An in-depth look at noncallable preferred stock or bonds, their features, benefits, and key considerations.
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 obligation bond is a type of mortgage bond in which the face value is greater than the value of the underlying property, compensating the lender for costs exceeding the mortgage value.
An in-depth guide to the offering date, including its definition, importance, and implications in the world of finance.
A comprehensive definition and detailed explanation of 'Offset' as used in Accounting, Banking, Printing, and Securities.
Comprehensive overview of online trading which involves buying and selling stocks or other securities through the Internet without a traditional broker.
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).
A comprehensive overview of the term 'Order' in various contexts including commercial law, investments, legal frameworks, and trade.
An ordinary annuity involves a series of equal or nearly equal payments made at the end of each equally spaced period.
Comprehensive overview of Ordinary Interest, including definition, differences with exact interest, calculations, and historical context.
Original Equity refers to the initial cash investment made by the underlying owner, distinctly separate from sweat equity and capital calls.
Understanding the concept of Original Maturity in the context of bonds, including its importance, application, and distinction from current maturity.
An in-depth explanation of Out of the Money (OTM) options, including definitions, examples, and important considerations in options trading.
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.
A detailed look into Par Bonds, their characteristics, implications, and distinctions from other types of bonds.
An in-depth exploration of Participating Preferred Stock, its features, benefits, and context within the finance world.
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 look at pass-through securities, focusing on how they function, their types, special considerations, examples, history, and applicability.
A comprehensive guide to Passive Activity Loss, its impact on investors, exceptions, and its implications in financial planning.
An in-depth guide to understanding what a Passive Investor is, including types, examples, and related terms such as Limited Partner and Stockholder.
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 comprehensive guide on Penny Stocks, their characteristics, benefits, risks, and related financial concepts.
A perpetuity is a financial instrument that pays a never-ending series of periodic payments. It is commonly used in the contexts of finance, economics, and legal frameworks such as the rule against perpetuities.
An in-depth explanation of Portfolio Income in taxation, including interest, dividends, royalties, and gains and losses from investments, and how it compares to passive and active income.
A comprehensive article about Preference Shares, covering their features, types, applicability, and more in the context of finance.
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 Primary Earnings Per (Common) Share, including its calculation, significance, and associated considerations.
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 proceeds, focusing on funds received by borrowers and sellers after deductions.
The Prudent-Man Rule is a standard adopted by some U.S. states to guide fiduciaries responsible for investing the money of others. It mandates acting with discretion, intelligence, and caution, aiming to seek reasonable income and preserve capital.
Public Ownership entails government ownership and operation of productive facilities and the portion of a corporation's stock traded in the open market. This entry covers its implications, examples, historical context, and impact.
Understanding what a publicly traded corporation is, its characteristics, benefits, drawbacks, historical context, and related terms.
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 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 interest rate is the current interest rate adjusted for inflation, providing insight into the actual cost of borrowing or the real return on investment. Learn how to calculate it and understand its economic impact.
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.
Comprehensive Coverage of Restricted Securities, Including Definition, Types, Historical Context, Applicability, and Related Terms
Detailed overview of Retirement Funds, regulated by the Employee Retirement Income Security Act (ERISA) of 1974, and their impact on the stock market.
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.
In-depth Explanation of Right of First Refusal, its Advantages, Applications, and Historical Context.
Understanding Risk Premium in Portfolio Theory: A Key Concept in CAPM Reflecting Market-Related Risk
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.
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 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.
An in-depth understanding of Schedule K-1, its uses, types, and key components.
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.
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.
A Self-Directed IRA (Individual Retirement Account) allows investors to actively manage and diversify their retirement holdings beyond traditional stocks, bonds, and mutual funds.
An extensive guide to the financial strategy of selling short against the box, including definitions, types, examples, historical context, and related terms.
A SEP-IRA (Simplified Employee Pension Plan) is a retirement savings plan that offers tax advantages for business owners and self-employed individuals.
Exploring the role, responsibilities, types, and importance of Share Brokers, also known as Account Executives in stock trading.
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.
An In-depth Look at Short Selling, its Mechanisms, and Implications
Short-term capital gain (loss) for tax purposes, profit (loss) realized from the sale of securities or other capital assets not held long enough for a long-term capital gain (loss).
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.
An overview of small-cap stocks, including their characteristics, market capitalization, and volatility compared to larger companies.
An exploration of Social Overhead Capital, investments in areas such as education and health care, whose productivity or effectiveness cannot be directly measured.
Soft dollars refer to indirect payments for brokerage services, allowing investors to use commission dollars for research and related services rather than direct payments.
Soft Money refers to tax-deductible contributions in investments and development, as well as non-construction costs such as interest during construction, architect's fees, and legal fees.
A Soft Spot is a small weakness or decline in specific stocks or stock groups within a generally strong and advancing market trend.
Detailed explanation of the Specific Identification inventory method and its implications for investors.
Detailed explanation of speculation in financial markets, including types, examples, comparisons with gambling and investment, and historical context.
Refer to SPDR for more information about Standard & Poor's Depositary Receipts (SPDRs), a type of exchange-traded fund.
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.
Understand the intricacies of stock options, a key financial instrument offering opportunities for investment, speculation, and employee compensation.
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 detailed exploration of stock symbols—abbreviations used to identify companies on the securities exchanges where they trade, also called trading symbols.
A Stock-Transfer Agent specializes in managing and executing the transfer of stock ownership and maintaining comprehensive records of shareholders.
An in-depth explanation of stockholders, their roles, types, historical context, and applicability in the corporate world.
Straight Debt refers to a debt instrument with a fixed repayment schedule, fixed interest rate, and no convertibility features.
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.
A comprehensive analysis of the 'Subject to Mortgage' condition of sale in real estate transactions, where the purchaser acquires a property with a pre-existing mortgage without becoming personally liable.
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.
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.
An in-depth look at the definition of tax shelters prior to October 23, 2004, according to the IRS, and the modern regulatory framework post-October 22, 2004.
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 Tenancy In Common (TIC) ownership, its mechanisms, benefits, and considerations, especially in relation to Section 1031 tax-free exchanges.
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.
Ticker tape historically refers to the paper strip on which stock price quotes were transmitted by telegraph machines. Nowadays, the term is often used to describe the continuous stream of price quotes seen on financial news channels.
The concept that money available now is worth more than the same amount in the future due to its potential earning capacity. Integral to financial computations involving imputed interest and original issue discount.
An in-depth exploration of Times Fixed Charge, its relevance, calculation, and implications in finance.
A detailed examination of the term 'Trader' with insights into its general and investment-specific meanings, historical context, types, and related terms.
