Preferred dividends are distributions from corporate earnings and profits paid to owners of preferred stock, taking priority over payments to common shareholders.
Preferred Dividend Coverage explains how well a firm can meet its preferred dividend obligations using its net income after interest and taxes, but before common stock dividends.
Preferred Stock is a category of capital stock that provides certain privileges over common stock, including priority in dividend distribution and asset allocation upon dissolution of a corporation.
The Preliminary Prospectus, also known as the red herring, is the first document released by an underwriter of a new issue to prospective investors, detailing financial aspects of the issue subject to change before the final prospectus.
A comprehensive overview of Premium Bonds, which are bonds sold at a price above their face or redemption value, along with tax amortization details.
A comprehensive overview of premium income, a type of income received by investors through the sale of put or call options. Includes definitions, types, considerations, examples, historical context, applicability, comparisons, related terms, FAQs, references, and a final summary.
Presale involves the sale of proposed properties, such as condominiums, before construction begins. This often allows developers to secure funding like construction loans.
Understanding Present Value, Calculations, Applications, and Historical Context. A comprehensive guide on present value and its significance in finance and investments.
The present value (worth) of 1 represents the current value of a future amount based on a given compound interest rate. It is a critical concept in finance for understanding the value of cash flows over time.
The present value of an annuity represents today's worth of a level stream of income to be received each period for a finite number of periods. It is calculated using a specific formula involving the interest rate and number of periods.
In-depth analysis of a presold issue, specifically focusing on municipal bonds or government bonds completely sold out before public announcement of price or yield.
The pretax rate of return measures the yield or capital gain on a particular security before accounting for an individual's tax situation. It helps in evaluating investment performance without tax considerations.
The Price-Earnings (P/E) Ratio is a crucial financial metric used to evaluate the valuation of a company's stock by measuring its current share price relative to its per-share earnings.
An in-depth exploration of the Price/Book Ratio, an essential metric for evaluating whether a stock is undervalued or overvalued.
An in-depth explanation of the primary distribution in finance, encompassing the sale of a new issue of stocks or bonds, distinguishing it from secondary distribution.
A comprehensive overview of the primary market, detailing its role, types, functioning, historical context, and its differentiation from the secondary market.
Prime Paper, a type of commercial paper, represents the highest quality short-term debt issued by corporations. Rated by major rating agencies such as Moody's, it is considered investment-grade, thus presenting a lower risk for investors.
Understanding the principal amount or face value in the context of financial instruments such as bonds and loans, its implications, taxation, and related concepts.
Prior-Preferred Stock is a category of Preferred Stock that holds precedence over other preferred stock issues and common stock in terms of dividend payments and claims on assets during liquidation.
Comprehensive overview of Private Equity Fund, including structure, function, types, historical context, and investment strategies.
A comprehensive look at private issues, commonly referred to as private placements, detailing their structure, benefits, types, and regulatory considerations.
An investment or business opportunity offered for sale to a select group of investors, typically exempt from full registration requirements by the SEC and state securities laws.
An in-depth exploration of profit taking as a strategy employed by traders to secure gains by selling assets following a short-term price increase, and its impact on market movements.
A comprehensive guide to understanding and implementing profit-taking strategies in investments and trading.
An in-depth look at the Proxy Statement, which encompasses essential information mandated by the SEC for shareholders before proxy voting.
A comprehensive overview of Public Offering, its types, regulatory requirements, examples, historical context, and related terms.
An in-depth exploration of Purchase Capital—its importance, components, and applications in business and investments.
A put option contract grants the holder the right to sell a specific number of shares at a specified price by a certain date. It is considered a capital asset when held by a nondealer.
Understanding 'Put to Seller': Used when a Put Option is exercised, obligating the writer to buy the underlying shares at the agreed-upon price.
A detailed overview of the Qualified Tuition Program (529 Plan), a tax-advantaged savings plan designed to encourage saving for future education costs.
A rally refers to a significant increase in the price of a security, commodity future, or market after a period of decline or flat movement.
A comprehensive analysis of the Rate of Return on Equity (ROE), explaining its significance, calculation, and application in evaluating profitability.
A comprehensive overview of raw land, including its definition, characteristics, potential uses, and considerations.
A Real Estate Limited Partnership (RELP) is a type of limited partnership that invests in properties and passes rental income through to limited partners.
The Real Rate of Return represents the return on investment adjusted for inflation, reflecting the actual purchasing power gained or lost. It is a crucial metric for investors to assess the true profitability of their investments over time.
Comprehensive understanding of the Recapture Rate in appraisal, including its methods, calculations, and relevance in deriving the Capitalization Rate.
An in-depth look at the concept of Record Date within the financial realm, covering its significance, how it relates to ex-dividend date and payment date, and its implications for investors.
A Red Herring is a preliminary prospectus filed by companies intending to go public. It provides essential information to potential investors but lacks specific details, such as the price range and number of shares being offered.
Redeemable bonds, also referred to as callable bonds, provide issuers with the flexibility to manage debt efficiently by repaying the bond before its maturity.
A comprehensive guide to understanding redemption fees, their context in finance, and their application in various investment scenarios.
An in-depth exploration of the Redemption Price in financial instruments, its significance, calculation, and implications for investors.
A Registered Bond is a type of bond recorded in the name of the holder on the books of the issuer or the issuer's registrar and can be transferred to another owner only when endorsed by the registered owner. Contrast this with Coupon Bonds to understand their differences and functions.
A comprehensive overview of a Registered Investment Company, its types, regulatory framework, and importance in the financial markets.
A Registered Representative (RR) is an employee of a stock exchange member broker/dealer who acts as an account executive for clients, providing advice on which securities to buy and sell. Licensed by the SEC and NYSE, RRs earn compensation through commission income.
An in-depth examination of registered securities, including their types, special considerations, historical context, and more.
A comprehensive guide to understanding Regulated Investment Companies (RICs), including their definitions, types, special considerations, examples, historical context, and applicability.
This entry covers the concept of the reinvestment rate - the rate of return from reinvesting the interest earned from bonds or other investments. It details how reinvestment rates differ between zero coupon funds and regular interest-paying bonds.
A detailed overview of Real Estate Mortgage Investment Conduits (REMICs), their structure, function, applications, and regulations in the financial and real estate industries.
An in-depth examination of rent rolls, including their definition, components, applications, and significance in the real estate industry.
Resale Price refers to the anticipated selling price of a property at the end of a specified projection period, commonly used in investment performance projections.
Reset Bonds are unique financial instruments where the interest rate is periodically adjusted to ensure the bonds trade at their original value. They are designed to mitigate interest rate risk and provide stability to investors.
Comprehensive Coverage of Restricted Securities, Including Definition, Types, Historical Context, Applicability, and Related Terms
Return of Capital refers to a distribution from a corporation that is not paid out of earnings and profits. It reduces the shareholder's investment basis in the stock.
Return on Investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of several different investments.
Revenue bonds are municipal bonds that are repaid from the revenue generated by the specific project or service they finance, such as toll bridges, hospitals, and stadiums.
Risk Arbitrage involves simultaneous stock transactions in companies engaged in merger activities, aiming to profit from discrepancies between anticipated and actual acquisition prices.
Understanding Risk Premium in Portfolio Theory: A Key Concept in CAPM Reflecting Market-Related Risk
Exploring the financial concept of Risk vs. Reward, comparing potential fluctuations with benefits to assess the worthiness of an investment.
A comprehensive examination of risk-averse investors, including their preferences, behaviors, implications in various markets, and comparisons to other types of investors.
The Risk-Free Rate is the interest rate on the safest investments, typically federal government obligations, and serves as a benchmark for evaluating other investment opportunities.
Understanding the Risk-Return Trade-Off in investment management, where potential returns rise with an increase in risk.
A riskless transaction is a trade that guarantees a profit to the trader who initiates it, usually by exploiting market inefficiencies. See also [Arbitrage].
A Royalty Trust is an investment vehicle in which an oil or gas company spins off its producing properties, providing significant tax benefits and steady income to shareholders.
A comprehensive overview of the S&P 500, a widely-used stock market index in the United States representing 500 of the largest companies.
An in-depth overview of politically secure currencies such as the American dollar, the euro, and gold, commonly referred to as safe havens.
A comprehensive guide to understanding the safe rate, which is an interest rate provided by low-risk investments such as high-grade bonds or well-secured first mortgages.
A Salary Reduction Plan allows employees to have a certain percentage of their gross salary withheld and invested in options like stocks, bonds, or money market funds.
A Comprehensive Guide to Understanding Sales Charges in Mutual Funds and Other Investments.
Sales Load, also known as Sales Charge, refers to the fee charged when purchasing or selling mutual fund shares. This entry covers definitions, types, examples, historical context, applicability, and related terms.
A comprehensive overview of U.S. Savings Bonds, their types, issuance, and historical context.
A detailed overview of scrip, including its definition, historical context, types, and applications in various fields such as finance, securities, and general transactions.
Seasoned issues are securities issued by companies recognized for their established quality and enjoy high liquidity in the secondary market.
An in-depth look at Secondary Distribution, a public sale of previously issued securities held by large investors, and its distinctions from Primary Distribution.
A Secondary Offering refers to the sale of shares that have already been issued to the public and are now being sold by current shareholders.
Section 1244 Stock offers unique tax treatment allowing investors to claim ordinary loss deductions on the disposition or worthlessness of the stock, up to $50,000 for individuals and $100,000 for joint filers.
Explore the Secular Trust, a robust alternative to Rabbi trusts, providing enhanced security for executives in nonqualified deferred compensation plans.
Detailed explanation of Securities including types, historical context, examples, and key considerations.
A comprehensive overview of the role, responsibilities, and impact of a Securities Analyst in the financial markets and investment industry.
Comprehensive overview of securities markets, including organized exchanges and over-the-counter markets, their structure, functions, and significance.
Securitization is the financial process of pooling various types of contractual debt such as mortgages, auto loans, or credit card debt obligations and selling their related cash flows to third-party investors as securities.
Security Rating refers to the evaluation of credit and investment risk of a securities issue by commercial rating agencies, such as Moody's, Fitch Ratings, and Standard & Poor's.
Learn about seed money, venture capitalists' initial funding contributions to help start-up businesses cover early-stage expenses.
A Self-Directed IRA (Individual Retirement Account) allows investors to actively manage and diversify their retirement holdings beyond traditional stocks, bonds, and mutual funds.
Detailed explanation of Selling Short, a strategy involving the sale of securities, commodities, or foreign currency not actually owned by the seller, aiming to buy them back at a lower price.
Senior refunding involves replacing securities maturing in 5 to 12 years with new issues having original maturities of 15 years or longer. This process helps reduce interest costs, consolidate issues, or extend maturity dates.
Senior security denotes a financial instrument with priority claim over junior obligations and equity in a corporation's assets and earnings. This term is fundamental in the hierarchy of claims during liquidation.
Sentiment indicators are metrics used to gauge the prevailing mood of investors, whether bullish or bearish. Technical analysts often use these indicators as contrary signals to predict market movements.
A SEP-IRA (Simplified Employee Pension Plan) is a retirement savings plan that offers tax advantages for business owners and self-employed individuals.
A Separately Managed Account (SMA) is a professionally managed portfolio of securities that uses pooled money to buy investments owned directly by the account holder.
An in-depth exploration of Serial Bonds, including definition, types, special considerations, examples, historical context, and more.
Series Bonds are a financial instrument used in fixed-income markets where bonds are issued at different times with varying maturities but governed by the same indenture. This entry explores their types, features, applications, and historical context.
A comprehensive entry on Series E Bonds, savings bonds issued by the U.S. Government from 1941 to 1979, including their features, issuance, interest accrual, and redemption processes.
Detailed explanation of Series EE Bonds, their types, applications, history, benefits, and government regulations.
A comprehensive overview of the Series HH Bond, a type of U.S. government bond once available in exchange for Series E or EE bonds, including its history, functions, and cessation.
A detailed entry on Series I Bonds, which are savings bonds designed to protect the purchasing power of investments and provide a guaranteed real rate of return.
A Shared-Appreciation Mortgage (SAM) is a residential loan with a fixed interest rate set below market rates, wherein the lender is entitled to a specified share of the appreciation in property value over a specified time interval.
An in-depth exploration of shareholders, their rights, types, roles, and significance within corporations, REITs, and mutual funds.
In-depth exploration of Shares of Beneficial Interest, covering their definition, types, applications, and related concepts.
A comprehensive explanation of short bonds, their types, financial implications, and applications in finance.
A comprehensive understanding of Short Position in commodities and securities, its implications, historical context, and practical applications.
