A corporate buyout in which the acquirer sells off a piece of the company in order to pay down some of the debt used to finance the initial buyout. The acquirer buys the company by taking on debt and then repays it with the target’s assets once it has control. This is a strategic method used in cases where the target company has undervalued assets that the acquirer seeks to exploit. Taobiz explains Bust-Up Takeover This style of buyout, as with any leveraged buyout, involves heavy analysis on behalf of the acquirer to adequately value the target company’s assets and to make sure that the return on those assets pays for the added cost of debt. If the target company has significantly undervalued assets and the acquirer has little cash (and so needs debt to fund the purchase), this strategy could be implemented to successfully unlock value.
An association that represents the interests of mortgage brokers in the United States and promotes professionalism and ethical standards for its members. In addition to mandating that members adhere to a professional code of ethics, NAMB provides mortgage brokers with professional education opportunities and offers rigorous certification programs to recognize members with the highest levels of professional knowledge and education. |||NAMB hosts one annual convention each spring and sponsors or co-sponsors several additional meetings throughout the year. NAMB offers members a host of benefits aimed at increasing productivity and lowering business costs. Most NAMB members are small business owners.
An exchange-traded fund (ETF) that invests in business software companies, with the objective of replicating the performance of an underlying software index. A business software and services ETF includes companies engaged in a diverse range of business activities that are driven by software - from productivity and enterprise information management, to security and customer relationship management. These ETFs are better known as software ETFs. Taobiz explains Business Software & Services Industry ETF A software ETF will outperform when business demand for technology is robust, which is the case when the economy is in growth mode. Software ETFs generally include U.S. giants such as Microsoft and Oracle, as well as smaller companies like Salesforce.com, Adobe Systems and Intuit. Depending on the index on which the ETF is based, the fund may hold U.S. software companies only, or may include overseas companies like SAP and Check Point Software as well.
A real estate investment trust (REIT) that is controlled by a single company or investor and set up to own the real estate assets of the parent company for tax purposes. This tax mitigation strategy is generally used by large retailers and banks that have many storefronts or branches in numerous locations. There are two types of captive REITs: rental REITs, which are typically used by multi-state retailers, and mortgage REITs, which are used by large banks. Captive REITs are an attempt to capitalize on the favorable tax treatment given to REITs. Rent for individual stores or branches is paid to the captive REIT by the parent company, which deducts them as a business expense, thereby reducing its taxable income. Another potential tax benefit for the parent company is through the dividends paid deduction (DPD) on dividends received from the captive REIT.
A U.S. law that sets the standard of fiduciary duty for those entrusted with the responsibility of managing others' money, such as trustees and estate administrators. It requires that a trustee weigh risk versus reward when making investment decisions, taking into account the income that may be generated by the investment as well as the probable safety of the invested capital. Although often confused with the Prudent Man Rule, the two differ in four key aspects: 1. Trust accounts are judged on their entire portfolio, rather than whether the investment was prudent at the time of purchase.2. Diversification is explicitly required under the Prudent Investor Act3. Suitability is deemed more important than individual investments4. Fiduciaries are allowed to delegate investment management to qualified third parties
A long position in a financial security, such as a stock in the stock market. A bull or long position seeks to profit from rising prices in certain securities. When prices rise, a bull position becomes profitable. If prices fall, the bull position is not profitable. A bull or long position is the most well-known type of position and is what is typically used in "buy and hold" investing. An alternative way to initiate a bull position can include buying call options. Taobiz explains Bull Position A bull position is the opposite of a bear position. A bull position is a trade or investment that is initiated in the hopes that the instrument's price will rise and make a profit. A bull market occurs when prices are rising, and is characterized by investor optimism and confidence that prices will continue to rise.
A non-profit organization that is dedicated to providing investing education that allows individuals to earn positive long-term returns. The association is based in Michigan, and is comprised of investing clubs along with individual investors from around the United States. |||Through its Better Investing Community, the NAIC provides education on a variety of topics from investing basics, mutual funds, stocks and personal finance. The NAIC provides this education through courses, articles and conventions that are organized around the country. The NAIC also strongly emphasizes learning through a group by helping develop investing clubs and facilitating group discussions online.
The intentional selling of stock or other assets on a large scale to create financial pressure on a corporation or government to force social change. Protest divestment is a form of shareholder activism. For example, in the late 1980s, students at many American universities lobbied their schools' endowment funds to stop investing in South Africa. Their end goal was to force South Africa's government to end apartheid. The attention this raised forced many corporations to follow suit, and by 1990 more than 200 U.S. companies had cut ties with the country, resulting in the direct loss of $1 billion of investment.The attention the protest garnered put the issue of apartheid in the national spotlight and Congress passed a series of economic sanctions as a result. This economic pressure created social change as South Africa's government was forced to end racial segregation and give non-whites the right to vote.