INTEREST RATE Definition

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INTEREST RATE is the rate of interest charged for the use of money, usually expressed as an annual rate. The rate is derived by dividing the amount of interest by the amount of principal borrowed. For example, if a bank charged $100 a year to borrow $1,000, the interest rate would be 10%. Interest rates are quoted on bills, notes, bonds, credit cards and many kinds of consumer and business loans. Rates in general tend to rise with inflation and in response to the Federal Reserve raising key short-term rates. A rise in interest rates has a negative effect on the stock market because investors can get more competitive returns from buying newly issued bonds instead of stocks. It also hurts the secondary market for bonds because rates look less attractive compared to newer issues.

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ORIGINAL EQUIPMENT MANUFACTURER (OEM) is a company that builds components or systems that are used in systems or products sold by another company using the purchasing companys brand. Sometimes referred to as "private label."

NET WORTH is the difference between Total Liabilities and Total Assets. Minority interest is included here.

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