A movable rate contract is a credit that puts together its loan cost with respect to a record. The record is regularly the Libor rate, the fed supports rate, or the one-year Treasury bill. An ARM is otherwise called a customizable rate advance, variable rate home loan, or variable rate advance.
The idea behind ARMs is very simple, but there are many covenants that can be included in the contracts to complicate things. Two common types of ARMs are the interest-only ARM and the hybrid ARM. Interest-only ARMs offer a set period during which the borrower only pays the interest on the loan. This reduces the borrower's payment, but it leaves the principal outstanding. Hybrid ARMs offer a fixed interest rate for a period of time and then revert to a variable rate for the remainder of the loan's life. A 3/1 ARM, for example, is a mortgage that carries a fixed rate for the first three years and then adjusts every year thereafter.
A resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide a future benefit.
Examples of assets that are likely to be listed on a company's balance sheet include: cash, temporary investments, accounts receivable, inventory, prepaid expenses, long-term investments, land, buildings, machines, equipment, furniture, fixtures, vehicles, goodwill, and more.
Is any person who gains an advantage and/or profits from something. In the financial world, a beneficiary typically refers to someone eligible to receive distributions from a trust, will or life insurance policy.
For example, the beneficiary of a life insurance policy is the person who receives the payment of the amount of insurance after the death of the insured.
A term used when you take ownership of another business in order to expand your business or diversify your business holdings. This word if frequently used in conjunction with the word merger, as in mergers and acquisitions.
When a target company is acquired by another company, the target company ceases to exist in a legal sense and becomes part of the purchasing company. Acquisitions are commonly made by using cash or debt to purchase outstanding stock, but companies can also use their own stock by exchanging it for the target firm's stock. Acquisitions can be either hostile or friendly.
An organization that takes part and assists in purchasing and sales of companies .
Business brokers have relationships with people seeking to buy businesses as well as those seeking to sell. They also know how to market a business for sale. Business brokers are paid through commissions based on a percentage, typically 10% to 15%, of the sale price they secure for the company.
Something pledged as security for reimbursement of credit, to be forfeited in case of a default.
Debt counsellors are concerned by the trend towards using houses as collateral against debt.
Money owed to another party (known as a creditor), whether that party is a bank (in which case the debt is a loan), an institutional investor (bonds or notes), or a supplier (supplier-extended credit terms). Accounts payable (A/P) (i.e., outstanding bills, or money owed for goods or services rendered) are not considered debt in accounting parlance.
Let's assume Company XYZ has invented a new product that will revolutionize the widget market. The company is certain there will be demand from billions of people around the world, and therefore it needs to build a new factory. If Company XYZ's funds for constructing the factory were limited to its cash on hand, say $200,000, it certainly could not build the kind of factory it needs to capitalize on this tremendous opportunity and would thus be very limited in its output and profits (and would leave the market wide open for competitors to fill the void).
Lawful procedure by which a proprietor's entitlement to a property is ended, typically as a result of the inability to make advance installments as concurred. Foreclosure typically involves a forced sale of the property at public auction, with the money applied to the remaining debt.
In 2008 when the economy took a downturn, my house, along with many other people's homes, went into foreclosure because I could not make the payments.
A promoting approach that is intended to draw guests and potential clients in, as opposed to apparently pushing a brand, item or administration onto prospects in the expectation of producing leads or clients.
While inbound marketing is especially well-suited to any business that operates on the Internet, the truth is that it’s an effective strategy for a wide variety of organizations in multiple fields. Non-profit organizations have had great success with inbound marketing materials like social media campaigns and viral videos. These strategies help NPOs connect their stakeholders with the organization's cause, not only reaching individuals who are already interested in the topic, but also providing easy-to-find information for others. Political campaigns are also major users of inbound marketing. Everyone from city council candidates to those at the top tier of national elections have seen very impressive numbers come from blogs, social media, and interactive online materials. The Washington Post reported that President Barack Obama raised over $500 million in Internet donations during his 2008 campaign, which had a significant inbound marketing component.
An ownership of a business, such as property, by two or more parties. Also, with one type of joint ownership, one owner can sell the property without the permission of the other owners.
For example, suppose two friends, Bob and Jack, rent an apartment together to reduce living expenses. As joint tenants, Bob and Jack are each responsible for paying rent and applicable utilities for the apartment. If Jack leaves without notice and becomes unreachable, any lapse in payments falls solely on Bob.
A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In a joint venture (JV), each of the participants is responsible for profits, losses, and costs associated with it. However, the venture is its own entity, separate from the participants' other business interests.
Examples of joint ventures include: Vodafone & Telefónica agreed to share their mobile network;BMW and Toyota co-operate on research into hydrogen fuel cells, vehicle electrification and ultra- lightweight materials.
An amount paid by a lessee as deposit on a leased property.
For example, Company XYZ is a restaurant firm that wants to open a location in the new ABC outdoor mall. The mall is under construction, but Company XYZ likes the location and the demographics of the surrounding population, so it writes a $5,000 check to the ABC landlord. This "gets the keys" and reserves a spot for Company XYZ.
Main mathematical ratios that illustrate and summarize the current financial condition of a company.
Examples of key ratios might be the price-to-sales ratio (Price-to-Sales Ratio = Market Capitalization/Annual Sales) or the P/E ratio, which is price per share/earnings per share. Other key ratios include return on assets, return on equity, or price to book value.
Is a trusted expert in a particular field, who seeks to pass timely and relevant knowledge on to others in the respective field.
An example of a maven is someone who knows all about wine.
Is talented, truthful to the point of bluntness, visionary with an uncanny ability to exactly see the hole in the argument that is being presented to them, and how to fix it. Mavericks break rules, not out of spite but because the rules don’t work. They are highly goal orientated, charismatic, and will question anything and everything. Mavericks are those individuals who eagerly make business decisions that fly in the face of business-as-usual.
A lot of successful entrepreneurs and business leaders, such as Steve Jobs (Apple) and Richard Branson (Virgin) are often marked as ‘mavericks’.
The process within which without any legal right to do so, one’s occupying real property or having physically possessing a material object.
If A has the right of property, and B by unlawful means has gained possession this is an injury to adjective. This is a bare or naked possession.
Is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. NPV is used in capital budgeting and investment planning to analyze the profitability of a projected investment or project.
For example, assume that an investor could choose a $100 payment today or in a year. A rational investor would not be willing to postpone payment. However, what if an investor could choose to receive $100 today or $105 in a year? If the payer was reliable, that extra 5% may be worth the wait, but only if there wasn’t anything else the investors could do with the $100 that would earn more than 5%.
A systematic and an organized group meeting held among the members to facilitate decision making by properly identifying the problems and generating the solutions thereof.
Group of accountants working on improving a management report has a strongly structured work style, and consequently use NGT rather than Brainstorming to come up with the right format.
A type of mortgage that involves blending a traditional mortgage with one or more deposit accounts held by the same financial institution. The savings balance maintained in an account may offset the mortgage balance.
Instead of a standard savings account, you could place your savings in an offset account linked to your mortgage. This means you won't pay interest on the mortgage debt of the equivalent amount of the savings.
An preferred competitive public procurement method used for acquiring goods, services and infrastructure works.
It is executed in accordance with established procedures set out in the procurement guidelines and detailed in the standard bidding documents. For example, in construction, the main tender process is generally the selection, by the client, of a contractor to construct the works.
A measurement of the cost to operate a piece of property compared to the income brought in by the property.
The operating expense ratio range is most ideal between levels of 60%–80%, where the lower it is, the better.
A contract of carriage that serves as a title of the cargo and confirms the carrier’s receipt of the cargo.
Your cargo must be released with the original bills of lading before Flexport can deliver your cargo to its final destination. Cargo issued with an original bill of lading can be released in one of two ways: with an endorsed original bill of lading, or with a telex release.
An outside director is a member of a company's board of directors who is not an employee or stakeholder in the company.
Outside directors have an important responsibility to uphold their positions with integrity and protect and help grow shareholder wealth. In the case of Enron many accused the company’s outside directors of being negligent in their oversight of Enron. In 2003, plaintiffs and Congress accused Enron's outside directors of allowing the company’s former CEO Andrew S. Fastow to enter into deals that created a significant conflict of interest with shareholders as he concocted a plan to make the company appear to be on solid financial footing, despite the fact that many of its subsidiaries were losing money.
A business practice in which an organization procures another organization or a person to perform assignments, handle operations or provide services that are either usually executed or had previously been done by the company's own employees.
Functions frequently outsourced by companies include IT acquisition and administration/support, manufacturing, packing/shipping/order fulfillment, and various human resources functions such as payroll processing and benefits administration.
An amount of capital "paid in" by investors during common or preferred stock issuances, including the par value of the shares themselves.
Paid-in capital represents the funds raised by the business from selling its equity and not from ongoing operations. Paid-in capital also refers to a company's balance sheet entry listed under stockholders' equity, often shown alongside the balance sheet entry for additional paid-in capital.
A company that owns enough voting stock in another firm to control management and operation by influencing or electing its board of directors.
In the United Kingdom, it is generally held that an organisation holding a 'controlling stake' in a company (a holding of over 51% of the stock) is in effect the de facto parent company of the firm, having overriding material influence over the held company's operations, even if no formal full takeover has been enacted.
A business owned by two or more people who agree on the method of distribution of profits and/or losses and on the extent to which each will be liable for the debts of one another. A partnership permits pass through of income and losses directly to the owners. In this way, they are taxed at each partner's personal tax rate.
One of the largest advantages of doing a co-branding campaign is having the opportunity to showcase a service or product to a new audience. That's what Sherwin-Williams and Pottery Barn did when they got together in 2013. They created an exclusive line of paints together, and then put a new section up on Pottery Barn's website to allow customers to easily pick which paint colors they wanted so it would go with their furniture choices. This was mutually beneficial for both brands, and they wrote articles to show how customers could decorate and paint on their own.
An accounting method used in mergers and acquisitions where there is no pooling of interests and the purchasing company treats the target firm as an investment.
There are many ways an acquirer can pursue the purchase of a target. Philosophically, the purchase method accounted for an acquisition as the sum of the assets and liabilities being acquired. The acquisition method differs in that it views the purchase as the whole firm, not just the sum of its parts.
One of the most popular types of coverage offered by US Weather Insurance. This type of coverage works well in several different scenarios including protection for outdoor special events, film productions and sales promotions.
Rain insurance protects your event against adverse weather conditions which may reduce revenue or increase expenses. It can also be used to increase sales for retail operations as well as stabilize a budget for certain businesses where their revenue is tied solely to weather.
A proccess of recognizing the correctness of a previously made statement, contract or reservation.
Charles Saatchi's action is actually a reconfirmation that the market is strong.
Is an exemption from registration requirements—instituted by the Securities Act—that applies to public offerings of securities that do not exceed $50 million in any one-year period. Companies utilizing the Regulation A exemption must still file offering statements with the Securities and Exchange Commission (SEC).
Equity crowdfunding platforms StartEngine and SeedInvest have facilitated Regulation A+ campaigns. The first successful Regulation A+ campaign was completed by automotive startup Elio Motors, raising nearly $17 million from 6,600 investors. The campaign was designed, produced and marketed by CrowdfundX, a financial marketing firm based in Los Angeles. Elio Motors closed out their Regulation A+ offering in February, 2016, and subsequently listed to the OTCQX, making it the first crowdfinanced IPO in the United States. In July, 2017, Myomo, a medical device maker out of Boston, MA, became the first crowdfinanced IPO to list shares to the NYSE. CrowdfundX also marketed this historic Reg A+ IPO.
Enables eligible companies to offer and sell securities through crowdfunding.
For example, MicroVentures specializes in Regulation Crowdfunding, which is a term that refers to a form of equity crowdfunding that enables everyone to contribute, not just accredited investors.
Is a Securities and Exchange Commission (SEC) regulation governing private placement exemptions. Reg D offerings are advantageous to private companies or entrepreneurs that meet the requirements because funding can be faster to obtain and less costly than with a public offering.
Large markets such as New York, San Francisco, Boston, and Chicago have the highest concentration of Form D Filings. However, the distributed access to capital and investment opportunities via online private placements has helped bring about some prominent 'middleweights' in a number of diverse markets, including Houston, TX, Vancouver, WA, and Raleigh, NC. For example, HelloMD raissed $2 million from accedited investors thorugh Reg D and $1 million through regulation CF.
A type of legally documented transaction under which tangible property, such as furniture, consumer electronics, real property, is leased in exchange for a weekly or monthly payment, with the option to purchase at some point during the agreement. The usage of rent-to-own transactions began in the United Kingdom and Europe, and first appeared in the United States during the 1950s and 1960.
As an example, if you pay $1,200 in rent each month for three years, and 25% of that is credited toward the purchase, you’ll earn a $10,800 rent credit ($1,200 x 0.25 = $300; $300 x 36 months = $10,800). Typically, the rent is slightly higher than the going rate for the area to make up for the rent credit you receive.
A time element property insurance that pays for loss of rental income when a building that is rented out to others has been damaged by a covered cause of loss.
Coverage is provided for the fair rental value of the portion of the premises occupied by the insured. Rental value insurance can be provided by a business income coverage form or a specialized rents or rental value coverage form.
A special type of loan that provides regular monthly payments to homeowners.
Preferred typically by older or retired individuals or couples (who have paid out the original mortgage and continue to live in the property) upon whose death the property is sold to pay off the loan. RAM is one of the means of converting a 'frozen' asset (home) into a 'liquid' asset (cash).
A legal entity created to hold ownership of an individual's assets.
The trust is categorized as 'living' when it is created during the lifetime of the grantor. It is classified as 'revocable' when the grantor reserves the right to modify or even rescind the trust during their lifetime.
An institution which accepts savings at interest and lends money to savers for house or other purchases.
The terms "S&L" or "thrift" are mainly used in the United States; similar institutions in the United Kingdom, Ireland and some Commonwealth countries include building societies and trustee savings banks. An good example of savings and loan association is Mountaintop Savings Bank which offers regular checking accounts and a variety of savings products like CDs and retirement accounts in addition to the residential mortgages that all S&Ls have to offer members.
A mortgage taken out on a property that is already mortgaged.
Second mortgages are junior (subordinate) to the first mortgage and, in case of a foreclosure sale, are paid out only after the full satisfaction of the first mortgage. Both mortgages run concurrently and, typically, the second mortgage has shorter maturity period than the first one.
A trust which arises when property is left to a person (the legatee) under a will on the understanding that they will hold the property as trustee for the benefit of beneficiaries who are not named in the will.
Secret trusts are something of a historical anachronism. They arose because in most common law jurisdictions, wills are public documents after they have been admitted to probate, and where the testator wishes to leave a legacy to (for example) a mistress or an illegitimate child without causing pain or embarrassment to his family, he could devise the property to a trusted person to avoid the name of the mistress or illegitimate child appearing in the will.
Discretion given to a trustee to distribute income from a trust fund disproportionately between beneficiaries.
Generally, without contrary instruction, a trustee must keep an even hand between beneficiaries of a trust, such as an executor and child beneficiaries. For example, the trustee could distribute a specified sum to each child upon reaching a certain age. Or, if there are separate shares for each child, the grantor could specify that the child would receive one third at age 21, one third at age 25, and the final distribution at age 30. Or, the trust could be crafted to allow the trustee to distribute principal and income in other than equal shares. This could allow the trustee to determine the children’s needs some years after the grantor’s death.
A bill of lading that is produced to a bank for payment on documents but which has been produced after the expiry date of the credit.
B/L presented to its consignee, or at a bank, after the last date specified in the relevant letter of credit and which, therefore, is not acceptable as a valid document. According to the uniform commercial code (UCC), a B/L may be rejected if presented more than 21 days after the date of arrival of the shipment.
Short-term (usually for five years or less) standing mortgage in which (unlike in a term loan) the loan is not amortized over a fixed period but only interest is paid over the term of the loan.
Term loans prove useful for specific situations, such as in times of rapidly-rising home prices and high inflation, when they allow you to lock in the initial price of a home or investment, often making the lowest possible mortgage payment.
A form of financing where a third party purchases installment sale contracts from a dealer and the borrower will make his payments to the lender.
Time-sale financing deals are usually sold at a discount to face value. In most cases, this is done in tandem with dealer floor planning. Banks are the most common borrowers in these scenarios, but other borrowers use this form of financing as well.
is a fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary.
An example of trust is the belief that someone is being truthful.
Is a trust in which the trustees have full discretion over the assets, and the trust beneficiaries theoretically have no knowledge of the holdings of the trust. The trustor initiates the trust and maintains the ability to terminate the trust, but otherwise exercises no control over the actions taken within the trust and receives no reports from the trustees while the blind trust is in force.
For example, savvy lottery winners in the United States have used blind trusts to prevent investment hucksters and money-grubbing relatives from trying to snag a piece of their sudden wealth.
Is a type of irrevocable trust designed to reduce a beneficiary's potential tax liability, upon inheritance.
For example, if you have $200,000 in stock that has appreciated from $10 a share to $100 a share, you can transfer it into a charitable trust and sell it without incurring capital gains tax. Then you can reinvest the money into other income-producing opportunities.
Is a tax-exempt irrevocable trust designed to reduce the taxable income of individuals by first dispersing income to the beneficiaries of the trust for a specified period of time and then donating the remainder of the trust to the designated charity.
For example, let’s say that 20% of a closely held company is contributed to a CRT on June 15, 2017. The company is sold on Aug. 1, 2017, for $5 million. Thus, the CRT receives $1 million.
Is designed to allow affluent couples to reduce or completely avoid estate taxes when passing assets on to heirs, typically the couple's children.
Suppose a husband and wife who have been married for several years each accumulates an estate worth $6 million and the husband sets up a credit shelter trust to be funded upon his death with his share of their combined estate. After the husband dies, his $6 million estate and any income it generated passes estate-tax free onto his wife because it falls below the federal exemption. However, the transfer boosts the wife's net income to $12 million and past the estate-tax exemption. But because these assets were held in the trust outside of her control, her taxable estate is still valued at $6 million and still within the estate-tax exemption. Thus, she can pass on her assets to her children estate-tax free when she dies.
Is “an agreement that describes how assets will be managed and held for the benefit of another person.” Trusts that are legally established are generally referred to as trust funds. A trust fund is a legal entity that holds and manages assets on behalf of another.
For example, Helena creates a trust fund for her grandchildren, Thomas and Tyler. She places $500,000 in cash and other financial assets into the irrevocable trust, and names a close family friend as Trustee. While Helena has specified in the trust that the children are each to receive 30 percent of their portion of the trust fund at age 21, and the remaining balance at age 25, she has made sure the Trustee has the authority to release funds needed for the children’s upbringing, and schooling.
Is a type of legally binding trust agreement in which the contributed assets are passed down to the grantor's grandchildren, not the grantor's children.
Let's say you die and leave many millions of dollars directly to your children. Your estate will be taxed on the excess over the current federal estate tax exemption of $11.4 million in 2019 (up from $5.49 million in 2017). If your children preserve the wealth and leave it to their children (your grandchildren), the IRS gets to collect another round of estate taxes on the same wealth. But what if you instead leave your millions to your grandchildren? Now the IRS would lose its second bite of the apple, because you have cleverly made a transfer of wealth that skips a generation. Indeed, this strategy worked great until Congress dreamed up the GST tax. It ensures that the IRS will get a second bite after all. So even after you've set things up to take advantage of available gift and estate tax loopholes, your planning work is not finished. You need to take a step back and make sure you've successfully avoided (or at least minimized) the GST tax as well.
Is a type of trust where its terms cannot be modified, amended or terminated without the permission of the grantor's named beneficiary or beneficiaries.
George has planned well to provide for his children and grandchildren after his death. Not only has he invested wisely, but he has purchased a $1 million term life insurance policy, though his wealth has placed him in the 45% tax bracket for estate taxes. When George passes away, the life insurance policy will pay out $1 million, and the IRS will take 45%, or $450,000 to satisfy the estate taxes just on the insurance payout. If George had set up an irrevocable life insurance trust, transferring the life insurance policy into it, the insurance proceeds would have gone straight to the named beneficiaries, avoiding estate taxes, and saving his heirs nearly half a million dollars.
Is a written document in which an individual's assets are provided as a trust for the individual's use and benefit during his lifetime. These assets are transferred to his beneficiaries at the time of the individual's death.
For example, a living trust is often an express trust, which is also a revocable trust, and might include an incentive trust, and so forth.
Is a legal arrangement whereby a grantor transfers property to a trustee who holds the property in trust for the grantor’s benefit. A revocable trust can be changed or terminated by the trustor during his lifetime.
For example, Helen and Harold set up a joint revocable trust for the benefit of their three children. The couple transfers ownership of their assets, including their home, two cars, vacation property, and savings and investment accounts into the trust, naming themselves as co-trustees. Fifteen years later, Helen passes away and, because she is no longer able to make decisions regarding the trust, it becomes irrevocable. Harold continues to manage the trust, and to use the assets, including living in the family home. When Harold passes away eight years later, the successor trustee takes over management of the trust, distributing the assets to the couple’s children as directed in the terms of the trust.
Is a legal arrangement and fiduciary relationship that allows a physically or mentally disabled or chronically ill person to receive income without reducing their eligibility for the public assistance disability benefits provided by Social Security, Supplemental Security Income, Medicare or Medicaid.
For example, Mary is medically disabled and receives Social Security disability benefits, Medicare, and food stamps. Under ordinary circumstances, Mary cannot make over a certain amount of money or she will be disqualified from receiving some of her benefits. When Mary’s grandmother dies, she leaves Mary a large sum of money. In order to avoid causing Mary to lose her food stamps benefits, the inheritance is placed in a special needs trust to be managed for Mary’s benefit by a named Trustee. The Trustee can see to it that Mary’s needs are met, while Mary continues to receive the government benefits upon which she relies.
Is any trust that contains clauses specifically aimed at preventing the beneficiaries from squandering their inheritance.
For example, if you left $5,000,000 to your favorite nephew, and the trust account generated $250,000 per annum in income that was paid out to him, he couldn't pledge the trust assets as collateral. If he did spend more than he was able to support--say he bought a $3,000,000 house--the creditors would be out of luck should he find himself unable to perform on the loan. The only cash they can collect from your nephew would be his $250,000 distribution.
is a legal entity established in accordance with the instructions contained in a will. The trustee named is responsible for managing and distributing the trustor's assets to the beneficiaries as directed in the will.
For example, Tom and Barbara have one child together, Stephanie. When Tom and Barbara make their will, they leave everything to each other. They also name Stephanie as an alternate in case they both die at the same time. However, Stephanie is a minor, so they must figure out who will manage her property until she is old enough to be able to do it herself. They decide to create a child’s trust in their will, naming Barbara’s brother as the trustee, and specifying that Stephanie cannot touch the trust until she is 18 years old. Now, if Tom and Barbara die at the same time, their property will go into the child’s trust, and it will be managed for Stephanie’s benefit by Barbara’s brother, until Stephanie turns 18, at which time she can claim it herself.
Consists only of the trust agreement with no funding. Unfunded trusts can become funded upon the trustor’s death or remain unfunded. Since an unfunded trust exposes assets to many of the perils a trust is designed to avoid, ensuring proper funding is important.
For example, parents establish a trust with their daughter as successor trustee, but for some reason title to the house does not get transferred to the trust. The parents pass away and daughter tries to sell the house but, unfortunately, because the house is still in the name of her parents, daughter, as successor trustee of the trust, does not have authority over the house because the trust is not the owner of the house.
Is a person or firm that holds and administers property or assets for the benefit of a third party. A trustee may be appointed for a wide variety of purposes, such as in the case of bankruptcy, for a charity, for a trust fund, or for certain types of retirement plans or pensions.
Let's assume Company XYZ issues $100 million of bonds. Company XYZ will appoint a trustee, usually a bank, to act on behalf of the bondholders. The trustee maintains lists of the bondholders in addition to receiving and distributing interest payments. The trustee also monitors Company XYZ's compliance with the agreements and communicates with the bondholders when the issuer is not in compliance.
A type of insurance policy, purchased on top of other policies, that provides broad coverage for protecting the assets and income of individuals and business from claims originating from risk situations not covered in their primary insurance policies.
It provides an additional layer of security to those who are at risk for being sued for damages to other people's property or injuries caused to others in an accident. It also protects against libel, vandalism, slander and invasion of privacy. An umbrella insurance policy is very helpful when the insurance owner is sued and the dollar limit of the original policy has been exhausted. The added coverage provided by liability insurance is most useful to individuals who own a lot of assets or very expensive assets and are at significant risk for being sued.
Is an accounting methodology for certain bonds. The unamortized bond discount is the difference between the par of a bond — the value of the bond at maturity — and the proceeds from the sale of the bond by the issuing company, less the portion that has already been amortized on the profit and loss statement.
The discount refers to the difference in the cost to purchase a bond (its market price) and its par, or face value. The issuing company can choose to expense the entire amount of the discount or can handle the discount as an asset to be amortized. Any amount that has yet to be expensed is referred to as the unamortized bond discount.
Group of stocks (shares) with a common characteristic such as market capitalization, industry segment, or rate of return. Institutionally, investment managers typically specify a universe of securities that defines some of the investing parameters for a managed fund.
For instance, the broad universe of stocks for an American investor will include all listed companies, large and small and may also include foreign companies listed as ADRs. For some investors, a narrower universe may be used that is constrained to only value stocks, or those with a market cap above some minimum threshold.
Any loan or credit account issued through practices that contravene any provision of the lending laws such the Truth in Lending Act.
Generally, loans issued with excessive interest rates, or that exceed the legal lending limit of a lender, or that don't include the proper disclosure are considered unlawful.
Is an investor that provides capital to firms exhibiting high growth potential in exchange for an equity stake. This could be funding startup ventures or supporting small companies that wish to expand but do not have access to equities markets.
Well-known venture capitalists include Jim Breyer, an early Facebook (FB) investor, Peter Fenton, an investor in Twitter (TWTR), Peter Theil, the co-founder of PayPal (PYPL) and Facebook's first investor, Jeremy Levine, the largest investor in Pinterest, and Chris Sacca, an early investor in Twitter and ride-share company Uber.