Kembara’s Financial Solutions – What is Agency Relationship?
A relationship where a principal engages an agent on his or her behalf to perform some services. This will delegate the principal authority. The principal may incur cost in monitoring and controlling the behavior of the agent. Agent also may incur bonding cost for convincing the principal that his or her interest will not be harmed. Residual loss may happen due to decisions that may not maximize the welfare of the principal. Agency costs are the sum of the bonding cost, residual cost and monitoring cost. The manager may reduce the agency cost by choosing to provide the financial statements to the shareholders or creditors. These financial statements given to external parties may avoid any costly disputes and expensive mechanism in controlling their actions. This is known as agency theory.
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Kembara’s Financial Solutions – What is Agency Loan?
A loan that is available for local government authorities or public organizations. Kembara’s Financial Solutions – What is Agency Fee
Agency fee is also known as facility fee. It is an annual fee that is paid to the agent based on the responsibility and work involved in managing the loan after it has been signed. Kembara’s Financial Solutions – What is Agency Agreement?
It is an agreement between a bank and a customer which allows the customer to bank cheques at one of the branches although the customer does not have any account with the bank. Agency agreement is entered due to logistic reasons with a charge for the service provides by the bank. Kembara’s Financial Solutions – What is Agency?
Agency is a relationship between two parties. These include the principal and agent. Principal is the one whose action is being taken by the agent. An agency agreement may exist which include power of attorney to negotiate a contract or purchase of the securities. Agency may also mean an organization which provides agency service. Agency also means a bank which act as an organizer for a group of banks lending money to corporation. Kembara’s Financial Solutions – What is Ageing Schedule?
Ageing schedule is a breakdown of accounts receivable based on the time period. Kembara’s Financial Solutions – What is Against the Box?
It is a situation where a dealer who holds a long position in a security makes a short sale in the same stock. Kembara’s Financial Solutions – What is Against Actuals?
Against Actuals is the term used to describe transactions in future contracts which are the offset against the transactions in the cash market. Kembara’s Financial Solutions – What is AG?
AG is an abbreviation for Aktiengesellschaft which is equivalent to German, Austrian or Swiss public limited company. |
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