Investment

 Keywords

• Clearinghouse - It is a designated intermediary between a buyer and seller in a financial market. The clearinghouse validates and finalizes the transaction, ensuring that both the buyer and the seller honor their contractual obligations.
• Wash Sale - It is a transaction in which an investor seeks to maximize tax benefits by selling losing security at the end of a calendar year so they can claim a capital loss on taxes that year.
• Joint-Stock Company - It is a business owned by its investors, with each investor owning a share based on the amount of stock purchased. They are created in order to finance endeavors that are too expensive for an individual or even government to fund.
• Smart Money - It is the capital that is being controlled by institutional investors, market mavens, central banks, funds, and other financial professionals.
• Investor Relations (IR) - It is a division of a business, usually a public company, whose job it is to provide investors with an accurate account of company affairs.
• Prospectus - It is a formal document that is required by and filed that provides details about an investment offering to the public.
• Institutional Investor - It is a person or organization that trades securities in large enough quantities that it qualifies for preferential treatment and lower fees.
• Speculating - It is the act of putting money into financial endeavors with a high probability of failure. It seeks abnormally high returns from bets that can go one way or the other.
• Forfeited Share - It is a share in a publicly-traded company that the owner loses by neglecting to live up to any number of purchase requirements.
• Holding Period - It is the amount of time the investment is held by an investor or the period between the purchase and sale of a security.
• Public Company - It is a corporation whose ownership is distributed amongst general public shareholders via the free trade of shares of stock on exchanges.
• Nominal Rate of Return - It is the amount of money generated by an investment before factoring in expenses such as taxes, investment fees, and inflation.
• Bottom-Up Investing - It is an investment approach that focuses on the analysis of individual stocks and de-emphasizes the significance of macroeconomic cycles and market cycles.
• Wrap Account - It is an investment portfolio that is professionally managed by a brokerage firm for a flat fee based on total assets under management (AUM).
• Brokerage - A brokerage company's main duty is to act as a middleman that connects buyers and sellers to facilitate a transaction. They receive compensation by means of commissions or fees that are charged once the transaction has successfully completed.