Margin Call: When a company's shares go down below a preset value that can cover the bank's loan value, the bank will ask for more money or shares as a guarantee that the loan will be paid back.
If the business owner is unable to meet the bank's request for additional funds or collateral, the bank has the authority to sell the pledged shares on the stock market to secure repayment of the loan.
When the demand for a bond increases, its price goes up, leading to investors buying bonds at a premium and ultimately resulting in a decrease in yield or return.
2) Central banks may increase short-term interest rates to control inflation or cool down an overheating economy.
Investors may opt for fixed deposits with banks as they offer a more attractive rate of return, causing a decline in demand for existing shorter-term bonds.
2) What is the connection between Foxconn and Apple?
Foxconn is one of Apple's largest manufacturing partners that produces a wide range of products including iPhones, iPads, MacBooks, and other Apple devices.
3) What types of products does Foxconn manufacture?
Mainly 4 types:
a) Smart Consumer Electronics: Smart Phones/Wearables