A full-service broker provides a wide array of financial services beyond merely executing trades, including personalized investment advice, research, and financial planning.
An in-depth look into the concept of a Fund Family, also known as a Family of Funds, within the realm of investments, mutual funds, and asset management.
Detailed insight into Fund of Funds, a mutual fund that diversifies by investing in other mutual funds, offering better risk management and potential returns.
Fund Switching is the process of moving money from one mutual fund to another within the same fund family to time market ups and downs or to meet changing financial needs.
A funded retirement plan refers to a pension plan where the funds are set aside and invested to ensure the payment of future benefits to the retirees.
The Future Worth (or Value) of One Per Period refers to the accumulation of a series of equal cash flows over time, compounded at a specific interest rate.
Learn about the Future Worth (or Value) of One, also known as the Compound Amount of One. Understand its significance, calculation, historical context, and practical applications in finance, investments, and more.
The Futures Market is an organized marketplace where Futures Contracts, agreements to buy or sell a commodity at a future date at a predetermined price, are traded. This article explores types, functions, historical context, and modern applications of Futures Markets.
An in-depth exploration of futures transactions in hedging scenarios, encompassing definitions, examples, historical context, and related terminologies.
Detailed Overview of Gilt: Characteristics, Types, Historical Context, and Applicability in Financial Markets
A Ginnie Mae Pass-Through Security is a type of mortgage-backed security guaranteed by the Government National Mortgage Association, passing through interest and principal payments from a pool of mortgages to investors.
A comprehensive guide to Glamor Stock, including its characteristics, historical context, examples, and importance in the financial markets.
Exploring the concept of 'Going Long' in investment and speculation, covering its definition, types, considerations, examples, historical context, and comparisons.
Going Public: The process by which a private company first offers its shares to the public, transitioning to public ownership and compliance with regulatory requirements.
Going Short refers to selling a financial instrument that the seller does not currently own, with hopes of buying it back later at a lower price. This strategy is commonly used in stock and commodity markets.
A Goldbug is an analyst who strongly advocates for gold as a prime investment vehicle, particularly in times of economic turmoil such as depressions or hyperinflation. They view gold as a safe haven amidst financial instability.
A Good-Faith Deposit represents money advanced to indicate intent to pursue a contract to completion. It varies in definition and application across different contexts such as commodities and securities.
Government Agency Securities are securities issued by U.S. government agencies like the Federal Home Loan Bank, the Federal Farm Credit Bank, or the Federal National Mortgage Association. These securities, while highly rated, are not backed by the full faith and credit of the U.S. government.
An in-depth exploration of government securities issued by the U.S. government, including Treasury bills, bonds, notes, and savings bonds.
An investment approach outlined by Benjamin Graham and David Dodd in their landmark book 'Security Analysis,' emphasizing the purchase of undervalued stocks with the expectation of eventual appreciation.
Green investing involves selecting stocks of companies that are eco-friendly, focusing on sustainability and environmental impact.
Gross Income Multiplier (GIM) is a real estate valuation metric used to evaluate an income-producing property's value by comparing its gross income to its purchase price or value.
Growth funds are mutual funds focused on investing in growth stocks with the goal of providing capital appreciation over the long term. These funds are typically more volatile compared to conservative income or money market funds.
Growth stock refers to shares of a corporation that have shown exceptional earnings growth and are expected to continue to perform better than average in terms of profit growth.
A Guaranteed Bond ensures the payment obligations, both principal and interest, by an entity other than the issuing party. Commonly seen in railroad bonds, it assures security holders of income in exchange for relinquishing control.
A comprehensive examination of Guaranteed Income Contracts (GICs), their structure, benefits, risks, and applications in corporate profit-sharing and pension plans.
High Flyers are stocks that exhibit high volatility often associated with unproven high-technology companies. They experience sharp price movements over short periods.
A comprehensive guide to high-grade bonds rated AAA or AA by Standard & Poor's or Moody's rating services.
Explore the intricacies of high-tech stocks, companies involved in fields such as computers, semiconductors, biotechnology, robotics, or electronics, known for above-average earnings growth and volatile stock prices.
A comprehensive exploration into the concept of high leveraging in business and investment, including its implications, risks, and strategies.
A thorough exploration of the concept of 'Historic Low', the lowest price paid for a security over a specified period or since it began trading. Understand the significance, applications in investment strategy, and related terms.
Historical Yield refers to the yield provided by a mutual fund, typically a money market fund, over a particular period of time, used to assess past performance.
The Holder of Record is the owner of a company's securities as recorded on the issuer's books or its transfer agent on a specific date.
An in-depth definition of the holding period, its significance in tax purposes, and its influence on capital gain or loss classification.
The period during which an investment is expected to be held before being sold or terminated.
Hybrid investments or securities combine characteristics of multiple asset types, such as bonds and derivatives, to offer unique risk-return profiles and benefits.
A comprehensive guide to Series I Bonds, including definitions, types, examples, and applications.
Ibbotson & Associates, known for providing extensive historical data on financial investments, publishes the annual Stocks, Bonds, Bills & Inflation (SBBI) Yearbook, widely used by investors and analysts.
Detailed explanation of 'In The Money' options, including definitions for call and put options, calculations, examples, historical context, and FAQs.
In-kind distribution refers to the distribution of assets or property instead of selling assets and distributing the cash proceeds.
A comprehensive explanation of inactive stocks or bonds, their characteristics, implications for investors, and key considerations.
Detailed explanation of Incentive Stock Options (ISOs), their tax implications, types, and examples.
An Income Bond's payment of interest is contingent on sufficient earnings from year to year. Such bonds are traded flat—that is, with no accrued interest—and may be used to avoid bankruptcy.
An Income Fund is a type of mutual fund that aims to generate steady income for its shareholders, typically through a mix of bonds and dividend-paying stocks. This entry explores different types of income funds and their characteristics.
An income stream refers to the regular flow of money generated by a business or investment. Its value can be estimated by discounting the cash flow to a present value.
Understanding Incremental Cash Flow, its importance in investment project evaluation, and its calculation.
Indenture is a formal agreement, also known as a deed of trust, between an issuer of bonds and the bondholder, covering various considerations like the form of the bond, amount issued, pledged properties, protective covenants, working capital and ratio, and redemption rights.
An Index Fund is a type of Mutual Fund designed to mirror the performance of a broad-based index such as the Standard & Poor's 500 Index. This investment strategy aims to reflect the market's overall returns.
Index Options are derivative securities that allow investors to trade in a particular market or industry group without having to buy all the individual stocks. They are available on several exchanges including New York, American, and Chicago Board Options exchanges.
An Individual Retirement Account (IRA) is a trust fund that allows individuals to contribute annually towards their retirement savings, often with tax benefits. Learn about the types, eligibility, limits, and tax implications.
An in-depth understanding of Industrial Development Bonds (IDBs), their definitions, types, special considerations, examples, historical context, and related terms.
An in-depth look at Industrial Revenue Bonds (IRBs), their functionalities, types, historical context, and regulatory aspects.
An inflation hedge is an investment designed to protect against the loss of purchasing power due to inflation. Traditional inflation hedges include gold and real estate, although growth in stocks can also offset inflation in the long run.
Comprehensive overview of Inflation-Indexed Securities including definitions, types, historical context, applicability, and related terms.
An Initial Public Offering (IPO) represents a corporation's first offering of stock to the public. This significant event in the business lifecycle allows companies to raise capital from public investors.
An in-depth look at Institutional Investors: their types, roles, and impact on financial markets, including mutual funds, banks, insurance companies, pension funds, labor union funds, corporate profit-sharing plans, and college endowment funds.
An insured account is a financial account at a bank, savings and loan association (S&L), credit union, or brokerage firm that is protected by federal, state, or private insurance organizations. This entry explores various types, coverage limits, and implications of insured accounts.
An in-depth exploration of interest rate swap agreements, their functioning, types, historical context, and practical applications.
An in-depth examination of interest-rate risk, its implications for portfolio valuation, examples, and mitigation strategies.
Internal Rate of Return (IRR) is a financial metric used to evaluate the profitability of an investment. It equates the value of cash returns with cash invested, considers compound interest, and requires a trial-and-error approach for solution.
The Internal Rate of Return (IRR) is a financial metric used to evaluate the profitability of an investment, representing the discount rate at which the net present value (NPV) of all cash flows equals zero.
An in-depth guide to intrinsic value, including its definition, types, examples, historical context, and applicability in various fields.
Invest: The act of committing capital to an enterprise with the goal of securing income or profit. This encompasses a variety of financial strategies, market areas, and economic activities aimed at generating returns.
Comprehensive guide on the concept of investment, detailing different types, examples, and key considerations in the pursuit of income or capital gain.
A service providing professional investment advice for a fee, necessitating registration with the Securities and Exchange Commission and compliance with the Investment Advisers Act.
A comprehensive study of the likely return from a proposed investment for evaluating its feasibility, suitability, and value.
An Investment Club is a group of individuals who pool their assets to make joint investment decisions, typically contributing a set amount of capital regularly and voting on investment choices.
An in-depth exploration of Investment Companies, including Real Estate Investment Trusts (REITs), Regulated Investment Companies (RICs), and the specific regulations governing them.
Investment Counsel refers to a professional who provides investment advice to clients and executes investment decisions, ensuring optimal financial planning and asset management.
Investment Credit, often referred to as Investment Tax Credit (ITC), is a tax incentive that allows businesses to deduct a certain percentage of investment costs from their tax liability.
The Investment Life Cycle refers to the time span from acquisition of an investment to its final disposition. It is crucial for measuring the rate of return. This entry explores its phases, significance, and how it impacts financial decisions.
A comprehensive guide to investment management decisions concerning asset selection, as contrasted with property management of real estate or custodial care of investments.
An in-depth guide to the diversification of investment portfolios, discussing securities, risk management, and benefits.
A comprehensive overview of investment strategy, detailing the process and considerations for allocating assets among various investment choices to achieve financial objectives based on individual investor profiles.
Understand the concept of Investment Value, its determinants, and its differences from Market Value.
The Inwood Annuity Factor is a number used to determine the present value of a level-payment income stream, based on a specific interest rate, similar to the Ordinary Annuity Factor. It simplifies the calculation of the present value of periodic payments.
An Individual Retirement Account (IRA) is a tax-advantaged investing tool that individuals use to earmark funds for retirement savings.
An issuer is a legal entity with the power to issue and distribute securities, including corporations, municipalities, foreign and domestic governments, their agencies, and investment trusts.
A detailed look into Jumbo Certificates of Deposit, high-denomination time deposits typically used by large financial institutions, featuring their characteristics, benefits, and considerations.
A comprehensive overview of what constitutes a junior issue in finance, including its implications, types, examples, and comparisons with other securities.
Junior security refers to a class of securities that hold a subordinate claim on the assets and income of an entity compared to senior securities.
Junk bonds, also known as high-yield bonds, have a speculative credit rating of BB or lower by Standard & Poor's and Moody's. These bonds are typically issued in leveraged buyouts and other takeovers by companies with short track records or questionable credit strength.
An in-depth exploration of the concept of Justified Price, how it is determined, and its implications in various asset markets including stocks, bonds, commodities, and real estate.
Comprehensive coverage of Kangaroo Bonds, covering their definition, types, special considerations, and historical context. Understand the key aspects and benefits of Kangaroo Bonds in this detailed entry.
A kicker, also known as a sweetener, is a feature added to a debt obligation to enhance its marketability by offering prospects of equity participation, such as convertibility to stock or ownership participation in mortgage loans.
The Krugerrand is a gold bullion coin minted by the Republic of South Africa, containing one troy ounce of gold. It is one of the most frequently traded gold coins worldwide.
Laddering is an investment strategy involving the purchase of bonds that mature at different intervals, providing regular income and mitigating interest rate risk.
Land Banking involves purchasing land that is not presently needed but is expected to be required in five to ten years, providing a strategic approach for future growth and development.
An in-depth exploration of large-cap stocks, their significance, characteristics, and the role they play in investment portfolios.
A comprehensive guide to Legal Investments, including definitions, qualifications, guidelines, and related fiduciary responsibilities.
Legging-In is the process of entering into a hedging contract after becoming a debtor or creditor under a debt instrument, with gains or losses deferred until the debt instrument matures or is disposed of.
An in-depth exploration of Letter Stock, an unregistered category of stock noted for its restrictions and unique characteristics within the securities market.
A Level-Payment Income Stream, often referred to as an annuity, represents a series of equal financial payments made at regular intervals over a specific period of time.
A Leveraged ESOP is an Employee Stock Ownership Plan that borrows money to purchase employer stock, providing a powerful tool for financing corporate growth and offering employees equity compensation.
An in-depth understanding of liquidity, the ability to convert assets into cash, its types, importance, and application in finance and investments.
An in-depth exploration of listed options, their types, uses, historical context, and regulatory framework in financial markets.
A comprehensive overview of listed securities, including their definitions, types, historical context, and differences from unlisted securities.
Comprehensive overview of the minimal tests a company must meet for its stock to be listed on various stock exchanges, with a focus on the New York Stock Exchange (NYSE) which has the most rigorous requirements.
In-depth exploration of Load Funds in the context of Mutual Funds, including definitions, types, examples, historical context, comparisons, and related terms.
Comprehensive explanation of the term 'Locked In' in finance, covering assured rates of return, protected profits, market positions, and tax considerations.
