See Also: Collateralized Debt Obligations Secured Claim Subordinated Debt Mezzanine Debt Financing (Mezzanine Loans) Asset Based Financing Passthrough Securities Definition A passthrough security is a debt obligation that represents the cash flows towards a certain asset or liability. There is often an intermediary between the cash flows and the investor who provides a lump sum
Limited Partnership Definition A limited partnership is a private or public business owned by two or more partners, including both general partners and limited partners. In this type of partnership, the partners share the profits and losses of the business as stipulated in a predetermined agreement. The general partners share the management and control of
See Also: How to Prepare a Breakeven Analysis Contribution Margin Cost Volume Profit Model ProForma Financial Statements Net Profit Margin Analysis Prepare an Investor Package The Investor Package serves as a medium to visually communicate to the Owner/Management financial information which they might otherwise have difficulty digesting in financial statements. This is not unusual since
See Also: Long Term Debt Maturity Date Non-Investment Grade Bonds Owner’s Equity Par Value of a Bond Preferred Stocks Core Satellite Portfolio Fixed Income Securities Definition What are fixed income investments? Fixed income securities are financial instruments that represent debt obligations. A company, government, or other organization can raise funds by issuing debt instruments to
See Also: Finance Beta Definition Finance Derivatives Hedge Funds Hedging Risk Financial Ratios Financial Leverage Definition In finance, leverage refers to using borrowed capital or financial derivatives to magnify the results of an investment. The value of a leveraged investment is greater than the value of the original capital contributed by the investor. When leveraging an investment,
See Also: Financial Instruments Investment Risk Common Stock Definition Prepare an Investor Package Fixed Income Securities Treasury Stock Venture Capitalists Definition Core Satellite Portfolio Definition Core Satellite asset allocation is an investment strategy that consists of two parts the “core” and the “satellite.” The first part is known as the core portfolio. It invests in
See Also: Future Value Discount Rate Exchange Traded Funds Backwardation Interest Rate Swaps Arbitrage Contango Definition Contango is a term used to describe the forward yield curve when it is upward sloping and the price of a future commodity is above that of the spot rate. This is the opposite of backwardation. Contango Meaning Contango
See Also: Common Stock Company Valuation Convertible Debt Instrument Covenant Definition of a Bond Contract Long Term Debt Non-Investment Grade Bonds Owner’s Equity Par Value of a Bond Preferred Stocks Coupon Rate Bond The coupon rate bond is the annual interest rate the issuer pays to the bondholder. The rate is expressed as a percentage of the bond’s face
See Also: Intrinsic Value – Stock Options Company Valuation Basis Definition Balance Sheet Paid in Capital (APIC) Capital Gains American Depositary Receipts (ADRs) Common Stock Definition The common stock definition is shares of common stock represent ownership of a public or private corporation. Shares of common stock usually give the shareholder voting rights. Therefore, the
See Also: Loan Term Commercial Paper Term Deposit Treasury Bills (t bills) Federal Funds Rate Definition Certificate of Deposit (CD) Definition A Certificate of Deposit or CD is a special type of time deposit used by many financial institutions, usually a commercial bank. Certificates of deposit generally offer fixed rates of return for periods of
See Also: Coupon Rate Bond Non-Investment Grade Bonds (Unsecured Debentures) Par Value of a Bond What is a Bond? Yield to Maturity of a Bond Baby Bonds Definition The baby bonds definition is completely the same as a normal bond except for the fact that the face values are less than $1,000. They typically come
See Also: Cost of Capital Cost of Capital Funding Arbitrage Pricing Theory APV Valuation Capital Budgeting Methods Discount Rates NPV Required Rate of Return Capital Asset Pricing Model (CAPM) The Capital Asset Pricing Model (CAPM) is an equilibrium model that measures the relationship between risk and expected return of an asset based on the asset’s
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