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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 yield curveNegative yield curveWhen the yield on a short-term security is higher than the yield on a long-term security, partially because high interest rates are creating a greater demand for short-term borrowing. Negative convexityNegative convexityA bond characteristic such that the price appreciation will be less than the price depreciation for a large change in yield of a given number of basis points. For example, a fixed-rate mortgage may lose value as rates go down because of prepayments. Negative cash flowNegative cash flowOccurs when spending in a business is greater than earnings. 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). N Negative AmortizationN Negative AmortizationA condition created when a loan payment is less than interest alone. Even though payments are made on time, the amount owing increases. Further SuggestionsNegative pledge clauseNegative income tax Negative duration negative equity Negative list Negative NPV tie in project Negative covenant Negative amortization |
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