as corporations, special purpose trusts, and non-profit organizations.

Bonds are of different types and nature. Following are given some of the different types of bonds.

Asset-Backed Securities

These are securities which are based on the communal funds (pools) of principal assets. The nature of these assets should be private and illiquid. In order to make these assets available for investment to a broader range of investors, securitization is occurred. Similarly, the pooling of assets comes about to make certain that the securitization is large enough to be economical and to branch out the features of the principal assets.

Government Bonds

  • Supranational Agencies

These are the agencies which impose assessments or fees against its member governments. Eventually, the support and the taxation power of the primary national governments enable these agencies to make payments on their debts. The most obvious example of such agency is that of a World Bank.

  • National Governments

The national governments or central governments are the governments which have the power to print new money with a view to pay off their debts. It is one major factor why most of the investors find the central governments of the modern industrial countries ‘risk-free’ from default viewpoint.

  • Quasi-Government Issuers

There are several financial institutes that issue bonds on behalf of the government. These financial institutes are either backed by revenues of the specific institution or supported by some government sponsor. For instance, in Canada, Federal government agencies and Crown corporations have the ability to issue bonds. In Canada, The Federal Business Development Bank (FBDB) and The Canadian Mortgage and Housing Corporation (CMHC) issue bonds which are guaranteed by the Federal government of Canada. Similarly, Ontario Hydro and Hydro Quebec, the two provincial crown corporations are supported by the provincial governments of Ontario and Quebec.

  • Provincial or State Governments

On the basis of constitutional ability, provincial or state governments can also issue debts. For instance, Ontario, a Canadian province takes on loan more than several small countries. Majority of the investors take these state or provincial governments as strong credits because of their authority to impose income or sales taxes to back their debt payments. However, these governments are not considered as strong as national governments because of their inability to control monetary policy.

  • Municipal and Regional Governments

The bonds issued by cities, towns, counties or regional municipalities are often backed by property taxes. Even school boards have the ability to issue bonds on the basis property tax charge by them for education.

Convertible Bonds

It is a bond type that allows the holder to convert or exchange into the equal amount of the bond or common shares of the issuer at some fixed ratio while a certain period of time. The conversion feature of these bonds gives them a feature of fixed income securities and also equity securities.

High Yield or “Junk” Bonds

High yield or junk bonds are the bonds which are issued by government or organizations with a higher credit risk. What we mean by higher credit risk is that it has higher return rates than any of the other bond with better credit quality. The credit ratings of high yield bonds are known to be of speculative grade or below investment grade which means that the chances of default with high yield bonds are always higher than other sort of bonds. Financial experts are of the view that portfolios (collection of investments) of high yield bonds have high returns than other kind of bonds, indicating that the higher returns pay back more than for the risk attached with them.

Inflation-Linked Bonds

A bond that gives protection against inflation is known as inflation-linked bond. Majority of the inflation-linked bonds are principal indexed such as the Canadian “Real Return Bond “(RRB), the British “Inflation-linked Gilt” (ILG) and the new U.S. Treasury “inflation-protected security” (IPS). With a passage of time, the principal amount is increased with the fluctuation in inflation. In several countries, the Consumer Price Index (CPI) or its alternative is a key for inflation proxy. When the principal amount increases with change in inflation, the interest is then imposed on that increased amount. As a result of this, the interest payment begins to increase with time. Eventually, the principal amount is paid back at maturity against the inflated amount.

U.S. Treasury Inflation-Protected Securities (TIPS)

U.S capital market had dawned with a new age beginning on Wednesday, January 29, 1997, as the United States Treasury introduced its very first issue of inflation-linked bond, 3.375% of 2007. Its principal is increased in this bond by bringing changes in the Consumer Price Index (CPI). In this the interest payment is calculated on the basis of inflated principal, which is eventually repaid at its maturity. Through this the investor is given the ability to protect against inflation while at the same time providing certain real return over an investment horizon. The auction went extremely well despite critics and uncertainly over the great inflation debate with interest 5 times the size of the $7.0 billion issue. To add to this the real yield of the tip reached more than 3.5% in the when issue trading before the auction but fell dramatically to 3.3% in the aftermarket trading.

Extendible & Retractable Bonds

The extendible and retractable bonds are the bonds with more than one maturity date. Extendable bonds allow the holder to extend present maturity date to a new longer maturity date. While with retractable bonds, the holder is able to promote the yield of principal to an earlier date than the original date. These types of bonds help the investor to take full advantage of the interest rates by modifying the terms of their portfolio. The most characteristic feature of these bonds lies in their basic terms. For instance, if the interest rate is on higher side, these bonds behave as if bonds with shorter terms. And if on the other hand interest rate is falling, these bonds behave like bonds with longer terms.

Mortgage-Backed Securities

The securities which are dependent upon a pool of underlying mortgages are known are mortgage-backed securities (MBS). These mortgages on which these securities based are usually supported by government agencies for payment of timely payment of principal. The study of MBS generally focuses on the disposition of the underlying payment stream, especially the prepayment of the principal before the maturity ends.

Foreign Currency Bonds

An issuer issues foreign currency bond in other currency than its national currency so as to attract the buyers. These Foreign Currency bonds are so issued as in foreign currencies to make them more attractive to buyers and at the same time take advantage of international interest rates differentials. These bonds can be swapped easily en at the same time converted in the swap market in to the home currency of the issuer. In United States Market Bonds issued by foreign issuers in U.S dollars are known as Yankee bonds. Bonds issued in British pounds in British bond market are referred to as Bulldogs.

Zero Coupon or “Strip” Bonds

Zero coupon or strip bonds are basically fixed income securities which are developed from the cash flows that constitute a normal bond. These are the bonds issued at a price lower than its face value where the face value is paid back at the end of maturity. These are also classed discount bond or deep discount bond.

Diplomats

Types of Diplomats

A diplomatic mission is a group of people which represent their state or international inter-governmental organization like United Nations in another state. A diplomatic mission usually consists of the people of higher ranks who are supposed to represent their state or organization in another state. In general, a diplomatic mission stands for permanent mission, i.e. an office of a country’s representatives located in the capital of another country. A diplomatic mission can be a non-resident permanent mission or resident permanent mission to other countries while being still in another country as a diplomatic mission.

There can be many different kinds of diplomatic missions a country can represent in other country. Some of the different types of diplomatic missions are given below:

Permanent Mission

A permanent mission is the one that leads the diplomatic mission to one or several international organizations. One such renowned organization to which different states send Permanent Mission is that of a United Nations. Out of these, the most well-known representatives are chosen for the headquarters in New York City. However, several member states also employ permanent mission for certain other UN offices based in Geneva, Vienna and Nairobi.

It has been seen that Permanent Representatives are normally defined incorrectly as ambassadors. It is important to make a distinction between the two here. A Permanent Representative, though keeps the personal title of an ambassador, he/she is assigned to an international organization rather than Head of State (which is a job of ambassador) or Head of Government as in case of High Commissioner.

In contrast to UN, UNESCO assigns Permanent Delegates to lead the diplomatic mission to the organization instead of Permanent Representatives.

Embassy

An embassy can be considered as a permanent diplomatic mission or the edifice which is housing the mission. Embassies have an important role to play in any country’s foreign relation policy because of their role as a middleman between the host country and visiting country. It is via these embassies that countries solve their political tensions or trade tariffs. An embassy is basically a place which is run by the Foreign Service personnel of the visiting country. An embassy is a large edifice which has in it staff housing, offices or representatives and places for public functions held occasionally by the diplomatic mission.

Consulate General

The term consul is used to refer to the official chosen by a country to represent the country in a foreign country. The major goal of his/her job is to help and defend the interests of the citizens of the visiting country. The other jobs of the consul includes to aid trade and to improve the relationships between the people of both the countries. It is important to note here that consul is different from ambassador as the job of both differs a lot. An ambassador is basically an official representative of one country to another and it is only one ambassador that is accredited to the country to represent his/her own head of state to another country. The job of an ambassador is normally to look after the diplomatic relations between the two countries. A consul on the other hand can be assigned in all the major cities of the foreign country and his/her job may include to assist the citizens of his own country in bureaucratic problems or to the citizens of the consul’s residing country in the matters of trade and other related issues.

Consulate

A consulate is a building where homes and offices of the consul are located. The job of the assigned consuls is to assist the citizens of consuls’ own country in the matters concerning visas or other related issues. Consuls are the officials who work for the betterment of the foreign relations between their host country and their home country.

The services offered by a consulate differ from country to country. Consulates usually assist the people of their own country in providing them information about the hotels, money-changing services, passport and visas related issues and so on. Also, consulates help the people of the home country when they need some legal help by recommending suitable local lawyers who can help them solving their legal issues.

Honorary consul

We have talked about consuls in our previous heading, it is vital to mention here that not all the consuls are official representatives from the state to another state. There are some consuls who are known as the logically engaged staff having the same nationality as that of the sending country. These are usually called honorary consuls who are assigned by a foreign government to carry out jobs in the smaller cities or in the cities which are far-off from the primary diplomatic mission. However, it is important to note that an honorary consul may not be a citizen of a sending country; these can be the citizens of the hosting country as well.

Beam Bridge

Types of Bridges

Bridge is basically a structure that is built over a road, river, railroad/railway etc so that people can cross from one side to another. The basic concept or idea behind constructing a bridge is to cross large bodies of water or land. Bridge is a mean to join the two afar areas mostly over masses water or land so that it become easy for people to move across from one side to another quite easily. There are so many types of bridges which are based on the techniques used in construction.

Different Types of Bridges

Below are some of the different types of bridges:

Beam Bridge: A beam bridge is basically drawn from the log bridge. Its construction relies on low steel beams, concrete and box grinders. It is said that the construction of beam bridge is the technically the easiest and uncomplicated among all the other types. Some of the bridges of this type include highway overpasses, flyovers or walkways. In this type of bridge a flat beam is supported on its both ends on piers.

Truss Bridge: This type of bridges is constructed by joining straight elements. These elements are often joined by means of pin joints. There is an abundance of forests in United States and hence of wood as well. Due to this fact, a lot of truss bridges were made in the past with timbers iron rods. Timbers were used as a source of compression and iron rods were used handle the tension. In the course of history, the truss bridges became popular from 1870s to 1930s. One such popular bridge is Deck truss Railroad Bridge constructed on the Erie Canal.

Arch Bridge: Arch bridges are called arch bridge because of having a shape similar to arches. These bridges are normally constructed with weight equally distributed into the ropes or chains at both the ends. The oldest arch bridge that still exists is the ‘Mycenaean Arkadiko Bridge’ constructed in Greece somewhere around 1300BC. Although, Greeks and Etruscans were familiar with the arches, Romans were known to be the first who discover the art of constructing an arch bridge. Present day arch bridge are the modified from as they have become compression arch suspended deck bridge which rely on light but stronger tensile construction material.

Suspension Bridge: A suspension bridge is a bridge that hangs from steel cables which are supported by towers on each end. Technically, the load of the bridge is transformed into the stretchiness in the cables. Some of the popular suspension bridges include the Golden Gate Bridge of United States, the Humber Bridge of England and the Tsing MA Bridge of China.

Cable-stayed Bridge: These are almost similar to suspension bridge in their structure but with few exceptions. The major differences between the two exist in the quantity of steel cable used. In the cable-stayed bridge, the towers used to support cables are relatively shorter and require less amount of cable as compared to suspension bridge. Cable-stayed bridge has two different versions: the harp design and fan variant design. Cables are connected to several points in harp design while in fan variant, the cables are attached to the tower. In United States, Cable Bridge has the reputation of first of this type. Other popular bridge is Centennial Bridge.

Cantilever Bridge: These are the bridges which are constructed in such a way that they stand out in the direction of horizontal-axis in space. These bridges are supported just on one end. The bridges for low traffic are simply based on beams whereas the bridges for heavy traffic are comprised of box grinders or trusses. Two of the most popular cantilever bridges include the Quebec Bridge of Canada (1800 feet long) and Oakland Bay Bridge of Sans Francisco (1400 feet long).

Bridges are surely a great way to reach the places which people never think of by any other simple mean. Bridges not only connect far-off lands but also provide opportunity to the mankind to explore different aspect of new technology. A bridge may be a an inspiration of a man who saw a block of wood floating on a water surface or perhaps the urge to come in contact with people living far-off ends. Whatever the reasons, the bridge is surely a great way to defeat the physical hindrances.

Hydropower

Types of Renewable Energy

Renewable energy is although becoming more common around the world but still not leading power supply. Biofuels, biomass, hydro power and geothermal are basic types of renewable energy. All of these energy sources are a substitute customary energy production and in this manner our track on the environment can be reproduced and drop. Scientists now days have been evaluating and generating energy sources as an option to conventional energy sources as we are dependant upon our natural resources to fulfill our requirement. An energy which can be generated in less span of period is called renewable energy.

Hydropower

Hydropower is the biggest supply of renewable energy. 10% of the nations electricity demand is fulfilled with renewable source of energy. Currently 77,000 Megawatts of hydropower are adequate to meet the demands of 35 million homes with energy. Flowing water which comes from rivers and released through turbines is converted into utilizable energy produces hydropower. It can mightily hurt fish and wildlife, transfer people and change the quality of water although this power supply does not discharge pollution. To decrease the loss of aquatic life improved and expensive technology is used but it takes enough time to make.

Renewable energy is getting improved greatly. Energy prices have fallen. New vehicles with superior fuel system and different fuels as Ethanol are introduced with technological improvement.

Biomass/Bioenergy

Biomass composed of about 7000 Megawatts of renewable power. Industrial processors such as such as forestry and wood products, agriculture and wood products, and construction and transportation shoot biomass energy. It can put back coal in power plants as it produces less amount of sulfur dioxide than coal.

Mill actions looked the basic source of biomass power in the U.S, but in Europe urban wood waste is the main source of bioenrgy. Remaining third world countries build timber for the main source of energy.

International Energy Agency shows the statistics that 11% of the world originates its energy from biomass while developing nations use about 35% and poorest ones utilize approximately 90%.

Biomass is converted into utilizable power is through gasification by altering it to gas and finally burn in a gas turbine.

Geothermal Energy

Geothermal energy is able to generate about 2,800 Megawatts of energy per year, or roughly 2% of the energy in the U.S. Naturally occurring steam and hot water from under the Earth’s surface are the means of geothermal energy.  Electric generator powers in results of the steam rotation a turbine. Hot water can also be used to directly warm buildings. A problem with geothermal energy is that land locations are not easy to find and are very rare. But it is very cost effective and reliable.

Wind Energy

Electricity is produces .1% through wind energy which generates almost 2,500 Megawatts of energy. The wind revolves around a focal point which is linked to the main shaft which turns a generator. The required energy influenced the size of turbines as small wind turbines are generally used for homes, farms and ranches. The wind energy can be used in the manner of graining grain and pumping water.

Wind is divided among 7 categories in which 7 being the highest one and 1 being the lowest. A fine wind is the supply which has a class of 3 or superior is the east coast and among the Appalachian Mountains. North Dhaka is known as a tremendous wind source.

The problems of the wind power are expensive technology, noisy machinery; many birds became dead by going inside the turbines and finally wind might not available all the time in the year.

Photovoltaic (PV) Cells

Sunlight is the source through which PV cells generate electrical energy. The material which is used in computer ships is like PV cell’s material which absorbs sunlight to free the electrons from atoms and permits them to create current. PV cells are very trustworthy which do not create impurity and they also don’t need great protection.

It is good to use renewable energy but still we have to use some kinds of fossil fuels. Best choices can be make by adopting ways such as natural gas for water heating and power appliance which is not only healthy for the environment but also less costly.

The disadvantage of this using this energy source is that it is costlier than other types of power sources and works sufficiently in sun shine.

Life Insurance

Types of Life Insurance

Life insurance is a kind of contract between two parties, i.e. between policy owner and the insurer wherein the insurer consents to pay the indicated beneficiary a sum of amount on the event of the insured individual’s death, terminal illness or critical illness. The policy owner in return agrees to pay stipulated amount of money in lump sums or at regular intervals.

Everyone who has a family to support is worried about the financial security of his family after his death. Certainly, it is hard for anyone to plan for financial aspects after one’s life. Often people ignore the importance of having life insurance coverage because they are not aware of the importance of it. In an event of one’s death, the family usually faces a lot of financial problems without having any coverage.

Before taking any policy, it is extremely important to have a thorough knowledge of the different types of policies and out of them choose the best that suits your requirements. For those who are keen to purchase the life insurance plan but don’t know much about different plans this article will definitely be a great help. Following are given some of the different types of life insurance plans:

Term Insurance Policy

Term insurance policy is a type of life insurance which most of the people imagine of. It is perhaps the best policy that fulfills the needs of the purchaser. Term Insurance Policy is a kind of limited coverage that provides coverage for restricted number of years. In this kind of plan the policy owner pays unvarying premium for said number of years depending on the coverage.

Whole Life Policy

Whole life policy is a type of life insurance which is known to be the most costly among the three principal types, i.e. term, whole and universal life insurance. Although, it is costlier, it guarantees death benefits along with a cash value growth rate, and fixed premium. Because of its guaranteed death benefit, it is often appreciated by the people and also it has a minimum risk of lapse. To avoid policy lapsing, the policy owner is required to make regular unvarying payments like term insurance policy.

Universal Life Insurance

Universal life insurance is third of the principal types of life insurance. It is a permanent life insurance which is much more resilient for policy holders, however, requires much more attention to prevent any lapsing. This policy is costly than the term insurance policy but economical than whole life policy. Universal life insurance doesn’t follow any set schedule for payments nor is the growth of cash value fixed. The policy holder must take an account of the amount of cash value saved up to avoid any policy lapsing. If anyone is interested in this sort of policy, one has to understand the conditions well, as this policy is funded slightly different than other available polices.

Endowment Policy

Endowment policy is another type of life insurance which is quite appreciated among the masses. It is a policy that integrates the risk coverage with those of savings and investment. This means that the policy holder will receive the assured amount if he/she dies while the policy time is yet not over. Similarly, if the policy holder survives, still he will get assured amount. The insurance company is legally bound to pay the additional benefits such as bonus, double endowment, marriage or education endowment or any other benefits that are offered by the insurer in addition to the assured amount to the policy holder if he survives subsequent to the end of the policy period. In this type of policy, the policy holder can expect to get huge amount at the end of the policy tenure.

Special Life Insurance

Apart from the above mentioned types of life insurance, there are some other types of life insurance as well which are given below:

Special Purpose Life Insurance

Special purpose life insurance is a life insurance that assists the policy holder in some sort of purpose like paying off a mortgage if the policy holder dies.

Business Life Insurance

Life insurance is not just to assist the families in case of any unwanted event like death of the policy holder but also provides help to the business to prevent any financial crisis because of the death of any valued member. Business life insurance is a policy that is often used for the sake of rewarding employees.

Special Risk Life Insurance

Insurance companies are often hesitant to provide insurance to the people who are known to stand for an above average risk which an insurance company in no way willing to cover at standard rates. However, these people can still buy the coverage under different life insurance products.

Money Back Policy

Money back policy is a policy that assists his policy holder in the time of his needs. The need can be anything like marriage, education, and so on. Money back policy provides the money back to the policy holder after the specified duration. The family of the deceased gets the amount if the policy holder dies before the end of the policy tenure.

Bearer Cheque

Types of Cheques

Wallace W. Kravitz defines a blank cheque or simply a cheque or American check as, “a written order that directs a drawee (the bank) to make a payment to a payee (the individual or entity indicated on the check) form the bank account of the individual or entity that signs the check,” in the book named ‘Bookkeeping the Easy Way’. A check can either be negotiable or non-negotiable. By negotiable, we mean that the check that can be transferred from one person to another, while the non-negotiable check cannot be transferred. In United States, checks are often negotiable, but checks are both negotiable and non-negotiable in the United Kingdom.

Bearer Cheque

Eric Russell Watson in the book ‘The Law Relating to Cheques’ defines a bearer check as check that is paid to its bearer. Bearer is a person who presents it at the bank. Bearer checks don’t bear the name of the payee nor even the enclose the entity to whom the check should be paid.

Certified Cheque

It is a form of check or check that authenticates a payee’s honesty by giving an assurance that adequate fund subsists in the payee account before issuing the check. These funds are then used to pay the bearer of check. Lawrence Dicksee writes in the book ‘Business Organization’ that a certified check reduces the risk of bouncing because the bank makes certain that the check is substantiated with sufficient funds.

Crossed Cheque

A crossed cheque or crossed check is a type of check that has two parallel lines through its top left hand corner or sometimes upon the whole face of the check. The purpose of these lines is to signify the fact that the check is a crossed check and it needs to be deposited directly into the bank account of an account holder. In Australia and Mexico, crossed checks are widely used. Some of the different types of crossing on checks include: general crossing, non-negotiable crossing, special crossing, and restrictive crossing.

Traveler’s Cheque

A fixed amount check that is sold by a bank in different denominations is known as traveler’s cheque or traveler’s check. Traveler’s checks are meant for the people who are going on vacations or travelling for business purposes. It is a kind of internationally accepted letter of credit which can be used while travelling. Major financial companies are responsible for issuing traveler’s checks like Thomas Cook or American Express. These companies sold them through banks. Merchants, hotels, banks, shopping malls etc willingly accept these checks as cash.

Banker’s Draft

Banker’s draft is a type of check that is taken as cleared funds. It is issued and drawn by a standard bank. Anyone can get a banker’s draft from a standard bank against a small fee. Banker draft is mostly used in the situations where it is risky to use cash or making large payments.

Guaranteed Cheques

Banks often provide their account holders with a ‘cheque card or check card’ which is a sort of guarantee that a bank provides you in terms of paying a maximum amount through a check, i.e. the bank will guarantee you that it will pay the check, to say $100 or $500 as a maximum amount. This guarantee is not applied in all conditions. There are certain conditions under which this guarantee is applied on the payment of check of certain amount.

Bankruptcy

Types of Bankruptcy

Bankruptcy is a term which means state of being bankrupt. In simple words, when you don’t have enough money to pay what you owe. It is a complex phenomenon and its terms and conditions differ from state to state. However, the basic process and terminology used in bankruptcy remains the same.

Generally, there are two major parties who are involved in bankruptcy filings that is, the debtor and the creditor. The debtor is one who is under debt or owes money to their creditor. A debtor can either be an enterprise or a person; however, a creditor can be an organization. It is the creditor who claims the debtor for money or property.

There are two major types of debt that a debtor owes: Secured and Unsecured. In secured debts, creditors have the rights for any collateral for the debt. You have to keep any of your assets as security deposit to creditor. Creditors place a lien to your asset. Mortgage is an apt example of secured debt. Unsecured debts are not bound with any collateral. There is no lien on your property or any other assets. Credit card debt is a perfect example of unsecured debt.

Secured debts are really complex to understand in business. The loans taken by business give their creditors a lien aligned with insubstantial aspects of business like those of patents, intellectual property, or trademarks. Still, creditors can possess the property having lien against it.

Types of Bankruptcy

There are four types of bankruptcy which are named after their respective chapters in the United States Bankruptcy Code. There are several different factors on which different types of bankruptcy based. Following is given the brief description of four types of bankruptcy.

Chapter 7

When anybody says, “I am filing for bankruptcy,” this means Chapter 7 type of bankruptcy. It is a kind of liquidation bankruptcy where a trustee sells out the entire non-exempt assets owned by the debtor. All the individuals, businesses, and partnerships are entitled to Chapter 7 bankruptcies. Everyone tries their best to stay away from Chapter 7 bankruptcy as it will not allow you to conduct business operations in a steady way; however, the debtor will allow keeping the income generated after the bankruptcy case. A Chapter 7 bankruptcy is used to repay the debt by selling off the assets and the part of the payment that remains unpaid via liquidation is discharged.

Chapter 11

Chapter 11 bankruptcy is a complicated form of bankruptcy cases. Although, this type of bankruptcy filing mostly troubles the businesses, some individuals can also file it. In this sort of bankruptcy filing, the debtor are allow to carry on with their business, keep the ownership as well and are allowed to reorganize themselves and devise a proper plan to get rid off their debts.

There was no time limit for reorganization and payment plan for the businesses in the past. But under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, businesses are obliged to submit their plan within 120 days off bankruptcy filing. Similarly, lenders can come up with their own plans.

Chapter 12

Chapter 12 type of bankruptcy is particularly designed for farm owners. Like Chapter 11 bankruptcy, the debtor can keep the ownership of his/her assets and make a repayment plan in collaboration with creditor. Debtor has to stick to that plan in order pay off the debt. Keeping in view the income of the debtor, some part of the debt can also be discharged.

Chapter 13

It is a kind of bankruptcy which is known as reorganization bankruptcy. It is similar to Chapter 11 bankruptcy but imposed to individuals. Reorganization bankruptcy or Chapter 13 bankruptcy permits the debtors to pay off their debt amount within the time period of three to five years. Debtors have to submit a repayment plan in the court for endorsement. A trustee will be assigned to oversee the repayments by the court. If for any reason, you can’t continue to make payment, you bankruptcy filing should be shifted to Chapter 7.

You might also want to learn more about Government Debt Consolidation Loans.

Mutual Funds

Types of International Investments

Before moving on to describe the types of international investment, it is important to have some idea about what actually international investment is. Generally, an international investment theory illustrates the flow of investment capital into and out of a country by investors. Investors’ main aim is to maximize the return on their investment. The potential return on alternative investments in the home and foreign markets is one of the major factors that impact the international investment.

In recent years, it has become extremely easy and simple to invest worldwide. There are varieties of ways to invest in the international market that include: mutual funds, direct investments in foreign markets, U.S. traded foreign stocks and American Depositary Receipts.

Prominent growth has been in the market value of foreign stocks over the value of all U.S. stocks in 1985. But most of the investors still invest a very small percentage of their portfolio in the foreign market. Probably, the reason behind this is the continuous dramatic changes happening in the markets outside of the United States.

Following are given few of the most popular ways to invest in the international market:

Mutual Funds

Mutual funds are considered less burdensome than international stocks, as a lot of evaluating and tracking is involved in stocks. Mutual funds also branch out several different methods for the investor to invest through the funds in foreign market. You can take help from your advisors to manage funds for you. Some of the funds that invest in foreign stocks include:

  • Global Funds: These funds are less volatile than the straight international funds. You can invest through global mutual funds in foreign as well as local U.S. companies.
  • International Mutual Funds: These funds invest only in foreign companies. These types of funds help you to expand your investment.
  • International Index Funds: these funds work via matching the shareholdings of a target index and own a full participation in some part of the stock market. These funds don’t require advisors to manage the funds.

American Depository Receipts

To make a process of investing in foreign market easier, U.S. banks hold the certificates of ownership commonly known as American Depository Receipts (ADRs). It is basically the process in which you buy and sell ADRs you trade and settle in U.S. dollars. It involves quite a weary process as it takes a long time to receive information from the company and depository banks for their service charges.

Stocks Trading on Foreign Market

This process involve an extensive research as companies you are dealing with don’t file any reports with the SEC. you ask your broker to purchase stocks from the companies that only trade on a foreign stock market.

Foreign Direct Investment

Foreign direct investment (FDI) is described as an active investment in a foreign market. These sorts of investments don’t involve the purchasing of securities instead an investor build factories or directly gain control over the interest in foreign business in order to raise profit shares.

Monarchy

Types of Governments

Every country needs an institution to run the country in an organized way. The working needs a proper council to run and organize to form a strong foundation of a country. This system is worked under the name government. A government is an organization, or the institution, or the agency, through which a political unit exercise its authority, control and directs the actions of its members. The performance and functions of a political unit such as country, state or town is organized by the government. Countries around the world uses various systems of government to outgrowth their success run of the country. Every type of country has its own way to organize and work, every country has its own set of positive and negative aspects. Every country runs in its own environmental conditions and has embrace.

Monarchy

Monarchy is a form of government that pass onto the family only, it to the descendants. Currently there exits thirty one monarchs reigning over forty five extant sovereign monarchies in the world.16 of these are Commonwealth Realms that formally recognize Queen Elizabeth 2 as their head of state and Prince Charles as heir.

Despotism

It is a kind of government or rule in which a single person or leader rules the entire population. In such rule, all the subjects are considered to be leader’s slaves. An apt example of such rule is that of the ‘Pharaoh of Egypt’.

Dictatorship

Dictatorship is a form of rule in which a single person or individual has a complete power over the country. Dictatorship has several definitions which all depicts the totalitarian characteristics. Dictatorship is kind of government not chosen by the people, it is unlimited and tends to expand their control to every aspect of life.

Oligarchy

Oligarchy is a kind of government where a few people or a small group rules the country. The term oligarchy is used by Aristotle as synonym for the rule by the rich, also known as plutocracy. Now, oligarchy is considered as rule of the privileged class.

Plutocracy

Plutocracy is a form of government in which some rich people govern the country. To support the plutocracy, many political analysts argue that we have still situations where the private corporations and wealthy individuals have a strong influence on the government, which can be stated as synonymous with plutocracy.

Democracy

According to the Abraham Lincoln, democracy is a form of government that is of the people, by the people and for the people. In democracy, it is the people who choose their representatives and are given the rights to form the government. A Standard Constitution is a part of democratic government that confers rights of freedom and expression to its citizens. This constitution makes the basis for uniform law to govern the country.

Communist Government

It is a one party system which means that the state or country is governed by socialists. Communistic government works in line of Marxism-Leninism. In this government, the state and the communist party govern the nation in accordance with the wishes of the working class or peasantry. Though, communists believe to employ democratic dictatorship of the proletariat, it actually paved the way for communism.

Theocracy

The government which is governed by the religious elite is known as theocracy. This sort of rule is usually implemented in the form of hybrid government. For instance, in Iran the democratic and theocratic institutions make the government or the Netherlands, which combines the monarchy and democracy together.