CrestCo Ltd. is the central securities depository for the U.K. markets and Irish stocks. More specifically, Crest operates an electronic settlement system, which was established in 1996 and is used to settle a vast number of international securities. The company can also physically hold stock certificates on the behalf of customers. Taobiz explains Crest By holding securities as well as maintaining an electronic clearing system, Crest can provide for same-day clearing of securities transactions if needed. Its overall ability to provide a fast transfer of title for the securities it handles is its most important advantage to investors.
A term used in investing to signify when trading curbs are no longer active. Curbs are temporary limitations or restrictions on the trade of a particular security. "Curbs out" means that these restrictions are lifted, so trading can occur as usual. Taobiz explains Curbs Out Trading curbs are usually used to reduce the sudden movement of a security's price, so as to reduce the volatility of the market. Some people believe that curbs actually increase uncertainty and limit the ability of the market to reach an equilibrium price. Taking curbs out, they think, would allow the price to fall or rise to a market-determined level.
A term used in investing to signify when trading curbs are active. Curbs are temporary limitations or restrictions on the trade of a particular security. Curbs in means that these restrictions are in place, so trading has been suspended. Taobiz explains Curbs In Trading curbs are usually used to reduce the sudden movement of a security's price. This is done to reduce the volatility of the market. Some people believe that curbs actually increase uncertainty and limit the ability of the market to reach an equilibrium price. Taking curbs out, they think, would allow the price to fall or rise to a market-determined level.
A type of preferred stock with a provision that stipulates that if any dividends have been omitted in the past, they must be paid out to preferred shareholders first, before common shareholders can receive dividends. Taobiz explains Cumulative Preferred Stock A preferred stock will typically have a fixed dividend yield based on the par value of the stock. This dividend is paid out at set intervals, usually quarterly, to preferred holders. If a company runs into some financial problems and is unable to meet all of its obligations, it will likely suspend its dividend payments and focus on paying the business-specific expenses. If the company gets through the trouble and starts paying out dividends again, it will first have to pay back all of the dividends that are owed to preferred share holders.
A limitation placed upon corporations ensuring the payment of preferred dividends before distributions are made to common shareholders. Taobiz explains Cumulative Dividend If a company fails to make a dividend distribution to preferred shareholders with a cumulative dividend, they will be required to catch up the payment before any other distributions can be made to common shareholders.
When a buyer of a security is entitled to receive a dividend that has been declared, but not paid. Watch: Dividend Taobiz explains Cum Dividend Cum dividend means "with dividend." A stock trades cum-dividend up until the ex-dividend date. On or after this point, the stock trades without its dividend rights.
A portion of the balance sheet that represents the total amount of long-term debt that must be paid within the next year. The balance sheet has a liability section, which is broken down into long-term and current debt. When a debt payment is set to be made in longer than a year's time, it is recorded in the long-term debt section, and when that payment becomes due within a year, it moves to the "current portion of long-term debt" section. Taobiz explains Current Portion Of Long-Term Debt (CPLTD) The purpose and importance of this section of the balance sheet is that it gives investors an idea of how much money will be spent this year to resolve the current portion of the long-term debt. This can be compared to the current cash and cash equivalents to measure whether the company is actually able to make the payment. A company with a large current portion and a small cash position has a higher risk of default and should be a warning sign to investors.
The resale valuation attached to a security held long in an investor's margin account. The current market value is usually taken as the closing price for listed securities or the bid price offered for over-the-counter (OTC) securities. Taobiz explains Current Market Value - CMV In a margin account, an investor essentially engages in owning securities purchased for a total price greater than the amount of cash he/she has in his/her account; the investor borrows the excess cash needed from his/her brokerage to fund the remainder of the purchase. Due to this leveraged purchase situation, the brokerage account values the investor's assets periodically, and if the total account value falls below the required margin amount, the brokerage will require the investor to top up the account with cash or to liquidate some or all of his or her securities into cash. The current market value (CMV) is the standardized price that is taken periodically to track the change in value of the investor's assets.