25% rule

Definition:

The guidelines that bonded debt over 25% of a municipality's annual budget is excessive.

Investing Essentials


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

Term of the Day

Agency theory

The analysis of principal-agent relationships, in which one person, an agent, acts on behalf of another person, a principal.

Subscribe to the Term of the Day via email Get the Term of the Day in your inbox!


Create your free portfolio