Bankruptcy risk

Definition:

The risk that a firm will be unable to meet its debt obligations. Also referred to as default or insolvency risk.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Dedicated capital

Total par value (number of shares issued, multiplied by the par value of each share). Also called dedicated value.

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