What do you need to know about communism?
Key Takeaways Communism is an economic ideology that advocates for a classless society in which all property and wealth is communally-owned, instead of by individuals. The communist ideology was developed by Karl Marx and is the opposite of a capitalist one, which relies on democracy and production of capital to form a society.
What are the means of production in communism?
The means of production are labor, entrepreneurship, capital goods, and natural resources. Although the government doesn’t legally own the labor force, the central planners tell the people where they should work. German philosopher Karl Marx developed the theory of communism.
What is the origin of the word communism?
Word Origin and History for communism. Originally a theory of society; as name of a political system, 1850, a translation of German Kommunismus (itself from French), in Marx and Engels’ “Manifesto of the Communist Party.”. In some cases in early and mid-20c., a term of abuse implying anti-social criminality without regard to political theory.
How is capitalism related to the concept of communism?
Communism Communism is an economic and political philosophy grounded in the belief that societies are shaped by their economic systems. According to communism, capitalism creates social problems by dividing wealth unfairly between two classes of people. Therefore, the economic system must be reformed to distribute wealth equally.
Communism: Notes for IAS Exam Communism is a political, economic ideology and movement whose ultimate goal is the establishment of a communist society, namely a socioeconomic order structured upon the ideas of common ownership of the means of production and the absence of social classes, money and the state.
What are the terms of a Holdco Pik?
As such, any debt service or repayment of principal on a Holdco PIK will be contingent on distributions being made from the operating group which, in and of itself, will be subject to the terms and conditions of the senior debt, the availability of distributable reserves as well as the general desire of the shareholders to make such payments.
What makes a Holdco Pik a junk bond?
The “holdco” PIK instruments normally trade as junk bonds because they are subordinate to debt issued by the operating units of the holding companies. In other words, if the issuer defaults, lenders can only collect whatever cash remains after more senior debt is liquidated. Holdco PIKs often toggle.
Who are the preferred stock holders of Holdco notes?
A lot of times it’s the sub debt provider (who holds preferred stock).” Sources said that preferred equity or HoldCo notes are frequently funded by either mezzanine/sub debt-focused funds or a private equity sponsor’s limited partners.