Kimberly Amadeo

On Monday, September 15, 2008, at 1:45 a.m., Lehman Brothers Holdings Inc. filed a bankruptcy petition in the United States Bankruptcy Court for the Southern District of New York.1 It was the largest bankruptcy proceeding in U.S. history.2 The 164-year-old firm was the fourth-largest U.S. investment bank, and its bankruptcy kicked off a global financial crisis. Lehman used a high-leverage business model that required it to raise billions of dollars every day to keep the doors open.

The Federal Reserve is the central bank of the United States. Its decisions affect the U.S. economy and, therefore, the world. This position makes it the most powerful actor in the global economy. It is not a company or a government agency. Its leader is not an elected official, which makes it seem highly suspicious to many people, because it is not subject to either voters or shareholders.1 Learn how the Federal Reserve works, who actually owns it, and how they are held accountable.

The profit margin is a ratio of a company's profit (sales minus all expenses) divided by its revenue. The profit margin ratio compares profit to sales and tells you how well the company is handling its finances overall. It's always expressed as a percentage. There are three other types of profit margins that are helpful when evaluating a business. The gross profit margin, net profit margin, and operating profit margin.