A detailed examination of the Cash-on-Cash Return method, which calculates yield by dividing annual dollar income by the total dollar invested. This entry also explores related measures such as Internal Rate of Return and Yield to Maturity.
The Chartered Financial Consultant (ChFC) is a professional designation awarded by The American College in Bryn Mawr, Pennsylvania. The designation signifies expertise in areas including insurance, investments, taxation, employee benefit plans, estate planning, accounting, and management.
In-depth overview of Classified Stock, its types, characteristics, and applicability in corporate finance.
The evolution of 'clipping coupons' from a financial habit involving coupon bonds to a modern-day practice of saving money through discounts.
A closed fund is a mutual fund that has stopped issuing shares due to its large size. Learn about its characteristics, types, and implications.
Understanding the Closed Period in Bond Issuance: its importance, implications, and relationship with callable bonds.
Common Stock Ratio: Understanding the Percentage of Total Capitalization Represented by Common Stock
An in-depth look at the Common Stock Ratio, its significance for creditors and investors, and its impact on financial leverage and safety.
Comprehensive explanation of the Compound Amount of One and how it represents the growth of $1 with compounded interest. Illustrated with a detailed example and formulae.
A comprehensive overview of the Compound Amount of One (CAO), including its definition, formula, examples, and historical context. Explore the importance and applications of CAO in finance, investments, and more.
A comprehensive guide to understanding compound interest, its calculations, frequencies, historical context, and applications.
An in-depth exploration of the contract interest rate, also known as the face interest rate, covering definitions, types, applications, and more.
An in-depth exploration of the contract rate, also known as the face interest rate, defining its relevance in financial agreements.
Conversion Parity is a financial term related to convertible securities and refers to the price at which convertible securities (like bonds or preferred shares) can be converted into common stock.
An in-depth look at Corporate Bonds, detailing their features, types, historical context, and more.
Understanding Cost Basis, its significance in financial calculations, and its implications for depreciation and capital gains or losses.
Understanding the Cost Method in accounting, where a parent company records its investments in subsidiary companies at cost, not recognizing periodically its share of subsidiary income or loss. This method is used when the parent owns less than 20% of the subsidiary's outstanding voting common stock or in instances of significant influence without effective control.
A comprehensive explanation of cost records, their importance in investment and accounting, and their different types with examples and historical context.
A comprehensive guide to Cumulative Dividends including their definition, types, examples, historical context, and applicability in finance, particularly associated with Cumulative Preferred Stock.
Cumulative Preferred Stock is a type of preferred stock where unpaid dividends accumulate until they are paid out, taking precedence over common stock dividends.
An exploration of Current Market Value, its determinants, calculations, and significance in various industries, such as real estate and investments.
Comprehensive Overview of CUSIP: A Standardized Identification System for Securities
In capital budgeting, the Cutoff Point represents the minimum acceptable rate of return on investments.
A cyclical stock is a type of equity that tends to rise quickly when the economy turns up and fall quickly when the economy turns down. Examples include housing, automobiles, and paper. Conversely, stocks of noncyclical industries, such as food, insurance, and drugs, are less directly affected by economic changes.
A comprehensive guide to understanding deferred gain, a financial term indicating any gain not subject to tax in the year realized but postponed until a later year.
A Defined-Contribution Pension Plan is a retirement plan in which the amount of contributions is fixed, but the benefits vary based on investment performance. This article provides comprehensive details on types, benefits, examples, and comparisons with defined-benefit plans.
The Depository Trust Company (DTC) is a central entity for electronic exchange of stock and bond certificates, owned by major financial institutions and exchanges on Wall Street.
An in-depth explanation of depreciable realty, including criteria for depreciation, legal frameworks, and practical examples.
A descriptive memorandum serves as an offering circular for property or securities when a full prospectus is not required. It provides essential information to potential investors.
A detailed explanation of a 'DIP' in securities prices, its relevance in trading strategies, and advice for investors.
Comprehensive overview of disclosure in the context of investments, covering requirements by the Securities and Exchange Commission (SEC) and stock exchanges.
Comprehensive guide on Discount Bonds, their types, examples, historical context, and comparisons with related financial instruments.
Diversify is the practice of spreading investments across various assets to reduce risk.
A comprehensive overview of Dividend Yield, which represents the annual percentage of return earned by an investor on a common or preferred stock.
A detailed explanation of the Dow Jones Industrial Average (DJIA), the most widely followed benchmark of stock market performance, including its components, history, and impact.
A comprehensive guide to Education IRAs, also known as Coverdell Education Savings Accounts, including structure, benefits, and usage.
Endowment is a permanent fund of property or money bestowed upon an institution or person, with the income used to serve a specific intended purpose.
An in-depth exploration of Eurobonds, bonds denominated in foreign currencies and sold to investors outside their native countries.
Exchange-Traded Notes (ETNs) are senior unsecured debt instruments that track the performance of a specific index, offering a unique investment option with both returns and risks tied to the creditworthiness of the issuer.
Comprehensive explanation of the Expense Ratio, including its role in real estate and mutual funds, calculation methods, examples, and relevance.
Comprehensive explanation of extraordinary dividends, including their characteristics, implications, types, and examples.
The face amount of a bond, also known as its face value, is the nominal or par value of the bond, representing the amount paid back to the bondholder at maturity.
A detailed guide on what financial advisers do, their types, the importance of their role, and considerations when choosing a financial adviser.
Professional who analyzes personal financial circumstances and prepares a program to meet financial needs and objectives.
A detailed exploration of FIT Investments, covering various types, historical context, and applicability in modern financial markets.
A comprehensive guide to understanding fixtures, their legal implications, tax considerations, and examples.
An in-depth look into Foreign Direct Investment (FDI), including its types, significance, historical context, examples, and impact on the economy.
The Forward P/E ratio is a financial metric that measures a company's current share price relative to its expected earnings per share (EPS) over the next 12 months. Often used for valuation comparison among companies, this forward-looking measure offers insights into the growth expectations of a business.
A comprehensive overview of the term 'Fund' including its types, uses, historical context, examples, and related terms.
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.
Comprehensive understanding of Funds From Operations (FFO) in Real Estate and Finance.
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.
A comprehensive guide to Glamor Stock, including its characteristics, historical context, examples, and importance in the financial markets.
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.
Detailed explanation of Grantor Investments, their roles in options trading, real estate, and trust creation. Learn about call and put options, premium income, and the different types of grantors.
An in-depth look into the Greater Fool Theory, which suggests that the price of an overvalued stock or market can continue to rise as long as there are investors willing to pay a higher price.
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 detailed explanation of the term 'Hard Dollars', contrasting it with 'Soft Money' and 'Hard Money'.
The period during which an investment is expected to be held before being sold or terminated.
Hot issue refers to newly issued stocks that are in great public demand, often resulting in a significant price increase during their initial public offering (IPO) due to a higher demand than the available shares.
A comprehensive guide to Series I Bonds, including definitions, types, examples, and applications.
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.
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.
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.
Comprehensive coverage of intangible property, including its types, special considerations, examples, historical context, applicability, comparisons, related terms, and frequently asked questions.
Interest Income refers to the earnings generated from investments or transactions that reflect the time value of money or payment for the use or deferral of money.
Understand the concept of Investment Value, its determinants, and its differences from Market Value.
An Investor is a party who purchases an asset with the expectation of financial rewards. Typically, an investor exercises greater due diligence or conservatism than a speculator.
A comprehensive overview of what constitutes a junior issue in finance, including its implications, types, examples, and comparisons with other securities.
An in-depth exploration of large-cap stocks, their significance, characteristics, and the role they play in investment portfolios.
The 'Last Sale' refers to the most recent trade of a particular security, distinct from the closing sale at the end of a trading session.
A comprehensive overview of a Legal List, which is a selection of high-quality securities approved by state agencies for holdings by fiduciary institutions.
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.
An in-depth understanding of liquidity, the ability to convert assets into cash, its types, importance, and application in finance and investments.
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.
A comprehensive overview of Long Coupon, detailing its definitions, applicability, historical context, and related financial terminology.
Exploring M-CATS, a type of zero-coupon bond issued by municipalities.
A comprehensive overview of majority shareholders, their roles, responsibilities, and impact on corporate governance.
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.
An in-depth exploration into Marketability, defining its role in product and investment transactions, and differentiating it from liquidity.
A comprehensive guide to Master Limited Partnership (MLP), including its definition, structure, legal considerations, examples, and historical context.
Understanding Medium-Term Bonds, their characteristics, comparisons with other bond maturities, and their role in investment strategies.
A comprehensive overview of mid-cap stocks, their market capitalization range, characteristics, and investment considerations.
Detailing the concept of Minority Interest, where shareholders own less than half of the corporation, and its significant implications in the corporate world.
A mortgage-backed certificate is a financial instrument backed by mortgages, where investors receive payments from the interest and principal on the underlying mortgages.
A detailed exploration of mortgage-backed securities, their types, characteristics, and relevance in the financial markets.
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.
An in-depth exploration of negative leverage, its implications, examples, and how it contrasts with positive leverage.
An in-depth look at Negotiable Certificates of Deposit (NCDs) above $100,000, focusing on their structure, market, and uses.
Net Asset Value (NAV) represents the value of a mutual fund or investment fund's assets minus its liabilities, typically expressed in per-share terms.
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 exploration of stocks reaching new high or low prices within the last 52 weeks, including their significance, influencing factors, and implications for investors.
An in-depth look at the New York Stock Exchange (NYSE), its structure, history, operations, and significance in global finance.
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.
Comprehensive explanation of no-par stock, its significance, historical context, and related topics.
Explore the concept of nominal yield, its calculation, types, historical context, real-world examples, comparisons with real interest rate, and FAQs.
