The term 'pool' has various definitions across different industries including corporate finance, industry, insurance, investments, and real estate. It generally refers to a combination of resources or funds for a specific purpose.
Portfolio income in taxation includes interest, dividends, royalties, and gains and losses from investments. It distinguishes between passive, active, and portfolio income, indicating that passive activity losses may not be offset against active or portfolio income.
The term 'position' can refer to various contexts, from strategic market placement to financial conditions, and investments. In investments, it is a key concept involving either long or short stakes in securities or markets.
The pretax rate of return is the percentage yield or capital gain generated by a particular investment or security before considering the impact of taxes.
A profit-sharing plan is an agreement between a corporation and its employees which allows employees to share in the company's profits. Contributions are made annually by the company to an account for each employee, accumulating tax deferred until retirement or departure. Employees may be able to borrow against these funds for major expenditures.
A Public Limited Company, abbreviated as PLC or (c.c.c.) in Welsh, is a type of company whose shares are traded freely on a stock exchange and can be bought by the general public. These companies adhere to more complex regulations and scrutiny to ensure transparency and protect investors.
Pyramiding refers to various financial and business strategies, both legitimate and fraudulent, that involve the use of financial leverage, excess distribution chains, or dealership networks designed for growth rather than product utility.
A registered bond is a type of bond that is recorded in the name of the holder on the books of the issuer or the issuer's registrar. It can be transferred to another owner only when endorsed by the registered owner. This is in contrast with a coupon bond.
The Right of First Refusal (ROFR) is a contractual right that gives its holder the option to enter into a business transaction with the owner of an asset before the owner is entitled to enter into that transaction with a third party.
A sales load, also referred to as a sales charge, is a commission or fee paid to a broker or agent when an investor buys or sells shares in a mutual fund.
Financial instruments that represent ownership or debt and provide the holder with a right to receive financial returns or an interest in the profits or assets of an enterprise.
Security refers to various forms of assurances provided to lenders or measures taken in financial and e-commerce contexts to ensure the integrity, privacy, and authenticity of transactions or assets.
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. SMAs, also known as separate accounts, individually managed accounts, or managed accounts, are usually marketed by broker-dealers who select money managers, or subadvisors, for clients from a curated list.
A serial bond is a bond issue, usually of a municipality, with various maturity dates scheduled at regular intervals until the entire issue is retired. Each bond certificate in the series has an indicated redemption date.
A bond issued in a primary market at a price exceeding 90% of its face value, meaning the discount does not surpass 10%. Such bonds are typically seen as less risky compared to more deeply discounted bonds.
A Share Broker, also known as a Stock Broker, is a professional who buys and sells stocks, bonds, and other securities on behalf of clients, typically in exchange for a fee or commission. Share brokers have extensive knowledge of the financial markets and help clients make informed investment decisions.
Shares of Beneficial Interest are proof of an individual's rights and interest in the assets held in a trust or other legal entity.
Short covering is the process by which a short seller purchases securities in the open market to repay the borrowed securities originally sold short. It is an essential action taken to mitigate potential losses or lock in profits.
A position held by a dealer in securities, commodities, currencies, etc., where sales exceed holdings because the dealer expects prices to fall, enabling the shorts to be covered at a profit. Contrasts with a long position.
Simple interest is a quick and easy method for calculating the interest charge on a loan or the interest earned on an investment, based on the principal amount, interest rate, and the time period involved.
An individual investor who buys small amounts of stock or bonds, often in odd-lot quantities; also called a retail investor.
A common or preferred stockholder whose name is registered on the books of a corporation as owning shares as of a particular date. Dividends and other distributions are made only to shareholders of record.
The strike price, also known as the exercise price, is the predetermined price at which the owner of an option can buy or sell the underlying asset before or at the expiration date.
Syndication is a method of selling property whereby a sponsor, or syndicator, sells interests to investors. It can take various forms including partnerships, limited partnerships, tenancy in common, corporations, limited liability companies, or S Corporations.
A syndicator is a person or organization responsible for selling investments in shares or units within a syndicate.
A type of bond for which the entire principal amount matures on a single date rather than in installments over multiple dates.
A 'tip' encompasses two primary interpretations: a gratuity given for exceptional service and a piece of valuable information in investment contexts.
Transaction costs are the expenses incurred during the process of buying or selling investments. They are critical to consider as they can significantly impact the net gains from transactions.
Treasury Inflation-Protected Securities (TIPS) are U.S. Treasury securities designed to help investors protect against inflation. The principal of TIPS increases with inflation and decreases with deflation, as measured by the Consumer Price Index (CPI).
The unexpensed portion of the amount by which the price paid for a security exceeded its par value with bonds or preferred stock, or its market value with common stock.
An undervalued security is one that is selling below its liquidation value or the market value that analysts believe it deserves. Factors for undervaluation may include an unfavored industry, lack of company recognition, or an erratic earnings history.
In the contexts of insurance and investments, underwriting involves assuming risk in exchange for a premium or facilitating the issuance and resale of securities, respectively.
Unearned income refers to income that is not derived from active work, such as wages, salaries, or professional fees, but from investments, savings, or other passive sources like dividends, interest, and rental income.
Unrealized profit/loss refers to the profit or loss that exists on paper due to holding assets, rather than actually selling or otherwise disposing them to capture the gain or loss in cash.
A comprehensive overview of Variable-Rate Notes (VRNs), highlighting their characteristics, benefits, and implications for investors.
Worthless securities are financial instruments that have no value. Ownership of worthless securities typically results in a capital loss for the investor.
Yield equivalence is the rate of interest at which a tax-exempt bond and a taxable security of similar quality provide the same after-tax return. This concept is essential for investors comparing tax-exempt and taxable investment options.
Yield to Maturity (YTM), often referred to as Gross Redemption Yield, is a crucial financial metric for investors, reflecting the total return expected on a bond if held until it matures.
