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Negative working capital |
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Negative working capitalOccurs when current liabilities exceed current assets, which can lead to bankruptcy.Negative working capital Similar MatchesNegative listNegative listIn an international agreement, a list of those items, entities, products, etc. to which the agreement will not apply, the commitment being to apply the agreement to everything else. Contrasts with positive list. Negative income taxNegative income taxA proposal to assist taxpayer with below-subsistence-level incomes. After filing a tax return, such persons would receive a subsidy to bring them up above the poverty level. Negative pledge clauseNegative pledge clauseA bond covenant that requires the borrower to grant lenders a lien equivalent to any liens that may be granted in the future to any other currently unsecured lenders. Negative equityNegative equityA situation where the purchaser of a property has taken out a mortgage and some time after the purchase, the value of the property falls below the mortgage amount. For example:Purchase price of property: £80,000Deposit: £10,000Mortgage: £70,000If the value of the property falls below £70,000, the mortgage holder has negative equity in the property. Negative externalityNegative externalityA harmful externality; that is, a harmful effect of one economic agent's actions on another. Considered a distortion because the first agent has inadequate incentive to curtail their action. Examples are pollution from factories (a production externality) and smoke from cigarettes (a consumption externality). Further SuggestionsNegative yield curveNegative NPV tie in project Negative convexity Negative duration N Negative Amortization Negative amortization Negative cash flow Negative covenant |
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