Comprehensive explanation of 12b-1 fees, which are annual marketing or distribution fees included in a mutual fund's expense ratio. Discover their purpose, calculation, implications, and regulatory background.
Comprehensive definition and analysis of 3(c)(7), focusing on the regulation that imposes no limit on the number of investors but restricts them to qualified purchasers.
A comprehensive guide to the 30/360 day count convention used in finance, including its historical context, applications, types, and calculations.
A comprehensive overview of 401(k), a tax-advantaged retirement savings plan sponsored by many employers in the United States, including types, benefits, and usage.
A 412(e)(3) plan is a type of defined benefit pension plan that is funded exclusively by life insurance and annuity contracts. Known for guaranteed benefits, these plans are subject to enhanced regulatory scrutiny to prevent abuses.
A report that companies must file with the SEC to announce significant events that shareholders should know about between 10-Q and 10-K filings.
An A-Share is an ordinary share in a company that receives the same dividends as other ordinary shares but does not provide any voting rights to its holder.
An in-depth look at the AAA rating, the highest credit rating assigned to an issuer's bonds by credit rating agencies, indicating excellent creditworthiness and a very low risk of default.
Comprehensive guide on Asset-Backed Medium-Term Note (ABMTN), including historical context, types, key events, and detailed explanations.
An Asset-Backed Security (ABS) is a financial instrument that is backed by a pool of underlying assets such as loans, leases, credit card debt, or receivables. This article explores the definition, types, examples, history, and applications of ABS, along with related terms and frequently asked questions.
Absolute Valuation is a method used in fundamental analysis to assess a company's intrinsic value by examining its financials without comparing it to other firms.
An overview of 'Acción' encompassing its historical context, types, key events, mathematical models, and its significance in finance.
Accredited Investors are individuals or entities that meet specific financial criteria set by securities regulators, enabling them to invest in certain high-risk ventures such as private equity, hedge funds, and startups.
An in-depth look at accretion, explaining how the value of an asset can increase due to physical changes, and not merely due to market fluctuations. Covers historical context, types, key events, mathematical models, charts, applicability, and more.
An accrual bond is a type of bond where interest accrues over time instead of being paid out periodically, typically seen in zero-coupon bonds (also known as Z-Bonds).
An in-depth look at accumulated dividends, their historical context, types, key events, formulas, and significance in finance.
An in-depth look at accumulating shares, a strategy to reinvest dividends into additional shares instead of taking the payout, converting annual income into capital growth while managing tax implications.
Accumulation in securities trading indicates potential price rise, opposite of distribution.
Acquisition financing refers to the methods and tools used to fund the purchase of another company. This comprehensive article explores its historical context, types, key events, models, importance, examples, and more.
An active market is a trading environment where assets of a particular class are frequently and heavily traded. This concept is crucial in fair value accounting. In the absence of an active market, pricing data may be limited, and alternative valuation methods like marking to model might be required. This article delves into the characteristics, significance, and applications of active markets.
Active stocks refer to securities that experience high trading volumes on a stock exchange over a given period.
Activist Investing involves acquiring substantial equity in companies to influence management and company decisions, often leading to changes in corporate policies, strategies, or structure.
A comprehensive guide on the comparison between actual (Ex-Post) and expected (Ex-Ante) returns in finance, detailing their definitions, importance, calculation, and implications.
A financial convention using the actual number of days in a period divided by 360 for interest calculation.
A comprehensive definition of the Actual/Actual day count convention, including its types, features, applications, and historical context.
Additional Paid-In Capital: Excess Received from Stockholders over the Par Value of the Stock Issued
A comprehensive guide to understanding Additional Paid-In Capital (APIC), its historical context, types, key events, detailed explanations, and applicability in finance and accounting.
Additional Voluntary Contribution (AVC) refers to extra payments that employees can make to their pension scheme to boost the benefits they receive upon retirement. These contributions can be directed towards either the pension payable or a tax-free lump sum.
A dual currency bond with floating interest rate and an inbuilt put option that provides flexibility and risk management.
Adjusted earnings are a financial metric that presents a company's earnings by excluding certain expenses, gains, and losses. This measure aims to provide a clearer picture of the company's core operational performance.
Adjusted EPS (Earnings Per Share) is an EPS calculation that makes specific adjustments to better reflect a company's core profitability, excluding one-time expenses, gains, or losses.
Adjusted EPS (Earnings Per Share) is a refined metric often used to provide a more accurate reflection of a company's profitability by excluding irregular or non-recurring items. Learn about its significance, calculations, and comparisons.
A thorough exploration of Adjusted Present Value (APV), a method to evaluate the net present value (NPV) of a project considering all-equity financing and adjusting for the impact of tax benefits and other factors.
An overview of American Depositary Receipts (ADRs), their structure, types, benefits, and applications in the trading of foreign shares on U.S. markets.
American Depositary Receipt (ADR) is a negotiable certificate issued by a U.S. bank representing a specified number of shares in a foreign stock traded on a U.S. exchange.
Advisor Class Shares of mutual funds, designed for investors using financial advisors, often come with specific fee structures including load charges.
Advisory Fees are charges levied by financial advisors for providing personalized investment advice and portfolio management. These fees are fundamental in compensating the advisors for their expertise, ensuring the alignment of their interests with those of their clients.
Affiliated Investments refer to investments where the insurance company holds significant ownership or control, typically in subsidiaries or controlled entities.
A detailed exploration of Affinity Fraud, which involves investment scams that exploit trust within identifiable groups, including definition, types, examples, historical context, and prevention strategies.
Contributions made from income that has already been taxed, used in various savings and investment accounts that offer distinct benefits and implications based on taxation, withdrawal rules, and overall financial planning.
The return on an investment after accounting for taxes but not for inflation. Understanding and calculating After-Tax Return is crucial for maximizing investment efficiency and financial planning.
The After-Tax Yield is the net return on an investment after accounting for taxes, providing a clearer picture of the actual return for investors in different tax brackets. It is crucial for assessing the true profitability of taxable investments.
Aggressive Growth Funds are mutual funds that focus solely on aggressive capital appreciation, neglecting income generation via dividends.
An agreed bid is a type of takeover bid that gains the support of the majority of the shareholders of the target company, in contrast to a hostile bid.
An in-depth examination of the Association of International Accountants and the Annual Investment Allowance, including their significance, history, and implications.
Comprehensive coverage of Alternative Investment Funds, their types, key events, and importance.
An in-depth overview of AIM, its history, functionality, importance, and role in providing investment opportunities in smaller companies.
Aktien represent shares or stocks in an Aktiengesellschaft (AG), a type of corporation under German law equivalent to a joint stock company or corporation in other jurisdictions.
Exploring the use of algorithms in high-frequency trading, its mechanisms, types, advantages, and special considerations.
A detailed exploration of All-Equity Net Present Value, including historical context, key events, formulas, examples, and much more.
An in-depth exploration of All-Inclusive Trust Deeds (AITDs), covering their structure, benefits, applications, and historical context in real estate transactions.
A comprehensive guide to understanding All-or-None (AON) Offering, its mechanisms, criteria, and implications in securities sales.
An in-depth examination of allotted shares, their role in company finances, and their impact on shareholders.
Comprehensive examination of allottees, detailing their role in share allocation processes, historical context, and importance in finance and investment.
Alpha measures the active return on an investment, gauging performance relative to a market index or benchmark.
Alpha represents an investment's performance relative to a benchmark index, indicating the active return on investment compared to the market.
An in-depth look at Alpha (\(lpha\)), a measure of investment performance relative to a benchmark, including its historical context, significance, calculations, examples, and related terms.
The Alpha Coefficient is a measure used in finance to evaluate the expected return of a share in comparison to shares with similar systematic risks. It provides insights into the specific risk related to individual securities, distinguishing it from systematic risk.
Alpha generation refers to the ability to achieve investment returns exceeding a market index's benchmark return, adjusted for risk.
A comprehensive examination of Alpha Stocks, their historical context, types, key events, mathematical models, and significance in the stock market.
Alpha measures the excess return of an asset relative to its expected return, while Beta measures its systematic risk. This comprehensive guide explains their definitions, types, importance, and applications in finance.
The Alternative Investment Market (AIM) of the London Stock Exchange offers smaller companies a platform to raise capital and have their shares traded without the expenses of a full market listing.
A sub-market of the London Stock Exchange that allows smaller companies to float shares with a more flexible regulatory system, promoting growth and investment opportunities.
A comprehensive guide to Alternative Reference Rates (ARR), their history, types, significance, and comparison to LIBOR. Includes key events, mathematical models, examples, and FAQs.
Altman's Z-Score is a financial metric used to predict the likelihood of a company entering bankruptcy. Developed by Edward I. Altman, this score leverages multiple financial ratios to assess the financial health of businesses.
An in-depth exploration of American Depositary Receipts (ADRs), their historical context, types, advantages, and impact on international investing.
American Depositary Shares (ADSs) are the actual shares issued under the ADR that represent ownership in a foreign company. They facilitate American investors' ability to invest in foreign companies through their local markets.
Introduced in 1986, the American Gold Eagle is a gold bullion coin containing 91.67% gold and displaying iconic American imagery.
An American option is a type of options contract that allows the holder to exercise the option on any business day prior to its expiry date. This article explores its historical context, key characteristics, mathematical models, importance, applicability, examples, and related terms.
American Options are financial derivatives that can be exercised at any point before their expiration date. This guide provides an in-depth exploration of American Options, including their history, types, key events, and detailed explanations.
American-style options are financial derivatives that give the holder the right to exercise the option at any time before and including its expiration date. This flexibility distinguishes them from European-style options.
An in-depth look into amortizing bonds, exploring their historical context, types, key events, mathematical models, charts, importance, applicability, examples, and related terms.
An in-depth look at Auction Market Preferred Stock (AMPS), including historical context, key events, detailed explanations, and its importance in finance.
Analyst Forecast: Predictions Made by Market Analysts About a Company’s Future Financial Performance
An in-depth look at what an analyst forecast is, including its types, significance, methodologies, examples, and related terms.
An encompassing definition of Analyst Rating in Finance and Investments, including types, historical context, applicability, and FAQs.
An in-depth look at analyst ratings, a crucial measure in evaluating securities. Learn about the different types, special considerations, examples, historical context, and more.
An in-depth look at Angel Investing, where high-net-worth individuals provide capital for startups, typically in exchange for ownership equity.
Angel Investment refers to early-stage funding provided by wealthy individuals (angels) to start-up companies, usually in exchange for ownership equity or convertible debt.
Affluent individuals providing capital for startups in exchange for ownership equity or convertible debt, often before venture capital involvement.
The annual growth rate is the year-over-year growth rate of an investment over a specified period, crucial for assessing investment performance.
An in-depth explanation of the Annual Interest Rate, its significance in finance, calculation methods, examples, historical context, and its role in various financial instruments.
Comprehensive guide to understanding Annualized Return: definition, formulas, examples, and its significance in the financial world.
An annuity is a contract with a financial institution, usually an insurance company, that provides regular income payments for life. This entry covers historical context, types, key events, mathematical models, examples, and more.
An annuity in which payments continue for a specified period irrespective of the life or death of the person covered.
Understanding the Annuity Due Factor: Definition, Formula, Examples, and Applications in Finance
The annuity factor converts a lump sum into a series of periodic payments over a specified period. It plays a crucial role in financial planning, investment analysis, and loan amortization.
An Anti-Martingale Strategy involves reducing bet size following a loss and increasing it after a win, thereby enhancing risk management.
A comprehensive examination of the process by which a company applies to a stock exchange for its securities to be traded, including requirements, benefits, and related terms.
An application form, issued by a newly floated company with its prospectus, serves as a tool through which members of the public apply for shares in the company.
Comprehensive guide on Arbitrage Pricing Theory (APT), including its historical context, key events, mathematical models, and applicability in finance.
APY or Annual Percentage Yield represents the real rate of return on savings or investments, factoring in the effect of compounding interest.
An in-depth exploration of the Arbitrage Pricing Theory (APT), its historical context, key principles, mathematical models, and its significance in financial economics.
An in-depth exploration of Asian Options, financial derivatives whose payouts are based on the average price of an underlying asset over a specified period rather than a single price point.
The term 'Ask' refers to the lowest price at which a seller is willing to sell a financial instrument or commodity. It plays a crucial role in the dynamics of trading and markets.
An in-depth exploration of Asset Cover, a financial ratio that evaluates a company's solvency by comparing its net assets to its debt.
Understanding the risk of default associated with assets held by financial institutions and other entities.
An in-depth exploration of Asset-Backed Commercial Paper (ABCP), covering its definition, history, types, key events, mathematical models, applicability, examples, related terms, and more.
A comprehensive overview of asset-backed funds, their significance, types, historical context, key events, mathematical models, examples, and much more.
A comprehensive guide on Asset-Backed Medium-Term Notes (ABMTNs), covering historical context, key events, detailed explanations, mathematical models, and their importance in financial markets.
An in-depth look at Asset-Backed Securities (ABS), covering their historical context, types, key events, mathematical models, significance, and practical applications.
An in-depth look into Asset-Backed Securities, their types, mechanisms, historical context, importance, applicability, and more.
