An In-depth Look at Short Selling, its Mechanisms, and Implications
An entry explaining the Simple Rate of Return, a measure of investment performance that divides income and capital gains by the initial capital invested, excluding compounding effects.
Simple Yield measures the interest return on a bond relative to its current market price, offering a straightforward calculation for bondholders and debtors.
A sinking fund is a reserve created to pay off debt securities or preferred stock over time, ensuring gradual repayment and reducing default risk.
A comprehensive guide to sleeper stocks, their characteristics, and their significant potential for price gains once recognized by investors.
A Small Investor, often referred to as a retail investor, buys small amounts of stocks or bonds, typically in odd-lot quantities. This article delves into the roles, types, considerations, and examples related to small investors, along with historical context and related terms.
An overview of small-cap stocks, including their characteristics, market capitalization, and volatility compared to larger companies.
An in-depth look at socially conscious investments, highlighting their origins, types, principles, and impact on society and investing.
Soft dollars refer to indirect payments for brokerage services, allowing investors to use commission dollars for research and related services rather than direct payments.
An in-depth look at Sovereign Wealth Funds (SWFs), including their definition, types, examples, historical context, and applicability in global finance.
Comprehensive coverage of Standard & Poor's Depositary Receipt (SPDR), also known as 'spiders,' which are securities designed to track the performance of the S&P 500 Index.
A comprehensive description of special situations in the stock market, involving stocks that are expected to change in value due to imminent events or exhibit high daily fluctuations due to specific news developments.
Detailed explanation of speculation in financial markets, including types, examples, comparisons with gambling and investment, and historical context.
A comprehensive overview of speculative risk, which entails the uncertainty of financial loss or gain, with examples, special considerations, and related terms.
Refer to SPDR for more information about Standard & Poor's Depositary Receipts (SPDRs), a type of exchange-traded fund.
A comprehensive overview of staggering maturities, a technique used by bond investors to lower risk by investing in bonds with various maturities.
An in-depth look at Standard & Poor's Corporation, a subsidiary of McGraw-Hill, Inc., known for its investment services including securities ratings, stock indexes, and financial information.
An in-depth look into the Standard & Poor's Index, which tracks the performance of 500 widely held common stocks and is commonly known as the S&P 500.
A comprehensive analysis of Standard & Poor's Rating system, which classifies stocks and bonds according to their risk, issued by Standard & Poor's Corporation.
An in-depth look into stock buybacks, also known as share repurchase plans, where companies buy back their own shares from the marketplace.
A stock certificate is a formal instrument evidencing a share in the ownership of a corporation. This document represents the shareholder's equity stake in the company.
An in-depth look at stock dividends, where a corporation pays a dividend to its shareholders in the form of additional shares rather than cash. Learn about types, examples, and implications.
An overview of Stock Index Futures, including their features, types, and uses in speculation and hedging against market declines.
Understand the intricacies of stock options, a key financial instrument offering opportunities for investment, speculation, and employee compensation.
A detailed explanation of the Stock Power Power of Attorney form, its purpose in transferring ownership of a registered security, and its use in financial transactions.
A comprehensive overview of Stock Purchase Plans, how they benefit employees, and their implications for companies.
Comprehensive explanation of stock rights, also known as subscription rights or warrants, covering their types, uses, and examples in the context of stock markets and investments.
An in-depth look at stock splits, their types, implications, and historical significance in financial markets.
A Stock-Transfer Agent specializes in managing and executing the transfer of stock ownership and maintaining comprehensive records of shareholders.
Detailed annual publication by Ibbotson & Associates providing comprehensive historical data and analysis on stocks, bonds, bills, and inflation.
A comprehensive guide to understanding and leveraging the Straddle position in options trading to benefit from market volatility.
Straight Debt refers to a debt instrument with a fixed repayment schedule, fixed interest rate, and no convertibility features.
A term referring to securities held in the name of a broker or another nominee instead of the customer, facilitating easier transfer at the time of sale.
A Stretch IRA is an Individual Retirement Account (IRA) set up in a way that extends the period of tax-deferred earnings beyond the lifetime of the owner.
This entry refers to STRIPS in the context of stripped coupon bonds.
STRIPS Bonds, also known as Separate Trading of Registered Interest and Principal of Securities, are pre-stripped zero coupon bonds that are direct obligations of the U.S. Treasury. This entry provides an in-depth look at STRIPS Bonds, their characteristics, and applications.
Comprehensive definition and explanation of subordinated debt, its types, special considerations, examples, historical context, and related terms in finance.
The Subscription Price is the price at which existing shareholders of a corporation are entitled to purchase common shares during a rights offering, or the price at which subscription warrants can be exercised.
An in-depth look at the subscription privilege, which grants existing shareholders the right to purchase additional shares of a new stock issue before it is available to the public.
An in-depth exploration of support levels, a key concept in technical analysis, where a security price tends to halt its decline due to increased demand.
Detailed exploration of sweat equity, its value, types, examples, and applicability in real estate and business.
A 'Sweetener' refers to an added feature in a securities offering designed to make the securities more attractive to purchasers.
Switching refers to the process of moving assets from one mutual fund to another. This can occur either within the same fund family or between different fund families.
A comprehensive look into the role of a syndicator in the business world, including definitions, examples, and historical context.
An in-depth exploration of systemic risk, its measurement, types, examples, and implications in the financial market. Also known as market risk or systematic risk, and commonly measured by the beta coefficient.
Taking a flier refers to the act of engaging in highly speculative investments with a significant risk of loss.
To buy stock in a company with the intent of long-term holding or taking control, including regulatory requirements and strategic inventory management.
A Tax Anticipation Bill (TAB) is a short-term obligation issued by the U.S. Treasury, offering a secure investment option for corporations to manage their tax payments efficiently.
A former tax deferral tactic used by investors to postpone tax liabilities by creating artificial losses in the current year and realizing gains in the subsequent year.
Tax-Deferred refers to an investment whose accumulated earnings are free from taxation until the investor takes possession of the assets.
A comprehensive guide to tax-exempt securities, with a deep dive into their types, applications, and examples.
Technical Analysis involves the examination of trading volume and price studies to predict price movements. By utilizing charts or computer programs, technical analysts aim to identify market trends.
Understanding the process of shifting assets from one mutual fund to another by telephone, either within the same family of funds or across different families of funds.
A tender offer is a public, open offer or invitation to all shareholders of a publicly traded corporation to tender their stock for sale at a specific price during a specified time.
A Term Bond is a bond from a single issue that matures on the same date. These bonds may have a call feature that allows the issuer to redeem them before the maturity date.
The Third Market involves non-exchange-member broker-dealers and institutional investors engaging in over-the-counter (OTC) trading of exchange-listed securities, offering an alternative trading platform with benefits such as lower transaction costs and extended trading hours.
A Ticker Symbol is a unique series of letters assigned to a security or stock for trading purposes on a particular stock exchange.
An in-depth exploration of Times Fixed Charge, its relevance, calculation, and implications in finance.
Tombstone Advertisement in the context of investment banking involves placing offers in newspapers, providing essential details about public offerings of securities, and listing underwriting group members. Its name is derived from its appearance.
A comprehensive guide to the Top-Down Portfolio Approach, a method where investors first analyze macroeconomic trends before selecting industries and companies that benefit from those trends.
A detailed explanation of the concept of topping out in financial markets, including its significance, types, indicators, and historical context.
A comprehensive overview of Trading Authorization, the document that grants brokerage firm employees the authority to execute transactions on behalf of customers.
A comprehensive guide to understanding Trading Range in commodities and securities, including definitions, examples, and related terms.
Treasuries are negotiable debt obligations of the U.S. government, secured by its full faith and credit. They are issued at various schedules and maturities, and their income is exempt from state and local, but not federal, taxes.
Comprehensive guide to Treasury Bills (T-Bills), their structure, types, benefits, historical context, and practical applications.
Treasury Inflation-Protected Securities (TIPS) are U.S. government bonds designed to protect investors against inflation by adjusting the principal according to the Consumer Price Index (CPI).
Treasury Inflation-Protected Securities (TIPS) are inflation-indexed Treasury bonds whose principal is adjusted according to the Consumer Price Index (CPI). These securities pay a small rate of interest, with the principal increasing along with inflation as measured by the CPI.
Treasury Investors Growth Receipt (TIGER) are U.S. government-backed bonds stripped of their coupons sold at a deep discount from their face values, providing maturity value without periodic interest payments.
An in-depth look at Treasury Notes, including their characteristics, types, benefits, and comparative analysis with other investment options.
Comprehensive definition and explanation of treasury stock, its uses, implications, and related financial concepts.
An electronic system enabling individual investors to make noncompetitive bids on U.S. Treasury securities, bypassing banks and broker-dealers to avoid fees.
A detailed guide on Trust Companies, their roles, functions, regulations, and significance in financial and estate planning.
A trust share entitles the holder to a portion of the profits and provides partial participation and ownership in a corporation's management.
A comprehensive explanation of the term 'turkey' in business and investment contexts, detailing its use in describing disappointing investments or business decisions.
The 'Two and Twenty' fee structure is a common compensation model for hedge fund managers, where 2% of total asset value is charged as a management fee and an additional 20% of profits is taken as a performance fee.
A comprehensive encyclopedia entry on U.S. Savings Bonds, a fixed-income security issued by the U.S. Department of the Treasury, including types, special considerations, historical context, and more.
An in-depth exploration of uncovered options, including types, examples, risks, and historical context in finance.
An in-depth exploration of the underlying futures contracts, which serve as the basis for options on futures. This includes definitions, examples, historical context, applications, and related terms.
Detailed overview and comprehensive definition of Underlying Security in the context of financial derivatives and securities.
Explore the concept of an undervalued security, its causes, implications, and relevance in financial markets.
Comprehensive explanation of the term 'Underwater' in various financial contexts, including loans, options, and investment portfolios.
Unit Investment Trust (UIT) is a type of investment vehicle registered with the SEC under the Investment Company Act of 1940. UITs purchase a fixed portfolio of securities, including bonds and stocks.
Comprehensive overview of unlisted securities, their trading mechanism in the over-the-counter market, and their significance within financial markets.
Unloading refers to the act of selling off large quantities of merchandise or securities, typically below market prices, either to quickly raise cash or to avoid further losses.
A comprehensive overview of Unpaid Dividends, detailing their implications, types, historical context, and related terms.
A comprehensive guide to Unrealized Appreciation, its implications, and how it contrasts with Unrealized Depreciation.
Unrealized Profit (Loss) refers to the gain or loss that is theoretical and has not yet been actualized through the sale of a security or commodity futures contract. Learn more about its implications and how it differs from realized profit (loss).
An in-depth exploration of Upside Potential, the amount of upward price movement an investor or an analyst expects of a particular stock, bond, or commodity.
The vacancy rate represents the percentage of all units or spaces that are unoccupied or not rented. It is a crucial metric in real estate and finance, used to estimate the vacancy allowance on a pro-forma income statement, which is then deducted from Potential Gross Income (PGI) to derive Effective Gross Income (EGI).
Value Investing is an investment philosophy that focuses on buying stocks that are trading at bargain prices based on fundamental analysis, and holding them until they become fully valued.
Comprehensive investment advisory service that ranks stocks for timeliness and safety, projecting relative price performance.
Venture Capital is a crucial source of financing for start-up companies and others embarking on new or turnaround ventures, offering the potential for above-average future profits despite entailing some investment risk.
A detailed explanation of the term Vested Interest, including its types, applications in various fields, historical context, and frequently asked questions.
Discover the meaning, historical context, application, and implications of volatility in financial markets and other domains, including detailed explanations of the Beta Coefficient.
A comprehensive guide to understanding the Voluntary Accumulation Plan, an investment strategy allowing mutual fund shareholders to accumulate shares on a regular, discretionary basis.
A Vulture Fund is a type of limited partnership that invests in depressed property, often real estate, aiming to profit when prices rebound.
A comprehensive guide to understanding the concept of wash sales, their tax implications, and related rules.
An in-depth look into 'WHEN ISSUED' securities, focusing on condition-based transactions occurring before the formal issuance of authorized financial instruments, such as stocks, bonds, and U.S. Treasury securities.
Widow-and-Orphan Stock refers to a type of stock that pays high dividends and is considered very safe. Typically, these stocks have a low beta coefficient and are involved in non-cyclical businesses.
Wildcat Drilling involves the exploration of oil or natural gas in unproven, often remote areas, posing high risks but potentially yielding substantial rewards.
