A long bond is a type of bond that has a maturity date of more than 10 years. This type of bond often yields higher returns due to the increased risk associated with the extended commitment period.
A comprehensive exploration of Margin Call, explaining its definition, types, considerations, examples, historical context, applicability, related terms, and more.
A comprehensive overview of market index numbers representing weighted values of the components that make up the index, including stock market indices weighted by prices and outstanding shares.
A Market Letter is a newsletter provided to brokerage firm customers or written by an independent market analyst, registered as an investment adviser with the Securities and Exchange Commission, who sells the letter to subscribers.
Market Timing involves deciding when to buy or sell securities based on economic and technical factors. It requires analyzing the market's direction, economic strength, interest rates, stock prices, and trading volume.
Marketable securities refer to financial instruments that are liquid, can be quickly converted into cash, and are often kept as short-term investments on a corporation's balance sheet. Examples include government securities, banker's acceptances, and commercial paper.
A comprehensive guide to Master Limited Partnership (MLP), including its definition, structure, legal considerations, examples, and historical context.
The maturity date is a crucial term in finance and insurance that signifies the time at which a bond, life insurance proceeds, or endowment are paid. It can be either at the death of the insured or at the end of the endowment period.
A comprehensive analysis of the mean return, its calculation in security analysis and capital budgeting, alongside historical context, examples, and related concepts.
The Medallion Stamp Program is an initiative approved by the Securities Transfer Association that enables participating financial institutions to guarantee signatures on stock certificates or stock powers, ensuring authenticity and reducing fraud.
An intricate financial tool which sits in a company's capital structure, subordinated to senior debt yet superior to junior debt, and often blending debt and equity features.
Microcap stocks refer to shares of very small companies with market capitalizations typically below $250 million. These investments carry unique risks and opportunities.
A detailed exploration of Minority Discount, a reduction from the market value of an asset due to minority interest owners' inability to direct business operations.
A Monthly Investment Plan allows investors to put a fixed dollar amount into a specific investment each month, leveraging dollar cost averaging to build wealth over time.
Morningstar is a Chicago-based company renowned for its comprehensive evaluation of mutual funds, offering a risk-adjusted performance rating system using a five-star scale.
A type of Real Estate Investment Trust (REIT) that focuses on lending capital for real estate mortgages. Mortgage REITs generate revenue primarily through the interest they earn on mortgage loans.
A mortgage-backed certificate is a financial instrument backed by mortgages, where investors receive payments from the interest and principal on the underlying mortgages.
An important financial metric, the Multiple or Price-Earnings (P/E) ratio, provides insight into the valuation of a company's stock relative to its earnings.
A municipal bond is a bond issued by a state or local government body such as a county, city, town, or municipal authority. Interest earned is generally not taxable by the U.S. government, nor in the jurisdiction that issued it.
A Municipal Revenue Bond is a bond issued by a municipality to finance public works such as bridges, tunnels, or sewer systems, and is supported directly by the revenues generated from these projects.
A naked option refers to an options contract for which the seller or buyer does not hold the underlying security. This concept in options trading entails significant risk, as the writer of the naked option could be exposed to substantial losses if the market moves unfavorably.
A comprehensive analysis of Negative Carry, a situation where the cost of borrowed money exceeds the yield on financed securities, leading to a financial loss.
Net Present Value (NPV) is a financial metric used to evaluate the expected financial performance of an investment by comparing the present value of cash inflows to the present value of cash outflows, determining whether the investment is likely to be profitable.
An in-depth exploration of net transactions, where buyers and sellers engage in securities transactions without fees or commissions, including historical context and examples.
An in-depth look into net yield, its calculation, importance in investment, comparison with current yield and yield-to-maturity, and real-world applications.
An in-depth exploration of stocks reaching new high or low prices within the last 52 weeks, including their significance, influencing factors, and implications for investors.
A no-load fund is a type of mutual fund offered by open-end investment companies that imposes no sales charge on shareholders. Investors buy shares directly from these funds, bypassing brokers, and avoiding the fees associated with load funds.
A noncompetitive bid is a way for smaller investors to purchase U.S. Treasury bills at the average price of competitive bids accepted by the Treasury. Learn the intricacies, applications, and benefits of noncompetitive bidding.
A Nondiscretionary Trust is an investment trust limited to securities listed at its inception, with predetermined asset allocation parameters. Often referred to as a fixed investment trust.
A nonrefundable provision in a bond indenture restricts the issuer's ability to retire bonds using proceeds from a subsequent issue, offering protection to bondholders until a specified date.
Nonvoting stock represents corporate securities that do not provide the holder with voting privileges on corporate resolutions or the election of directors, often used in certain financial maneuvers such as takeover defenses.
An omitted dividend is a dividend that was scheduled to be declared by a corporation but was not voted on by the board of directors. This article explains the reasons behind omitted dividends, their implications, and how they relate to cumulative preferred stock.
Comprehensive overview of online trading which involves buying and selling stocks or other securities through the Internet without a traditional broker.
An in-depth exploration into open interest, detailing the total number of contracts in a commodity or options market that are still outstanding, breaking down its implications, calculation methods, historical context, and its significance in financial markets.
An in-depth look into open-end investment companies, also known as mutual funds, which continually accept new investments and allow withdrawals based on the current net asset value (NAV).
An Open-End Management Company is a type of investment company that sells mutual funds to the public, continually creating new shares upon demand and allowing shareholders to buy or redeem these shares at the net asset value.
An exploration of the concept of leveraging other people's money (OPM) in financial ventures, including definitions, types, applications, and historical context.
Overbought conditions occur when a security has experienced an unexpectedly sharp price rise and is vulnerable to a correction. Understanding this concept can help investors anticipate potential market movements.
An overvalued stock is a stock whose current price does not seem justified given its financial performance and market conditions. It is therefore expected that the stock price will drop.
An in-depth look into Paired Shares, also known as Siamese shares or stapled stock, where two companies under the same management sell their stock as a unit.
PAPER credit refers to debt evidenced by a written obligation that is backed by property, often used in contexts where the seller finances a sale. Commonly referred to in slang simply as 'paper.'
Paper gold certificates are financial instruments that represent ownership of a certain amount of gold. These certificates can be converted into physical gold at the issuer's office, whether private or governmental. Often used in exchanges for convenience.
An in-depth look at PAR, its importance in finance, the difference between stated value and market value, and its various applications in the world of negotiable instruments, stocks, and bonds.
A Participation Certificate is a financial instrument representing an interest in a pool of funds or other instruments such as a mortgage pool. It allows investors to share in the benefits of the pooled resources.
A pass-through certificate is an investment that receives income from another form, often a pool of mortgages, with income passed through to the certificate holders.
An in-depth explanation of Passive Income Generators (PIG) and their role in income generation, tax benefits, and financial planning. Coverage includes examples, comparisons with other income sources, and related terms.
An overview of the Patriot Bond, a special designation given to Series EE Savings Bonds after the September 11, 2001, World Trade Center terrorist attack.
An overview of the Payback Period method in capital budgeting, its calculation, benefits, limitations, and comparison with other methods like NPV and IRR.
An arrangement between employer and employee where a specified amount of money is deducted from the employee's pay and invested in stocks, bonds, or other investments.
A detailed exploration of performance funds, including their definition, investment strategy, risk considerations, historical context, and practical examples.
A portfolio manager is a professional responsible for overseeing and managing the securities portfolio of individual or institutional investors. They may work for mutual funds, pension funds, profit-sharing plans, bank trust departments, insurance companies, or private investors.
Position refers to the act of strategically placing oneself or a company in a certain area; it also has specific meanings in banking, finance, and investments, such as a bank's net balance in a foreign currency, a firm's financial condition, or an investor's stake in a particular security.
Positive Leverage refers to the strategic use of borrowed funds that amplify the returns on an investment. This Financial concept is contrasted with Reverse Leverage and is fundamental in Financial Management and Investment Strategies.
The Positive Yield Curve describes a common scenario where long-term debt securities have higher interest rates compared to short-term debt securities of the same quality.
A comprehensive examination of precious metals, including gold, silver, platinum, and palladium. This entry explores their intrinsic value, market dynamics, applications, and historical context.
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